Propylene Oxide & Derivatives – Force Majeure Event Oct 9, 2020

In Pricing by PattyH

Per the previous letter dated October 7, 2020, Lyondell Chemical Company declared a force majeure event for all products within our Americas PO & derivatives portfolio – PO, P-Glycols, Allyl Alcohol, BDO & Derivatives, P-Series Glycol ethers and P-Specialties glycol ethers, effective October 7, 2020.

As a result of this event, for the foreseeable future, Lyondell Chemical Company is implementing a sales allocation for Propylene Glycol, whereby customer’s monthly orders will be allocated to 70% of customer’s average monthly purchases for the previous 9 months ( January – September 2020). Orders already placed and shipped in the month of October 2020 will count toward this allocation.

Grades of propylene glycol included in this allocation are as follows:
• Propylene Glycol Industrial Grade (PGI)
• Propylene Glycol USP/EP Grade (PG USP/EP)
• Di-Propylene Glycol Industrial Grade (DPGI)
• Di-Propylene Glycol Fragrance Grade (DPGF)
• Tri-Propylene Glycol (TPG)
• Tri-Propylene Glycol Acrylate Grade (TPGA)

Please note that during the period of allocation, customers will not be permitted to borrow ahead of their monthly amounts and unused portions of monthly amounts cannot be added to any subsequent month’s amounts. Additionally, allocations are subject to third party carrier availability and other logistical infrastructure limitations, including, but not limited to, railcar, tank truck, barge/vessel, and port availability, which may impact Product availability and delivery dates. The duration of the force majeure event cannot be determined at this time and the percentage of allocation may change as new information becomes available.

Click here to see the official announcement.

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