LyondellBasell Declares Force Majeure on European Polyolefins Supply Amid Iran Conflict

LyondellBasell has informed customers that it has declared force majeure on certain polyolefin supply obligations in Europe, according to a company notice dated March 9. The move comes amid escalating geopolitical tensions linked to the ongoing Iran conflict, which has disrupted global energy and petrochemical supply chains.

In the notice, Basell Sales & Marketing Company B.V. and Rotterdam Olefins & Polyolefins B.V. stated that the extraordinary and unforeseeable circumstances stemming from the conflict have materially affected their ability to continue business under previously agreed conditions.

The company cited severe disruptions in global logistics and petrochemical supply chains, including interference with maritime transport routes, upstream production interruptions, supplier constraints, and difficulties in securing essential feedstocks on reasonable commercial terms.

LyondellBasell also highlighted that the current market environment has been marked by extraordinary conditions and sharp increases in oil-derived raw material costs, making previously agreed contract or negotiated pricing no longer sustainable.

As a result, the producer stated that strict continuation of contractual performance in terms of both volumes and pricing cannot reasonably be expected under current circumstances.

For the duration of the situation, the company said that affected contractual obligations will be suspended, and available volumes may be limited or adjusted. Customer representatives will contact buyers to discuss potential commercial adjustments and available supply.

LyondellBasell added that it will provide further updates as the situation evolves or once normal operating conditions can be restored.

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