Supply concerns dominate Egypt’s PP market
In the local market, a source from one of the local PP producers OPC reported that their planned maintenance will take place in April. Regarding the current status of their production, the source added that their propylene supplies have not been affected by the incident at ADNOC on January 12 as they are able to procure propylene from alternative sources.
The supply limitation from the producer is also confirmed by some Turkish players who claimed that the producer will not be able to allocate export quotas to Turkey at least until the end of May.
“The overall market sentiment is weak amidst liquidity problems and poor demand. However, we expect the firm trend to remain in place until April,” opined a trader.
A manufacturer said demand is slow; however, they are expecting it to pick up within the upcoming days before Ramadan. Another converter also confirmed that supplies are tight locally, but the shortage has not been felt yet due to poor buying interest.
Looking at the current ad the planned production cuts in the Middle East, Borouge has been experiencing a shutdown at its plant since mid-January following the ADNOC incident while Saudi Arabia’s National Petrochemical Industrial Company (NATPET) and Al-Waha Petrochemical are preparing for a turnaround in the March-April period, according to market sources.
Players in different regions including China, Southeast Asia, Turkey and the Middle East are also reporting limited allocations from PetroRabigh following the restart at the producer’s complex in late January.
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