08 January 2010 03:01 [Source: ICIS news]
SINGAPORE (ICIS news)--Petrochemical giant Saudi Basic Industries Corp (SABIC) will significantly cut its January and February allocations of polyethylene (PE) and polypropylene (PP) to China and southeast Asia due to some production issues at its petrochemical facilities in Saudi Arabia, the company’s buyers said on Friday.
ICIS news tried to confirm this with SABIC but a company spokesperson could not yet provide an update.
“Our allocations of high density (PE) and linear low density PE (LLDPE) will be cut by 60-70% in January and February,” said a key buyer in ?xml:namespace>
SABIC was cutting supply because one of its crackers and the downstream PE and PP plants were shut in early January for maintenance that would last for 20-30 days, said some buyers.
Others thought the producer had to trim allocations because some of its plants were still unable to resume normal operations following a brief outage in December.
SABIC had said in a statement dated 22 December that its Yansab, Ibn Rushd and Yanpet facilities had been temporarily affected by the power outage caused by heavy rains and that it was working to restore normal operations.
It added that its supply commitments to customers would not be affected, based on the same statement.
With additional reporting by Peh Soo Hwee
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