Qapco to raise East Med June ldPE offers by 4%

19 May 2006 07:06  [Source: ICIS news]

RIYADH (ICIS news)--Qatar Petrochemical Co (Qapco), the Middle East’s largest low-density polyethylene (ldPE) producer, plans to raise June offers for the East Mediterranean (East Med) by almost 4% compared to May, a company source said on Friday.

The company plans to increase prices by $40-50/tonne $1,360-1,370/tonne CFR due to tight supply, he added.

LdPE prices in the region have already touched a one-year high of $1,320-1,350/tonne. The last time prices were around this level in the East Med was in May 2005, when business was concluded at $1,310-1,360/tonne CFR.

The source said Qapco had sold cargoes to Syria at $1,350/tonne. A few 250-300 tonne cargoes were also sold to Lebanon at the same price. Deals for Egypt were at $1,320/tonne, he added.

Qapco plans to raise its ldPE offers for the Gulf Cooperation region (GCC) by $20/tonne for June from the current levels of $1,280-1,300/tonne CFR, the source said.

Supply was expected to remain tight in the Middle East, with Iran's Laleh Petrochemical postponing the start-up of its 300,000 tonne/year plant by two months to July.

Qapco has two plants, each with a capacity of 180,000 tonne/year, at Mesaieed, Qatar.

By: Prema Viswanathan
+65 6780 4359

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