29 July 2010 12:26 [Source: ICIS news]
LONDON (ICIS)--Total Petrochemicals and INEOS’s 300,000 tonne/year joint-venture polypropylene (PP) plant at Lavera in France is out of action and will be down for several weeks due to technical issues, market sources said on Thursday.
Both companies declined to comment but buying sources reported that notification of force majeure from INEOS was being conveyed to the market. Total already had force majeure in place on PP deliveries in Europe following a technical incident in May.
“This is bad news,” said a buyer. “I think prices will go down in line with propylene, but no more than that. If product is tight, prices won’t crash.”
PP producers had indicated that they would either roll July prices over into August, or give either a portion of or all of the drop in the August propylene monomer contract price.
The monomer contract was settled at €940/tonne ($1,220/tonne) FD (free delivered) NWE (northwest Europe) on 27 July, down by €38/tonne from July.
Homopolymer injection PP prices were trading around €1,200/tonne FD NWE in July.
($1 = €0.77)
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