Egypt's OPC runs PP unit at 80% on lack of propylene from Libya

SINGAPORE (ICIS)--Egypt's Oriental Petrochemicals Co. (OPC) is running its polypropylene (PP) plant at an operating rate of about 80% because propylene supply from Libya has ceased, a company source said on Wednesday.

OPC is Egypt’s sole PP maker and its 160,000 tonne/year unit is located at the industrial zone in the northwest Gulf of Suez.

Libya has stopped supplying feedstock propylene as a result of ongoing political tension in the country.

“We have another supplier from Europe, while finding more alternative sources,” the source said.

“High propylene prices in Europe are also squeezing our margins amid sluggish local demand,” he added.

Domestic PP raffia prices were heard at Egyptian pound (£E) 11,160/tonne ($1872.5/tonne) ex-factory. On a CFR (cost & freight) Egypt basis, discussions were heard for April shipments at $1,750-1,800/tonne for the GCC (Gulf Cooperation Council) region.

($1= £E5.96, $1 = €0.69)

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