20 June 2012 10:00 [Source: ICIS news]
(recasts, clarifying eighth paragraph)
By Ong Sheau Ling
SINGAPORE (ICIS)--Polypropylene (PP) supply from the Middle East is likely to increase, as the recent sales volume seen in Asia and Europe have been low and import interest in Egypt has weakened because of a recent duty imposed, industry players said on Wednesday.
Middle East PP producers said they are facing a slow build-up in inventories with lower-than-expected buying activity in Asia and ?xml:namespace>
Asian and Middle Eastern converters are buying on a need-to basis, because of concerns that global economic growth may be derailed.
The eurozone debt crisis in particular weighed on buying sentiment, as
“Demand for [PP] resins has waned in
“Price competition is high in
Apart from the lower sales volume in
“With all these going on, it is really harder to sell July cargoes, unless our prices are attractive,” a Saudi PP maker said.
Most PP facilities in the GCC region are expected to run at close to full rate or at 100% in July following outages at a couple of PP plants in May and a completed scheduled turnaround at Advanced Petrochem Co’s (APC) 450,000 tonne/year PP unit in end-May.
“Having less demand and more production output, we have to do something to prevent our inventories [rising] out of hand,” another GCC-based PP producer said.
PP resins are used in applications such as food packaging, cement and agriculture bags, and in the automotive sector.
($1 = €0.79)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections