Middle East LDPE supply to increase by 30% in H2 2012

16 February 2012 05:54  [Source: ICIS news]

SINGAPORE (ICIS)--Low density polyethylene (LDPE) supply in the Middle East will increase by 30% in the second half of this year as a result of the start up of two new LDPE plants in the Gulf Cooperation Council (GCC) region, industry sources said on Thursday.

The two new LDPE plants will add 600,000 tonnes/year to take the total nameplate capacity of the Middle East to 2.67m tonnes, they added.

Qatar Petrochemical Co (QAPCO) plans to start up its 300,000 tonne/year LDPE plant, LDPE-3, at Mesaieed in Qatar in the second quarter, sources close to the company said.

Saudi Kayan Petrochemical will start up its Al Jubail-based 300,000 tonne/year LDPE plant in the middle of this year, a source close to the company said.

SABIC owns 35% of Saudi Kayan, with 20% owned by Al-Kayan Petrochemical and 45% by public shareholders.

Both producers are inclined to export a portion of its newly-added supply to regions such as Asia.

This significant addition of LDPE supply will likely exert pressure of prices later this year, LDPE producers said.

“We may see a disconnect between LLDPE (linear low density PE) and LDPE price correlation as a result,” a Saudi LDPE maker said.

LDPE film prices are traditionally higher than LLDPE film prices.

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections


By: Ong Sheau Ling
+65 6780 4359



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