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Southeast Asian players report PE supply issues from Middle East

by ChemOrbis Editorial Team -
  • 24/01/2017 (17:32)
Players operating in the Southeast Asian markets reported receiving less supply from Middle Eastern producers.

A trader in Singapore reported, “A Middle Eastern producer has limited allocation for LLDPE. We heard that it is because of some production problems.”

An Indonesian converter commented, “We purchased LLDPE film from a Middle Eastern producer at $1200/ton CIF, cash basis while we had no HDPE purchases as the producer has sold out already. Furthermore, a Saudi producer that we usually source around 200-300 tons gave only 50 tons to us this month. We think that there is a panic mood in the market due to outages and the upcoming maintenance shutdowns which cause higher offers to emerge in Southeast Asia.”

An agent of a Malaysian producer opined, “We cannot be certain about our supplier’s new offers considering the upcoming maintenances in the region and production issues reported from the Middle East.”

Southeast Asian PE players are nowadays following regional maintenances along with production news from the Middle East. Qatar’s Qapco is planning to shut their 500,000 tons/year HDPE, 650,000 tons/year LDPE (No 1, No 2 and No 3) and 500,000 tons/year LLDPE plants in sequence for maintenance between March and April for two weeks. Meanwhile, Saudi Sadara shut their three PE lines in line with the cracker on December 27, although the commissioning of the PE plants was not entirely completed before the shutdown. The company’s PE plant has a production capacity of 1.1 million tons/year. The shutdown is expected to last for 60 days.

To see further details about the most updated news of new capacities as well as shutdowns and restarts around the globe at a glance, please follow ChemOrbis PE Production news .
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