Supreme Petrochem declares FM on polystyrene exports, disruption caused by Mumbai Port closure

13-Aug-10

India’s number one polystyrene maker-Supreme Petrochem, has declared force majeure for its exports after Mumbai port was closed due to collision of two ships. As per Platts, up to 100 containers of polystyrene targeted for export markets remain stranded at the port. This backlog of cargo will take 2-3 weeks to clear from the port. Though the port is expected to reopen this week, priority will be given to facilitating imports of essential fuel oil and coal for the state of Maharashtra's power generation requirements. Transfer of PS export shipments is being considered to Kandla port or Mundra port in the event of further delays from Mumbai. Kandla is at a distance of 800 km from Mumbai and Mundra is 400 km away, hence, surface transfer of cargo will result in time delay as well as further transportation costs. Supreme operates a 272,00 tpa polystyrene plant at Nagothane comprising three lines with about 90,000 tpa capacity each.