03 November 2009 05:37 [Source: ICIS news]
By Prema Viswanathan
SINGAPORE (ICIS news)--Iran’s exports of polyethylene (PE) and polypropylene (PP) to Pakistan are set to double year-on-year in 2009 to 64,000 tonnes, and surge 17% to 75,000 tonnes in 2010, industry sources said on Tuesday.
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“The sharp increase in imports of Iranian cargoes into
The share of Iranian cargoes in total shipments from the
Polyolefins imports from the rest of the
The delay in Iranian shipments due to diversion of cargoes through Jebel Ali port in the
“But lately, the supply problems have been mitigating, or been offset by discounts offered by Iranian suppliers,” the trader said.
Quality concerns about Iranian material, which used to be considered below par compared with the rest of the Middle East cargoes, have also dissipated with the start-up of new plants in
Despite the surge in Iranian exports to
Pakistan’s imports of Saudi Arabian PE and PP were expected to rise by around 8% to 168,000 tonnes in 2009, due largely to the start-up of new plants in late 2008 and 2009 such as NatPet PP, Advanced Polypropylene Co, Saudi Ethylene and Polyethylene Co, a second trader said.
“With Petro Rabigh, Al Waha Petrochemical and Yansab also stabilising operations at their complexes, we expect imports from
However, worries over an erosion of demand, given the energy crisis, security situation, and liquidity squeeze in Pakistan, could upset these projections, traders and end users cautioned.
“Our operating rates have been hit by persistent power cuts this year, prompting us to hold back from purchasing large volumes of polymers,” said a PE converter.
Credit curbs by Pakistani banks have also deterred end users from holding high inventories of raw material, said a PP converter.
Adding to these problems were concerns that the ongoing terror attacks could destabilise the economy and cause demand growth to slow, he added.
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