Iran’s Mehr to resume HDPE film production at Asaluyeh by end June

24 June 2011 08:38  [Source: ICIS news]

SINGAPORE (ICIS)--Iran’s Mehr Petrochemical will switch the production at its 300,000 tonne/year high density polyethylene (HDPE) plant in Asaluyeh from blow moulding grade back to film grade by the end of June, a source close to the company said on Friday. 

Mehr began producing blow moulding grade in early May to make up for a shortfall in domestic supply.

Mehr, which is an active exporter of HDPE film to Asia, did not offer any exports of HDPE for May and June because of the company’s switch to producing blow moulding grade material.

Mehr’s return to producing film grade at its Assaluyeh plant is in line with the higher operating rates at HDPE facilities in Bandar Imam, the source said.

“The tentative date [to return] to the production of film grade is 26 June,” the source said.

The company is expected resume its exports to countries such as India and China in July, the source added.

Iranian imports of HDPE film have been negligible for the past two months in India, because of Mehr’s switch to producing blow moulding grade, local players said.

“As Mehr re-enters the market, the supply of HDPE film will increase and this may weigh down on the existing steady prices,” an Indian trader said.

Prices of HDPE film in India were discussed at $1,280-1,310/tonne (€896-917/tonne) CFR (cost & freight) Mumbai on 24 June, according to local sources.

Mehr Petrochemical’s HDPE plant is a joint venture between Thailand’s PTT Chemical and Siam Cement, Iran’s National Petrochemical Co (NPC) and Japan’s Itochu.

($1 = €0.70)

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By: Ong Sheau Ling
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