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Some Texas Resin Production Shut Down as Arctic Freeze Moves Across the US
December 22, 2022


As an Arctic Blast sweeps across the US, at least two major resin producers have shut down production in Texas as a precautionary measure, while others continue monitoring weather conditions.

In separate filings with Texas environmental regulators this week, Chevron Phillips Chemical said it was shutting three Polyethylene units and Ethylene units at its Cedar Bayou plant in Baytown, Texas, due to the prolonged freezing temperatures forecasted.

Braskem also announced this week that it has shut down its Polypropylene operations in Texas.

The extreme weather conditions come nearly two years after Winter Storm Uri hit Texas in February 2021 and shut down petrochemical and resin production in the state. The shutdown paralyzed logistics in and out of the state and sent PE and PP prices to record highs in Q1 of 2021.

Local officials in Texas said the freeze this week is not expected to be as severe as Uri back in February 2021. ERCOT, the state's power grid operator, also said it has made improvements to the power grid over the past 18 months and expects to meet forecasted demand this week.

By The Plastics Exchange.



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