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More Resin Producers Lifting Force Majeures
July 14, 2021

The North American Polyethylene (PE) market could see better supply availability from Canada after another producer lifted its Force Majeure (FM) declaration, which has been in place for just over two months.

In a letter obtained to customers, Nova Chemicals said that it is lifting its FM for all PE resins produced from its Sarnia region in Ontario, Canada, including Moore LDPE, Moore HDPE, and SCLAIR products. The FM was declared back on April 27 following a mechanical failure at its Corunna ethylene cracker, which supplies ethylene to its PE facilities in the Sarnia region.

Nova announcement comes as at least four other PE producers remain on FM.

Meanwhile, producers in the Polypropylene (PP) market are also building towards regular supply positions. LyondellBasell said on July 1 it lifted the FM on PP at its Lake Charles, Louisiana facility but would keep a sales control program in place until further notice to help facilitate supply and customer demand.

As many as five other producers remain on PP force majeure following the severe winter weather in February. Official supply allocations for PE and PP also remain largely in place, with limited availability in the spot markets.

Although PE and PP inventory has been building back up, Resin production remains at risk due to potential issues like the active hurricane season, strong energy futures, electricity grids at capacity during the summer heatwave across the country, supply chain interruptions, and prohibitively high domestic and international freight rates.

By Brian Balboa for The Plastics Exchange.

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