FocusFinland port strikes affect Borealis PP exports

18 March 2010 15:10  [Source: ICIS news]

LONDON (ICIS news)--Port strikes in Finland are affecting polypropylene (PP) exports from plastics giant Borealis’s Porvoo site, a company source said on Thursday.

Borealis produces both PP and polyethylene (PE) at its Porvoo site, but as most of the PE from the site serves the local market, it was PP which was most affected.

“A significant part of Porvoo PP is exported,” said the site, “and we make copolymers there.”

The strike began on 4 March and it was not clear how long it would continue, said the source.

PP availability in general was tight but copolymer was posing particular problems for buyers.

An earlier unplanned production outage at SABIC’s copolymer site in Geleen  in the Netherlands which had led to the company declaring force majeure, coupled with general propylene restrictions , left the market tight and even short.

PP buyers had paid as much as €200/tonne ($274/tonne) in increases in the first quarter of 2010, and were likely to face more in April, said producers who expected an increase in the new monthly propylene contract price.

Net homopolymer injection PP prices were trading around €1,100/tonne FD (free delivered) NWE (northwest Europe) mid-March.

$1 = €0.73

For more on PP visit ICIS chemical intelligence
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By: Linda Naylor
+44 20 8652 3214

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