The company cited an equipment breakdown at it's production facilities coupled with feedstock shortages as justification for the declaration. The force majeure applies to US deliveries in August and September. The company anticipated it would resume normal operations sometime during September.
Specific details on the equipment breakdowns were not available and calls to the company were not immediately returned. Conoco further noted that it would be unable to make up for volumes not delivered during August and September.
Meanwhile, US polypropylene supplies remained tight this week and sources talked of potential price hikes in September. Although no confirmed announcements were heard at time of press, the expectation was for a 2- to 3-cents/lb increase in propylene prices and as much as a 5-cents/lb increase on polypropylene as sellers work to expand margins.
In pricing, August homo injection pricing was talked this week in the mid-60s cents/lb range in railcars while copolymer was heard near 68-70 cents/lb delivered.
China Chemical Weekly: http://news.chemnet.com/en/detail-1403616.html
