Cylone-hit Oman Polypropylene resumes deliveries

28 June 2007 07:56  [Source: ICIS news]

SINGAPORE (ICIS news)--Normal deliveries of polypropylene (PP) from Oman Polypropylene’s plant have resumed following the two-week disruption caused by cyclone Gonu, traders and end-users in Asia and the Middle East said on Thursday.

The damage to the Sohar, Oman plant’s infrastructure caused the 340,000 tonne/year PP unit to remain partially shut for repairs until 23 June, a source close to the company said. Company officials were not available for comment.

“The disruption had led to a backlog of orders, which Oman Polypropylene is now slowly trying to clear,” a customer said.

The disruption aggravated the tight supply situation in the Middle East, prompting regional producers to raise their PP offers for July shipment by $30/tonne from their offers for June to $1,390-1,410/tonne DEL (delivered) in the Gulf Cooperation Council (GCC) region and $1,410/tonne DEL in the East Mediterranean region for raffia and injection grades.

Film and fibre grade offers were $20/tonne higher.

Offers to Pakistan from Middle East suppliers were at $1,370/tonne CFR for raffia and injection grades and at $1,390/tonne CFR for film and fibre grades, up from $1,300/tonne CFR Pakistan and $1,315/tonne respectively in late May. 

Most of the offers were heard to have been snapped up by customers. 

Oman Polypropylene is owned by Oman Oil (40%), LG International (20%), Gulf Investment (20%) and International Petroleum Investment (20%).

By: Prema Viswanathan
+65 6780 4359

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