Citing operational issues, Chevron Phillips Chemical (CP Chem) on Tuesday declared force majeure on polymer-grade propylene, the company said in a letter to customers.
The company noted in the letter that it was unable to meet all of its product obligations and as a result was forced to allocated available supply until further notice. Calls to CP Chem were not immediately returned.
CP Chem's FM follows one declared by Shell at its Norco, Louisiana, complex just days ago and confirmed to Platts late Monday. In addition, propylene supplies have been tightened by recent production issues by Ineos and Petrologistics.
The latest declaration was expected to put even more upward pressure on propylene prices, which have been on a steady upswing recently.
December PGP bids were heard at 69 cents/lb to start the week, while refinery-grade product was heard bid at 64 cents/lb. Given recent market developments, some participants have talked of potential contract hikes as high as 12-14 cents/lb though no nominations were heard at time of publication.
--Bernardo Fallas
The company noted in the letter that it was unable to meet all of its product obligations and as a result was forced to allocated available supply until further notice. Calls to CP Chem were not immediately returned.
CP Chem's FM follows one declared by Shell at its Norco, Louisiana, complex just days ago and confirmed to Platts late Monday. In addition, propylene supplies have been tightened by recent production issues by Ineos and Petrologistics.
The latest declaration was expected to put even more upward pressure on propylene prices, which have been on a steady upswing recently.
December PGP bids were heard at 69 cents/lb to start the week, while refinery-grade product was heard bid at 64 cents/lb. Given recent market developments, some participants have talked of potential contract hikes as high as 12-14 cents/lb though no nominations were heard at time of publication.
--Bernardo Fallas
