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Force Majeures: Ethylene and Propylene FMs and what it means to you
This week, we had three FM announcements concerning propylene/polypropylene. While most in the BioPharma and Electronics industry would dismiss these events as not applying to them, these materials are basic building blocks for products used in many applications.
The bottom line is that when you hear of issues in the ethylene/propylene market, you need to be aware of your products that are downstream. Below are some examples of materials to monitor for supply disruptions:
|
Acetone |
Packaging |
|
Acetonitrile |
Rheology Modifiers |
|
Acrylic Acid |
Pipet Tips |
|
Acrylonitrile |
Polyurethanes (co-product HCl) |
|
Bags, Autoclave |
Propylene Glycol and Derivatives |
|
Bottles and Closures |
Propylene Oxide |
|
Butadiene |
Butadiene |
|
Culture Tubes |
Spill Control Materials |
|
Filters |
Surfactants |
|
Glycerol, Synthetic |
Swabs |
|
IPA |
Tributylphophate |
|
Microplates |
Tubes and Vials |
|
Mops |
Wipes |
Shell,
Singapore: On 2December, Shell Singapore declared FM on base chemicals at its Pulau Bukom plant (ETA, possibly 3 weeks). Currently, Shell is buying ethylene and propylene 3P to keep chemical supplies going. Downstream products produced at this plant include (click on products to see analysis):
Benzene (impacts toluene, xylene, and others)
Butadiene (impacts THF, nitrile gloves and others)
Ethylene
glycol (impacts packaging, cleanroom materials and others)
Ethylene
oxide (impacts sterilants,packaging and others)
Isopropanol (impacts cleaning materials, preservatives, and others)
Propylene
glycol (primarily used as a solvent, but also as an ingredient in e-cigs)
Xylene, mixed (impacts histology, packaging and others)
Shell Singapore declares force majeure on base chemicals
Ineos
Olefins & Polymers: On December 1, Ineos declared FM on
polypropylene stating feedstock issues at its California Plant.
http://www.icis.com/resources/news/2015/12/02/9949705/ineos-declares-pp-force-majeure-on-feedstock-issue/
Lyondell Basell, Bayport: In October, Lyondell declared force majeure (FM) on polypropylene due to a power outage at its Equistar Bayport Texas plant. Even though the plant was restarted about 2 weeks later, the FM remained in effect until 1December.
Author: Charlotte Hicks
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“ The article is based on the information available in public and which the author believes to be true. The author is not disseminating any information, which the author believes or knows, is confidential or in conflict with the privacy of any person. The views expressed or information supplied through this article is mere opinion and observation of the author. The author does not intend to defame, insult or, cause loss or damage to anyone, in any manner, through this article.”
