LyondellBasell cuts Europe Dec PP output by 40%

12 December 2008 16:02  [Source: ICIS news]

LONDON (ICIS news)--LyondellBasell is cutting its European polypropylene (PP) output by 40% in December due to weak demand, a company source said on Friday.

“We need to generate a decent margin in the business,” said the source.

PP prices have plummeted in the fourth quarter, as supply has outstripped demand and export possibilities have been few and far between.

PP homopolymer injection spot prices have fallen to €600/tonne ($800/tonne) FD (free delivered) NWE (northwest Europe) in December, from €1,130/tonne FD NWE at the end of September.

The fourth-quarter propylene contract price stood at €953/tonne FD NWE.

A decrease of €300-500/tonne was under discussion for first-quarter propylene.

“We will continue to run at reduced rates in January and will adapt supply to demand,” the LyondellBasell source said.

LyondellBasell has PP capacity at Knapsack and Wesseling in Germany; Brindisi, Ferrara and Terni in Italy; Tarragona, Spain and Carrington, UK.

PP and PE producers in Europe include LyondellBasell, Borealis, SABIC, Total Petrochemicals, Dow Chemical, Repsol, INEOS Polyolefins and Domo.

($1 = €0.75)

For more on PP visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Linda Naylor
+44 20 8652 3214

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