Citing operational issues, Chevron Phillips Chemical (CP Chem) has declared force majeure (FM) on polymer-grade propylene, on Tuesday, as per Platts. CP Chem noted that it was unable to meet all of its product obligations, forcing it to allocate available supply until further notice. This declaration is expected to exert added upward pressure on propylene prices, which have been on a steady upswing recently. CP Chem's FM follows the FM declared by Shell at its Norco, Louisiana, complex late last week. In addition, propylene supplies have been tightened by recent production issues by Ineos and Petrologistics.
December PGP bids were heard at 69 cents/lb to start the week, while refinery-grade product was heard bid at 64 cents/lb. Given recent market developments, some participants have talked of potential contract hikes as high as 12-14 cents/lb though no nominations were heard at time of publication.