"There is a growing concern about prompt polyethylene supply out of France," a producer said, adding: "We already see an impact in the low density polyethylene market, it is getting tighter now," he added.
Deliveries of LDPE out of LyondellBasell's Aubette unit have been hit by the strike, a company source said Wednesday.
"Polymer transportation has been affected by the strike, we are not able to load our trucks [for deliveries to customers] out of Aubette, it is all blocked now," he said. The 320,000 mt/year Aubette plant continues to run normally, he added.
The bulk of French refineries and two major oil ports have decided to continue the strike against government plans to overhaul pensions which started Tuesday, CGT labor union sources said Wednesday.
All six of Total's French refineries are halting operations and are in a various stage of a shutdown, a company spokesman said Wednesday. Meanwhile, distribution of fuel has resumed this morning from ExxonMobil's Fos sur Mer facility, after being blocked Tuesday, a company spokeswoman said.
ExxonMobil's second refinery in France, Port-Jerome Gravenchon, did not join the strike and has continued operations and fuel supplies, the spokeswoman said. LyondellBasell's refinery Berre L'Etang and Ineos' Lavera were reported to have extended the strike, although the companies were not available for comment.
It was not clear whether LyondellBasell's 450,000mt/year steam cracker at Berre, France was affected by the strike. A company source declined to comment on the status of the cracker.
Ineos and Total were not immediately available to comment on the status of the Naphtachimie steam cracker at Lavera. The cracker, with a capacity to produce 745,000 mt/year of ethylene, is a joint venture between Total Petrochemicals and Ineos.
"Ethylene vessels are not moving appropriately out of France--there are delays and it is affecting the Tarragona [Spain] pocket," an olefin producer in the region said.
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