Borealis’s Burghausen cracker and polymers go down

Source: ICIS News

2009/10/07

LONDON (ICIS news)--Major plastics producer Borealis’s cracker and polyolefins units at Burghausen in Germany are out of action after a technical incident forced the company to halt production on Sunday 4 October, a company source said on Wednesday.

“The polyethylene (PE) and polypropylene (PP) came down on Sunday, and the cracker on Monday. We hope to get the cracker back on stream tomorrow [8 October] and the PE and PP on Friday,” said the source.

Borealis has two PP units at the site, with capacities of 330,000 tonnes/year and 240,000 tonnes/year, and a high density PE (HDPE) plant with a capacity of 160,000 tonnes/year.

“We will have lost five days of production and we are already tight on PP in particular,” said the source.

Borealis had planned to increase PP prices in October, but a €28/tonne ($41/tonne) reduction in the October monthly propylene contract led to some erosion in prices.

“We are able to do a rollover for October pricing as we are so short,” said the source.

PP buyers had been pushing for a €50/tonne decrease in October PP, but so far producers were not willing to give in to such pressure. They reported a low stock position in general.

Spot offers were well below the monthly gross price for homopolymer injection of above €1,000/tonne free delivered (FD) northwest Europe (NWE). Some imported product was reported offered well below €900/tonne FD NWE, but was not inciting any buying interest.  

($1 = €0.68)

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