ExxonMobil cuts PE, PP supply on feedstock shortage — sources

03 April 2014 08:30 Source:ICIS News

SINGAPORE (ICIS)--ExxonMobil has reduced its supply of linear low density polyethylene (LLDPE) and polypropylene (PP) from its facilities in Jurong Island, Singapore because of an on-site shortage of feedstock propylene and ethylene, industry sources said on Thursday.

The unexpected shutdown of its 1m tonne/year cracker at the same site created a shortfall in its ethylene and propylene feedstock supply, the industry sources said.

ExxonMobil runs three PE plants in Jurong Island with a combined capacity of 1.9m tonnes/year and two PP plants with a total capacity of 905,000 tonnes/year, according to ICIS data.

Some importers in China said the feedstock shortfall affected ExxonMobil’s butene-based LLDPE because the producer reduced its supply of this grade.

ExxonMobil’s supply of metallocene LLDPE (MLLDPE) was not reduced, the importers in China said.

An importer in Indonesia said that ExxonMobil’s supply of PP flat yarn and non-woven grades was reduced.

The Indonesian importer and an importer in Thailand said their supply of block copolymer was not affected.

ExxonMobil declined to comment.

Additional reporting by Angeline Soh, Trixie Yap

By Chow Bee Lin