INEOS declares FM on Lavera propylene as cracker goes down

18 June 2010 16:47  [Source: ICIS news]

LONDON (ICIS news)--INEOS has declared force majeure on propylene supplies from its joint venture Lavera, France, cracker, company spokesman Richard Longden said on Friday.

“An unforeseen technical issue on the cracker at Lavera has forced our operator Naphta Chimie to shut down the cracker for an estimated period of around 8 days” he said.

The cracker was reported to have gone down on 17 June.

Longden also confirmed that force majeure had been declared on polypropylene supplies from the site.

Propylene was under pressure in Europe due to improved supply since most crackers and refineries were running well and weakness in global markets meant that Europe was now an attractive destination for deep-sea tonnes.

Spot prices were being assessed in the low €900s/tonne ($1,100s/tonne) CIF (cost insurance freight) NWE (northwest Europe) by ICIS.

July contract discussions were expected to get under way next week; June had settled at a rollover €1,000/tonne FD (free delivered) NWE.

($1 = €0.81)

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

By: Nel Weddle
+44 20 8652 3214

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