Oilfield & Energies
Total declares force majeure on PP copolymer from US Texas plant 6th June 2018
Total Petrochemicals and Refining USA declared a force majeure on all of its impact copolymer polypropylene (PP) products from its plant in Texas (USA), which has a capacity of 1.224m tonnes/year, according to a story published by ICIS news yesterday (www.icis.com).
The force majeure was attributed to a series of unplanned and external events that have impacted production levels. As a result, it is said that Total will implement an allocation program for impact copolymer PP, starting with shipments on 11 June.
The US PP market had already been facing supply tightness in the wake of LyondellBasell’s force majeure from its 638,000 tonne/year PP plant in Louisiana. While demand has been good in recent months, there is some suggestion that demand may slow down in June following a sharp spike in domestic PP contract prices. US PP contracts are generally formula-based and are set at polymer grade propylene (PGP) values plus an adder.
Major US PP producers include Braskem, ExxonMobil, Formosa, INEOS, LyondellBasell and Total Petrochemicals.