Middle East, Asia PE supply tightens on problem at Borouge plant

17 February 2011 09:28  [Source: ICIS news]

Borouge site in Ruwais, Abu Dhabi, UAE SINGAPORE (ICIS)--Borouge’s polyethylene (PE) plant in Ruwais, Abu Dhabi, is facing production hiccups, causing supply of certain PE grades to tighten in the Middle East and Asian markets, market sources said on Thursday.

“Production at the PE facility is very unstable, so the company has little export availability for February and March,” a source said.

The source did not disclose the reasons behind the production problem. Company officials were not available for comment.

Supply of high-end grades such as PE pipe has tightened in the Middle East and south Asia as a result of the reduced production at the Borouge facility, traders and end-users said.

Borouge doubled its production of PE to 1.2m tonnes/year in October 2010.

The company's new 800,000 tonne/year polypropylene (PP) plant at Ruwais is running normally, the source added.

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By: Prema Viswanathan
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