ExxonMobil is limiting sales of all grades of polypropylene (PP) in the United States as severe winter weather has impacted the performance of its facilities in Texas and Louisiana, the company said in a letter to customers.
ExxonMobil said it is evaluating its PP supply capabilities and that the timing and volume of PP supplies are still being determined.
In a letter to buyers, the manufacturer said production facilities in Texas and Louisiana were experiencing interruptions due to freezing temperatures and frequent power outages. The capacity of the company’s site in Baton Rouge is 785 thousand tonnes of PP per year, in Baytown – 826 thousand tonnes of PP per year.
Earlier it was reported that ExxonMobil announced a 6 cents / lb (USD132 / t) increase in US polypropylene (PP) prices effective March 1, in addition to any previously announced price increases.
According to the ICIS-MRC Price Review, since the beginning of the year, PP in Russia has risen in price by more than 15%. And prices will continue to rise in the near future. Foreign markets exert serious pressure on PP prices in Russia, where polymer prices have hit new records in recent years.
Major polypropylene producers in the US include Braskem, ExxonMobil, Formosa, INEOS, LyondellBasell, Pinnacle Polymers, Phillips 66, and Total Petrochemicals.
Exxon Mobil Corporation is the largest US private oil company and one of the largest corporations by market capitalization in the world. The company produces oil in various regions of the world, including the USA, Canada, the Middle East, Azerbaijan, etc.