25 July 2008 07:54 [Source: ICIS news]
SINGAPORE (ICIS news)--Saudi Arabia's Eastern Petrochemical (Sharq) shut down one of its two linear low density polyethylene (LLDPE) lines at Al-Jubail on 23 July, a source close to the company said on Friday.
The combined capacity of the two lines is 750,000 tonnes/year.
No information was available on the cause or duration of the outage. "We do not have any details about the shutdown currently," the source said.
Sharq officials were not immediately available for comment, as Friday and Saturday are holidays in Saudi Arabia.
The outage had aggravated the tight supply situation for LLDPE in the Middle East, traders said.
One Middle East supplier was heard to have offered no LLDPE into the Indian market for August, while another supplier was heard to have raised its LLDPE offers into India for August by $40/tonne from July levels, to $1,880-1,890/tonne CFR (cost and freight) India.
The shutdown could result in surplus ethylene from Saudi Arabia being offered into the southeast (SE) Asian market, a trader said.
Sharq, a 50:50 joint venture of Saudi Basic Industries Corp (SABIC) and SPDC, a Japanese consortium headed by Mitsubishi Corp and Mitsubishi Chemical, also operates a 1.3m tonne/year cracker at Al-Jubail.Peh Soo Hwee contributed to this story
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