Borealis Stenungsund LDPE down on cracker mechanical failure

23 August 2012 16:47  [Source: ICIS news]

LONDON (ICIS)--Borealis’s 350,000/tonne/year low density polyethylene (LDPE) plant in Stenungsund, Sweden, is down following mechanical failure at the cracker at the site, a source at the Austria-based producer said on Thursday.

The LDPE plant, which had been due to be brought down for a three-week maintenance outage in three weeks’ time, will undergo its maintenance now.

It is not clear how long the cracker problems will last.

“We will be able to supply our customers, as we were already preparing for the maintenance,” said the source.

The LDPE unit in Sweden produces material used in the wire and cable sector.

Polyethylene (PE) buyers have been under heavy pressure to accept increases in August and some have paid hikes of €200/tonne ($250/tonne) compared with July.

High naphtha costs look likely to lead to an increase in the September ethylene monomer contract price, and also the likelihood of another price hike for PE in September.

LDPE net levels are trading around €1,350-1,400/tonne FD (free delivered) NWE (northwest Europe).

($1 = €0.80)

By: Linda Naylor
+44 20 8652 3214

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