LyondellBasell declares force majeure on PP copolymers

28 January 2010 21:28  [Source: ICIS news]

HOUSTON (ICIS news)--LyondellBasell has declared force majeure (FM) on block and random copolymers from its Lake Charles polypropylene (PP) plant in Louisiana, market sources said on Thursday.

A company spokesperson declined to comment.

According to sources, the declaration was made late last week, and the plant has already resumed normal operations.

The expected duration of the FM and the capacity of the affected units was not known.

PP buyers and sellers said the market was tight, especially for copolymer grades.

Impact copolymer typically commands a 2 cent/lb ($44/tonne, €31/tonne) premium over injection and raffia homopolymer in the US, but spot material is now 3-4 cents/lb higher in some situations, a seller said.

January block copolymer prices for small-volume domestic buyers were 71.5-73.5 cents/lb DEL (delivered), according to data from global chemical market intelligence service ICIS pricing.

Major US PP producers include INEOS, LyondellBasell, Dow Chemical, Phillips Sumika, Sunoco, Pinnacle, Formosa, Total, ConocoPhillips, ExxonMobil and Flint Hills Resources.

($1 = €0.71)

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

By: David Barry
+1 713 525 2653

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