LONDON ,July 14-LyondellBasell has declared force majeure on polypropylene (PP) deliveries from its Brindisi, Italy site, a company source said on Wednesday.
The company is reported to have two PP lines at its Brindisi site, amounting to around 400,000 tonnes/year, but no details were immediately available concerning the issues which led to the declaration of legal restrictions.
PP prices have been firm throughout 2010, increasing by over 30%, and while producers still attempted to raise prices in July, the initiative had begun to stall as product availability improved.
Some producers still reported a very tight stock position as PP production issues and earlier shortages of propylene monomer had tightened supply.
"Buyers are looking to us to cover the shortfall from LyondellBasell, but it's just not the right time. We can t help them," said another major PP producer.
Net PP homopolymer injection prices were reported in a wide range, at 1,200-1,300/tonne ($1,519-1,646/tonne) FD (free delivered) NWE (northwest Europe).
PP producers in Europe include LyondellBasell, Borealis, SABIC, Total Petrochemicals, Dow Chemical, Repsol, INEOS Olefins and Polymers, Polychim and Domo.
($1 = 0. 79 )
The company is reported to have two PP lines at its Brindisi site, amounting to around 400,000 tonnes/year, but no details were immediately available concerning the issues which led to the declaration of legal restrictions.
PP prices have been firm throughout 2010, increasing by over 30%, and while producers still attempted to raise prices in July, the initiative had begun to stall as product availability improved.
Some producers still reported a very tight stock position as PP production issues and earlier shortages of propylene monomer had tightened supply.
"Buyers are looking to us to cover the shortfall from LyondellBasell, but it's just not the right time. We can t help them," said another major PP producer.
Net PP homopolymer injection prices were reported in a wide range, at 1,200-1,300/tonne ($1,519-1,646/tonne) FD (free delivered) NWE (northwest Europe).
PP producers in Europe include LyondellBasell, Borealis, SABIC, Total Petrochemicals, Dow Chemical, Repsol, INEOS Olefins and Polymers, Polychim and Domo.
($1 = 0. 79 )
