10 November 2008 15:13 [Source: ICIS news]
LONDON (ICIS news)--INEOS Olefins & Polymers USA will close a significant proportion of its North American polypropylene (PP) capacity, the company said on Monday.
Two PP bulk phase units at the Battleground Manufacturing Complex in ?xml:namespace>
The closure represents approximately 520m lbs/year (236,000 tonnes/year) of homopolymer and random copolymer capacity. INEOS Olefins & Polymers USA said it produces 2.8bn lbs/year of PP a year making it the second largest producer in the
One of the two lines at
“INEOS remains committed to delivering quality products that meet our customers’ needs, and we believe that our decision clearly demonstrates our intent to optimise our asset base and assure a robust polypropylene business consistent with the overall strategies of Olefins & Polymers USA”, said Dennis Seith, CEO of the INEOS’ Olefins & Polymers USA business.
US PP contract prices were headed for a large drop in November on the back of weak demand and lower feedstock costs, sources said during the week ended 7 November. October resin prices were down by 20 cents/lb ($441/tonne) or more, and November contract decreases were likely to be in the range of 25-30 cents/lb, buyers said.?xml:namespace>
Falling PP spot prices in the past two weeks and initial monomer settlements at minus 30 cents/lb for November were driving market sentiment, buyers said.
To avoid exposure to freefalling market prices, buyers were operating on minimal inventories, and this exacerbated an already sluggish demand picture. Some producers were throttling back production significantly to cope.
Flint Hills Resources said it would permanently close its
Pinnacle Polymers shut down its 410,000 tonne/year plant for a week recently, but it was unknown if the facility was restarted.
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