West Lake Chemical lifts the force majeure of American PVC

Westlake announced in a May 17 letter to customers that it had lifted force majeure on U.
S.
PVC and upstream vinyl chloride monomer
.

The company officially lifted the system-wide force majeure conditions for PVC and vinyl chloride monomer produced and shipped in North America from February 19 due to the deep freeze that "caused plant shutdowns/reductions," according to the letter
.

The winter storm brought persistent cold weather to the U.
S.
Gulf Coast and much of the U.
S.
, forcing widespread shutdowns at petrochemical companies, including at least 57% of U.
S.
PVC capacity
.

U.
S.
PVC supplies were already tight in early 2021, as Westlake Chemical just recovered from two hurricanes in 2020, and Formosa Plastics U.
S.
experienced a production squeeze on operational issues
.

The freeze further tightened supply, pushing export prices to $1,800/t FAS Houston at the end of March, the highest level since S&P began assessing the market in 1983
.
Prices have since retreated by $50/t, last assessed on May 12 at $1,750/t FAS
.

Domestic PVC prices also reached 85-87 cents/lb ($1,874-1,918/t) at the end of April, the highest level since Platts began assessing the market in 2001
.

Since the freeze, producers have struggled to clear backlogs and replenish inventories
.
The force majeure declared by OxyChem, the chemical arm of Occidental Petroleum, and Formosa Plastics USA since the week of February 15, remains in effect on May 17
.