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Formosa Plastics USA ramps up HDPE production: sources

Highlights

HDPE film unit heard back online

Two of three HDPE resins flat on week

  • Author
  • Jacquelyn Melinek
  • Editor
  • Manish Parashar
  • Commodity
  • Petrochemicals

Houston — Petrochemicals producer Formosa Plastics USA was heard resuming production at its high density polyethylene film unit, sources said Oct. 2.

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Formosa Plastics spokesman Fred Neske declined to comment on the company's "operational issues or plant status."

Formosa Plastics' 675,000 mt/year HDPE film unit was shut down for maintenance in July, and was expected to restart in early September, sources previously told S&P Global Platts on June 11.

"I think that's why the film is so high, because it's not fully ramped up and their supply is limited," one trader source said.

Platts last assessed US HDPE blowmolding spot export pricing unchanged on the week at $981-$1,003/mt (44.5-45.5 cents/lb) Sept. 30. HDPE injection was also flat on the week at $937-$959/mt (42.5-43.5 cents/lb), while HDPE film increased $22 on the week at $1,036-$1,058/mt (47-48 cents/lb), all on FAS Houston basis.