Corrected: Dow reduces LLDPE production at Spain site

Author: Linda Naylor


Correction: In the ICIS news story headlined “Dow reduces LLDPE production at Spain site” dated 27 August 2008, please read in the fourth paragraph …close to 500,000 tonnes/year of LLDPE… instead of …close to 500,000 tonnes/year of LDPE and LLDPE… A corrected story follows.

LONDON (ICIS news)--Dow Chemical has reduced linear low density polyethylene (LLDPE) production at Tarragona, Spain, due to an unplanned cracker outage at the site which led to a declaration of force majeure on ethylene and propylene, a company source said on Wednesday.

“We are having to run our trains at reduced rates at the moment. C6 in particular will be tight but some stock has been built up over summer and we don’t expect any major supply problems,” said the source.

The status of the company’s 95,000 tonne/year low density polyethylene (LDPE) plant at the site was not yet known.

The company has the capacity to produce close to 500,000 tonnes/year of LLDPE at the site, according to the ICIS plants and project database.

Dow also has other LDPE and LLDPE production sites in Terneuzen, the Netherlands, and Schkopau, Germany.

The cutbacks came at a time when buyers expected the steady stream of price hikes in Europe to come to an end, although some producers were still attempting to raise prices in September.

Monthly LDPE is trading close to €1,600/tonne ($2,353/tonne) FD (free delivered) NWE (northwest Europe) on a gross basis for August but spot prices have softened to €1,450/tonne FD NWE as global economies slow and the gap between Asian and European prices widen.

PE suppliers in Europe include Saudi Basic Industries Corp (SABIC), LyondellBasell, Borealis, Polimeri Europa, Dow, Repsol, Total Petrochemicals and INEOS Polyolefins.

($1 = €0.68)

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