22 July 2009 14:00 [Source: ICIS news]
LONDON (ICIS news)--Major plastics producer LyondellBasell has lifted force majeure restrictions on supplies of high density polyethylene (HDPE) film from its 320,000 tonne/year plant at Plock, Poland, as normal production was now fully under way, a company source said on Wednesday.
Production issues had resulted from cracker problems which were now resolved, the source said. The force majeure was declared on 25 June.
Polyethylene (PE) prices rose by around €100/tonne ($143/tonne) in July and high crude oil prices, coupled with strong demand and low stocks at both the producer and converter level, meant that producers were also aiming to raise prices further in August.
HDPE film prices were around €1,000/tonne FD (free delivered) NWE (northwest ?xml:namespace>
Sources admitted that price increases had taken place mainly due to heavy production cutbacks rather than strong local demand.
Borealis called force majeure on some HDPE grades on Wednesday 15 July and INEOS also declared legal restrictions on one grade of many which it produces at
“They are cutting back so much that any small production hiccup leads to force majeure,” said one disgruntled PE buyer.
PE producers in
($1 = €0.70)
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