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TotalEnergies Lifts Force Majeure on Polypropylene from Texas Facility
July 12, 2022
Major North American resin producer TotalEnergies announced this week that it was lifting a force majeure (FM) on Polypropylene (PP) at its La Porte, Texas, facility, which began in April.
In a letter to customers, the company said exiting FM will not open the door to unlimited supply for PP grades, and additional time is needed to rebuild inventories and re-establish a safety stock of raw materials to reasonable levels amid hurricane season.
The FM announcement comes as PP prices have been on a decline over the past few months due to a glut of inventory and weak demand. PP contract prices have fallen by a net $.18/lb since April and are on track for a fourth consecutive monthly decline in July as feedstock monomer costs weigh on the market.
Additional capacity from Canada is also supporting lower PP pricing after Heartland Polymers began filling railcars last week from its facility in Fort Saskatchewan, Alberta.
By The Plastics Exchange.
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