SABIC, INEOS forces majeures on PP still in place

09 April 2010 10:55  [Source: ICIS news]

LONDON (ICIS news)--Forces majeures (FM) on polypropylene (PP) from INEOS and SABIC in the UK and the Netherlands respectively are still in place despite both plants running normally, sources said on Friday.

“We expect to lift it [force majeure] at the end of the month,” said an INEOS company source. Force majeure had been called in mid-March.

"Our FM will be lifted in the course of April,” said a SABIC source, commenting on the copolymer restrictions which had been in place since February.

LyondellBasell lifted force majeure from its 210,000 tonne/year unit in Carrington, UK, this week. Monomer issues had delayed the full start-up of the plant after a twelve-day setback following a maintenance shutdown.

PP prices had increased sharply in 2010 due to tight availability, brought about mainly by propylene restrictions.

PP prices had already risen by €200/tonne ($267/tonne) in 2010, and now a third hike, reported at €70-130/tonne, depending on the position of the market source canvassed, was being implemented in April.

Net homopolymer injection prices were trading around €1,200/tonne FD (free delivered) NWE (northwest Europe).

Many sources agreed the current price hike was due to product shortages rather than a particularly strong market.

“It’s a lousy market and we can’t even get the material to supply a lousy market,” one buyer was reported to have complained.

PP producers in Europe include LyondellBasell, Borealis, SABIC, Total Petrochemicals, Dow Chemical, Repsol, INEOS Olefins and Polymers, Polychim and Domo.

($1 = €0.75)

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By: Linda Naylor
+44 20 8652 3214

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