Series of FMs adds to Europe PE, PP buyers’ supply woes

LONDON (ICIS)–The latest force majeure (FM) in Europe was declared by Total Petrochemicals on the entirety of its polypropylene (PP), on propylene supply issues, but several other cases remain in place, sources said on Friday.

Polyethylene (PE) and PP supply in Europe is tight to short and hefty hikes are targeted for May.

FMs in place

* low density polyethylene **linear low density polyethylene *** high density polyethylene **** polypropylene

LyonellBasell’s HDPE plant in Munchsmunster, Germany, is now widely said to be back on stream. LyondellBasell declined to comment on the status of the plant but FM is said to remain in place.

Sources also said that Polychim’s PP unit at Dunkirk, France, was coming back on stream. The company has not responded to requests over the status of the plant.

Versalis has also declined to comment on the status of its plant at Dunkirk, but confirmed that FM is still in place. Speculation surrounding the start-up of the Polychim PP plant has led sources to believe that the cracker at the site may also be back on stream, and therefore that Versalis’s PE may also be back on stream. There has been no confirmation of this, however.

The cracker at Schwechat is now thought to be back on stream, and polymer units at the site are expected to follow. FM from Borealis will remain in place for some time to allow for the build-up of stock.

The company’s PP plant at Kallo, Belgium, is now back in production but FM remains in place.

Buyers said they had been informed that Total’s HDPE line at Gonfreville is being brought back on line, but Total has declined to comment on the status of this unit. Inventories of HDPE pipe are very low.

Sources said that production was running at reduced rates at INEOS’s Lillo plant but INEOS declined to comment on this.

Gelsenkirchen ethylene production is said to be back to normal, and while sources presumed that SABIC’s PE lines were also be on stream, availability from the site was still very much restricted, according to buyers. SABIC has not commented on the status of its plant.