Petrochemical producer Formosa Plastics USA's 675,000 mt/year high density polyethylene film unit will shut down for maintenance from July to early September, sources said June 11.
Formosa Plastics spokesman Fred Neske declined to comment on the company's "operational issues or plant status."
The unit will be shut, limiting available spot export supply for film resin, sources said.
Separately, market participants said the petrochemical company has scheduled the 200,000 mt/year HDPE blowmolding unit for a turnaround in October 2020. An LLDPE unit will resume production of LLDPE butene in July in response to a shortage of LLDPE hexene.
After domestic contracts rolled over in June, US producers began pushing for 4 cents/lb increases for all grades of polyethylene.
Domestic contracts were stable on the week and Platts assessed at 44-45 cents/lb ($970.02 -$992.07/mt) for HDPE blowmolding and 49-50 cents/lb ($1,080.25-$1,102.30/mt) for HDPE film delivered railcar basis. LLDPE contracts were unchanged on the week and assessed at 43.50-44.50 cents/lb ($959-$981.05/mt) delivered on a rail-car basis, as contracts are at a rollover for June, sources said.
