US Pinnacle Polymers declares force majeure on PP

24 June 2013 22:12  [Source: ICIS news]

HOUSTON (ICIS)--US polypropylene (PP) producer Pinnacle Polymers declared force majeure on PP because of difficulty obtaining propylene, sources said on Monday. 

"This situation is the result of an interruption in the normal supply of monomer to our plant from multiple sources," the company wrote in a 24 June customer letter obtained by ICIS.

It was not clear what caused the interruption of propylene supply to the facility, in Garyville, Louisiana.

"Due to the volatile nature of this event, we are unable to calculate the impact of this interruption at this time," the company said.

The company is the second to declare force majeure on PP this month, following an 11 June force majeure announcement from Formosa Plastics on all Formolene PP products. Sources said that force majeure is still in effect.

Supply in the PP market remains very tight, and this situation will only create more tightness, sources said.

Pinnacle Polymers has a 470,000 tonne/year PP plant in Garyville, Louisiana, according to ICIS plants and projects.

By: Michelle Klump
+1 713 525 2653

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