LyondellBasell lifts force majeure on polyethylene at several sites: letter

LyondellBasell subsidiary Equistar Chemicals has lifted its force majeure on polyethylene from petrochemical sites in Texas, Louisiana, Illinois and Iowa, the company said in a letter to customers obtained by S&P Global Platts May 3.

Morris, Illinois (HDPE, LDPE, LLDPE, PE Specialties), Clinton, Iowa (HDPE, LDPE), Lake Charles, Louisiana (LDPE, LLDPE), La Porte, Texas (LLDPE) and Victoria, Texas (HDPE) force majeures were all lifted, the letter said.

"Although our force majeure declaration is being lifted, PE supply remains limited. Consequently, we will be applying a strict sales control program until further notice in an effort to facilitate supply against customer demand. All orders will be subject to availability and confirmation." the company said.

"As a matter of practice, we do not provide specific details about our units, operational status, production figures or supply for competitive reasons," company spokeswoman Chevalier Gray said.

Polyethylene resin, particularly LDPE and HDPE, have been talked tight by market participants in recent months amid healthy demand, with spot and export resin particularly tight.

The severe freeze that hit the US Gulf Coast in February further aggravated supplier output as many companies reduced rates and some shut down.

Chocolate Bayou, Texas (HDPE), Matagorda, Texas (HDPE) and La Porte, Texas (LDPE, EVA) will remain under force majeure until further notice, the company said.

Platts assessed LDPE April 3 at $1,984-$2,006/mt, LLDPE butene at $1,687-$1,709/mt and HDPE Blowmolding $1,852-$1,874/mt FAS Houston basis, all unchanged on the day.