28 October 2011 11:56 [Source: ICIS news]
LONDON (ICIS)--Polyethylene (PE) production has been brought to a standstill at Polimeri Europa’s site at Dunkirk in France following an incident at the cracker which has led to the company declaring force majeure on olefins, a company source said on Friday.
The company has two PE plants at Dunkirk; a 200,000 tonne/year low density polyethylene (LDPE) unit and a 140,000 tonne/year linear low density polyethylene (LLDPE) plant.
Despite the PE outage, Polimeri Europa expects to be able to supply its customers’ needs.
“PE is not running at Dunkirk but we will have no problems serving our customers as we have enough stock,” said the source.
This is a reflection of how poor PE demand has been in October. Many producers are now turning down output to cope with the slump in demand, which is particularly pronounced in LDPE and LLDPE.
LDPE spot prices are below €1,100/tonne ($1,571/tonne) FD (free delivered) NWE (northwest Europe) at large accounts, and buying interest is low. LLDPE C4 has been reported at similar levels.
Demand remains the single most area of concern in the European PE market.
PE, LDPE and LLDPE are widely used in the packaging and agricultural sectors.
($1 = 0.70)
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