LyondellBasell is reportingly will be idling its production of low density polyethylene (LDPE) units at France and UK. The Carrington unit in the UK has a nameplate capacity of 185,000 tonnes/year, and France's Fos plant has a nameplate capacity of 110,000 tonnes/year of LDPE.
The news comes in the midsts of demand for polyethylene has significantly improved compared to the fourth quarter of 2008 however the idling is due to demand still not within normal patterns especially in Europe.
Analysts believe that the production cut is more due to extremely steep ethylene contract prices in the market which is the major feedstock for LDPE production.
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