Brazilian petrochemicals producer Braskem declared force majeure on polypropylene supply in Europe because low water levels on the Rhine are disrupting feedstock deliveries to its German operations. The declaration took effect on October 13.
Braskem said the measure was precautionary because feedstock shortages will soon start to impact production planning and inventory replenishment. The company intends to fulfil confirmed purchase orders, though deliveries could be delayed.
Braskem operates PP plants in Germany with capacities of 255,000 t/yr in Cologne and 365,000 t/yr in Schkopau, and sources feedstock from third-party suppliers.
Market participants said the declaration had little immediate impact on PP prices, as weak demand continues to outweigh supply concerns despite reduced imports from the Middle East and Asia-Pacific.
Buyers continue to purchase hand-to-mouth while keeping inventories low ahead of year-end.
