27 April 2011 13:07 [Source: ICIS news]
SINGAPORE (ICIS)--Demand for polyolefins in some parts of the Middle East is expected to remain sluggish next month despite a rollover in May offers amid ongoing political unrest in the region, market sources said on Wednesday.
Business has waned significantly in ?xml:namespace>
Polymer consumption has also slowed down in
A key Saudi Arabia-based major issued offers for linear low density polyethylene (LLDPE) at $1,540/tonne (€1,047/tonne) DEL (delivered) East Med (east Mediterranean), low density polyethylene (LDPE) at $1,840–1,860/tonne DEL, high density polyethylene (HDPE) film at $1,540/tonne DEL and HDPE blowmoulding at $1,550–1,560/tonne DEL.
The recent closure of the Jordan-Syria border has also had a negative effect on demand, as cargoes from Gulf Cooperation Council (GCC) countries can no longer enter
“April parcels will not be affected. But if the situation is prolonged, we can’t dispatch our May cargoes,” the source with the key Saudi major said.
A trader active in
Converters in Egypt are not actively seeking new material, as they are still running at reduced rates. Business is expected to return to normal levels only after presidential and parliamentary elections are held in Egypt later this year, according to market sources in the region.
Another Saudi polyolefins producer said: “In
Regarding PP, the lack of local material resulting from poor operating rates at Oriental Petrochemicals Co's plant – which is the sole producer of PP in Egypt – has forced converters to source alternatives from abroad.
In 2010, PE consumption in
“It remains unclear how much these countries in east Med will grow this year. We can only hope that the consumption will remain unchanged, without a repeat of the economic downturn in 2008,” a GCC-based polyolefins maker said.
($1 = €0.68)
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