LyondellBasell to apply energy surcharge on PP, PE prices from Nov in Europe

According to a letter sent to its customers, LyondellBasell has decided to implement a natural gas and electricity surcharge on all LyondellBasell PP, HD, LD, Catalloy and PB-1 orders supplied after November 1, 2021. The surcharge is currently set at €50/ton.

The producer’s decision was in response to the dramatic and steep increases in natural gas and electricity prices in Europe, according to the letter.

“These price rises are caused by a variety of factors, including ever-increasing demand for electricity and, at the same time, shortages in the markets for natural gas. These factors do not seem to be temporary, and forecasts indicate that the gas and electricity costs will remain elevated and relevant in our manufacturing processes. These utility costs have increased up to 100€/T since last year depending on product and technology,” the company noted.