LyondellBasell declares force majeure on US Gulf PE - customers

08 February 2010 23:31  [Source: ICIS news]

HOUSTON (ICIS news)--LyondellBasell has declared force majeure (FM) on polyethylene (PE) from its US Gulf coast manufacturing plants because of feedstock ethylene shortages, customers said on Monday.

Company officials did not immediately reply to a request for confirmation.

According to a letter received by customers, the FM declaration covers all PE products produced at the company’s Chocolate Bayou, Matagorda, Victoria and LaPorte manufacturing facilities in Texas.

PE supply from plants in Morris, Illinois, and Clinton, Iowa, has not been affected, the letter said.

The company warned customers of product shortages and delivery delays and gave no date for when normal supply would be re-established.

A PE buyer said producers made themselves more susceptible to supply interruptions by reducing their inventories to very low levels at the end of 2009.

ICIS has launched weekly pricing reports in Africa for polyethylene and polypropylene. For more information contact Nadine Spoeri
For more on polyethylene visit ICIS chemical intelligence
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By: David Barry
+1 713 525 2653

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