Formosa declares force majeure from US Texas PP plant

HOUSTON (ICIS)–Formosa Plastics Corporation USA has declared force majeure on Formolene polypropylene (PP) products from its plant in Point Comfort, Texas, as of 8 August, according to a customer letter.

The letter said that the plant had experienced “unexpected operational difficulties.”

According to the ICIS Supply and Demand Database, Formosa’s Point Comfort PP plant has a capacity of 822,000 tonnes/year.

Prompt PP availability has been limited in recent weeks amid some production issues along with improving demand.

The US manufacturing sector has been picking up after a sharp decline in activity in April and May, with June and July showing expansions in manufacturing activity, according to data from the Institute for Supply Management (ISM).

PP sales in the US were higher year on year in June, although sales for the first six months of 2020 were 4.7% lower compared with the first six months of 2019, according to data from the American Chemistry Council (ACC) and Vault Consulting.

PP is used for packaging, ropes, carpets, plastic parts, loudspeakers and automotive parts.

Major US PP producers include Braskem, ExxonMobil, Formosa, INEOS, LyondellBasell, Pinnacle Polymers, Phillips 66 and Total Petrochemicals.

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