Shell declares FM on propylene, ethylene after Pernis fire
This force majeure from the Moerdijk cracker stemmed from the disruption of naphtha supplies from Shell’s Pernis site. The cracker has a 900,000 tons/year ethylene and a 500,000 tons/year propylene capacity.
Shell had experienced a power outage at its Pernis facility in Rotterdam on July 29 due to a fire in a high voltage station. The restart date of the refinery is set for the second half of August at the earliest, as market sources reported. The Pernis site houses a production capacity of 250,000 ton/year for propylene.
A source from Ducor, as a propylene buyer from Moerdijk reported, “Shell has trimmed only a limited amount of our regular quotas following the issue. Therefore, we do not think that our production will be affected to a large extent, considering that demand will be slow in August. Meanwhile, they told us that they will be able to cover downstream demand smoothly as long as the force majeure doesn’t last for longer than 2 weeks.”
In mid-this week, Shin Etsu also declared force majeure on PVC output from its nearby site after Shell’s outage at its Pernis refinery.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- PLAST EURASIA 2022: Eyes on Russian and US supplies with demand woes in focus
- December PE offers to SE Asia imply further drops, yet to respond to China
- Has the bear market for Asian PVC almost run its course?
- Demand outlook for crude oil dims amid China worries
- Asian styrene prices rebound from almost two-year lows
- Turkey’s PE market on brink of new drops for December
- Signs of optimism in China PP and PE markets, but caution remains
- Egypt’s import PP, PE markets flat but domestic prices turn upwards in Nov
- PVC downturn enters 7th month, prices still far from pre-pandemic levels in Europe
- Aggressive US PE offers make a scene across global markets in Q4 after a hiatus of 2 years