SABIC cuts Europe PE output by 30-40%

26 November 2008 15:40  [Source: ICIS news]

 

By Linda Naylor

 

LONDON (ICIS news)--SABIC will cut back polyethylene (PE) output by 30-40% at its European assets in December as PE prices continue to slide, a company source said on Wednesday.

 

“December is going to be a very short month,” said a PE producer.

 

"Transformers will be closing early for Christmas and some factories are already running on short time."

 

Low density PE (LDPE) prices have slumped in November, with spot material falling more than €300/tonne ($390/tonne), to €680/tonne FD (free delivered) NWE (northwest Europe).

 

Other cutbacks were being planned throughout Europe, and one industry source estimated PE volumes to be down by as much as 15% compared with 2007, although there was no confirmation of such a drop yet.

 

SABIC (Saudi Basic Industries Corp) has the capacity to produce close to 1.5m tonnes/year of PE in Europe at its sites at Geleen in the Netherlands and Gelsenkirchen in Germany.

 

It produces LDPE, linear low density PE (LLDPE) and high density PE (HDPE).

 

PE producers in Europe include Saudi Basic Industries Corp (SABIC), ExxonMobil, LyondellBasell, Borealis, Total Petrochemicals, INEOS Polyolefins, Dow, Polimeri Europa and Repsol.

 

($1 = €0.77)

 

Click here to find out more on the European polyethylene margin report
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By: Linda Naylor
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