LyondellBasell declares FM on Aubette LDPE due to low stocks

03 June 2010 09:05  [Source: ICIS news]

LDPE is used in food packagingLONDON (ICIS news)--Major plastics producer LyondellBasell has declared force majeure on deliveries of certain grades of low density polyethylene (LDPE) from its 320,000 tonne/year plant at Aubette in France, a company source said on Thursday.

“The plant is due up again soon but our stock position is such that we could not avoid force majeure,” said the source.

The unit had been suffering technical difficulties for several days and the low stock position at the site led to the declaration.

LDPE availability was already tight throughout Europe and buyers had paid increases for the past five months. PE producers were now aiming to raise prices again, by as much as €80/tonne ($98/tonne) in one case, but buyers resisted such hikes as the monthly ethylene contract for June had only risen by €10/tonne.

Initial reports from producers suggested they were managing to implement increases of €40/tonne, but this was not yet fully confirmed by buyers. LDPE net prices were reported in the mid-to-high-€1,200s/tonne FD (free delivered) NWE (northwest Europe).

LDPE is used mainly in the manufacture of film for the packaging industry.

($1 = €0.82)

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By: Linda Naylor
+44 20 8652 3214

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