The existing tight propylene supply scenario in Europe has got compounded with another shutdown in the region. The latest FM declaration further reduces the already tight European supply of C3. Technical problems have cause production glitches, compelling Shell Chemicals to declare force majeure (FM) on propylene deliveries from its cracker at Moerdijk, Netherlands. Output from the 900,000 tpa C2 facility and 500,000 tpa C3 facility has had to be severely restricted along with acetylene supplies. Normal supply is not expected to be resumed before the end of September.
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