26 July 2012 20:34 [Source: ICIS news]
HOUSTON (ICIS)--US polypropylene (PP) producer Phillips 66 is experiencing operational difficulties at one of its PP lines at its plant in Linden, New Jersey, sources said on Thursday.
Buyers and other market participants said they were informed by the company of an outage this week.
A company spokesman declined to comment, citing Phillips 66's policy of not discussing day-to-day operations at its facilities.
It was not clear when the line went down. However, one market participant, who said it had learned of the outage from a sales representative, said it was told the line would be brought back up sometime over the weekend.
In total, market participants said they believed production would be delayed by at least a week.
Reaction to the outage was mixed, with some market participants saying it will have no significant impact on the market, and others saying the situation is exacerbating the existing tightness in the market.
"I think any lost volume right now is going to have some impact," said a trader.
A buyer said it was told by the company that its orders for August would be delayed. The buyer said it may try to secure additional material from other producers, but added that it would be difficult because the market is very tight.
Phillips 66 operates a 350,000 tonne/year PP plant in Linden, according to ICIS plants and projects.
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