One US PP Force Majeure Lifted, Allocations Remain
July 01, 2021
The tightly supplied US Polypropylene (PP) market could see some downward pricing pressure as one major producer lifts its Force Majeure (FM). LyondellBasell said in a letter obtained to customers it will lift the FM on PP at its Lake Charles, Louisiana facility.
Although the FM at Lake Charles is being lifted, the company said its Bayport, Texas facility would remain under FM until further notice, and with supply still limited, it would apply a sales control program until further notice to help facilitate supply and customer demand.
The company declared with FM in February following Winter Storm Uri, which impacted production and logistics for many producers in the petrochemical and polymers industry.
Market sentiment has since maintained that supply availability is tight across North America as producers build back to normal inventory positions. As many as five other producers remain on PP force majeure following the severe winter weather in February.
The lifted FM at Lake Charles comes after the spot market saw Homopolymer and Copolymer Injection prices ease a tad last week for the first time since May, but still remain in the vicinity of record levels.
According to The Plastics Exchange, homopolymer spot levels came down a penny to $1.40/lb last week, while Copolymer spot levels came down a penny to $1.50/lb. The decline came after both Hopo and Copo were flat for nearly three weeks.
By Brian Balboa for The Plastics Exchange.
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