Europe LBI calls FM on PP from Carrington

12 February 2014 14:31 Source:ICIS News

LONDON (ICIS)--LyondellBasell has declared force majeure on deliveries of polypropylene (PP) from its 210,000 tonne/year Carrington site in the UK, buyers said on Wednesday.

“We got a letter this morning informing us of FM,” said a buyer.

LyondellBasell does not comment on the status of its operations, but buyers received a letter on Wednesday informing them of legal restrictions on full PP volumes because of a lack of propylene.

“Our propylene supplier for the Carrington plant has itself declared force majeure due to a shutdown of the cracker caused by a power failure at its site,” said the letter.

LyondelBasell is understood to source most of the propylene feedstock for its Carrington PP plant from the Essar refinery at Stanlow in the northwest of the UK.

It was not clear how serious the restrictions on PP would be, but a couple of buyers canvassed said they expected to be able to source material elsewhere if it came to it, as supply is not short

PP prices are rolling over into February, with some sellers saying they are managing to improve margins by a few euros.

Most sources see a balanced, uneventful market at present and homopolymer injection prices are quoted in a wide range, of €1,230-1,300/tonne FD (free delivered) NWE (northwest Europe) on a net basis.

PP is used widely in packaging and household goods sectors and also in the automotive industry. 

By Linda Naylor