Chevron Phillips Chemical has actually declared a pressure majeure on polyethylene supply, it stated in a letter to clients Monday. A duplicate of the letter was gotten by Platts.

The relocation comes a week after a fire at the firm's Port Arthur plant hurt two workers and triggered a vapor cracker offline. Chevron Phillips Chemical on Friday informed consumers the closure was impacting its capability to supply ethylene and it was declaring a "contingency on all ethylene sales."

chelating agent has actually been revealed for a reboot of the 830,000 mt/year vapor cracker.

The firm stated in Monday's letter that it was still in the process of evaluating how long any type of polyethylene allowances would last.

"Please be ensured that CPChem will certainly work carefully to reduce the influence of this occasion on your business and return to full polyethylene distributions asap," the letter said.

The United States PE market has currently been talked limited in current weeks, with several manufacturing as well as supply concerns from a number of producers stated to be restricting item availability. Other US manufacturer Equistar recently stated a pressure majeure for polyethylene from its Matagorda and also Victoria, Texas, plants, pointing out feedstock supply disruptions.

Numerous market resources have claimed the problems would likely result in flat domestic contract settlements for July, in spite of some phone calls from purchasers for declines previously in the month.

For June, high thickness polyethylene agreements were examined for impact molding at 83-84 cents/lb ($1,830-1,852/ mt) delivered-rail auto basis; 83-84 cents/lb ($1,830-1,852/ mt) for injection; and 86-87 cents/lb ($1,896-1,918/ mt) for HMW film.

Low-density polyethylene contracts were evaluated at 92-93 cents/lb ($2,028-2,050/ mt) delivered-rail car basis as well as linear low-density polyethylene agreements were assessed at 79-80 cents/lb ($1,742-1,863/ mt) delivered-rail auto basis.


The concerns have likewise made it more difficult for investors to secure item for export, resources said.