20 January 2012 06:36 [Source: ICIS news]
By Chow Bee Lin
“Al-Jubail is a very important area for PE and PP,” a major China-based trader said referring to the industrial site which is a major source of supply to Chinese and southeast Asian markets.
All the PE and PP plants in Al-Jubail were shut late evening on 19 January but it was not known how many of those plants have resumed production.
Trading activity was slow in China and many parts of southeast Asia on Friday because of the upcoming Lunar New Year holiday, but discussion levels are expected to rise when the markets regain momentum after the holiday.
Any shortfall in
Suppliers are expected to raise their price offers for Middle East PP homopolymer grades to at least $1,350/tonne (€1,040/tonne) CFR (cost and freight)
Middle East PP homopolymers were offered at $1,330/tonne CFR China and $1,350/tonne CFR SE Asia before news of the Al-Jubail plant outages emerged, they said.
Film grade linear low density PE (LLDPE) and high density polyethylene (HDPE) from the Middle East were offered at $1,220/tonne and in the low to mid-$1,300s/tonne, on a CFR China and
Price offers for these film grades PE are expected to rise by at least $20-30/tonne in the coming weeks if the plants in Al-Jubail do not resume production shortly, they added.
Key exporters of PE and PP to
Additional reporting by Amy Yu, Belle Huo
($1 = €0.77)
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