14 June 2011 17:12 [Source: ICIS news]
LONDON (ICIS)-- Egypt’s Oriental Petrochemicals Co (OPC) has postponed the restart of its 160,000 tonne/year polypropylene (PP) facility by one week, a company source said on Tuesday without specifying the reason for the delay.
The facility, which was shut in the second half of May for an undisclosed reason, was due to be restarted by the middle of this week.
The plant had been running at reduced capacity due to a shortage of propylene supply from its primary provider in Libya, before it was shut down in May.
OPC, whose PP unit is located at the industrial zone in the northwest Gulf of Suez, is one of the two major producers of PP in Egypt.
OPC had posted a $40/tonne (€28/tonne) decrease of homopolymer Raffia PP in the domestic market last week, equivalent to about Egyptian pound (£E) 238/tonne, leaving domestic prices at £E 12,362/tonne ($2,095/tonne) ex-factory, including a 10% tax.
The prices were lowered with the hope of drawing buyers in.
“We hope demand will pick up soon,” said the company source, referring to seasonal heightened activity in the downstream markets immediately before Ramadan (the Muslim fasting season) which starts on 1 August. The market is expected to slow down when this begins.
The other major PP producer in Egypt is Egyptian Propylene and Polypropylene Co (EPPC), which is a 50:50 joint venture of OPC and E-chem and has a nameplate capacity of 400000 tonne/year.
($1=€0.69) ($1 =£E5.9)For more on polypropylene visit ICIS chemical intelligence
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