Iran’s Mehr Petchem to restart HDPE unit on 11 July after outage

02 July 2012 09:22  [Source: ICIS news]

HDPE can be extruded into pipes (Source: Borealis)SINGAPORE (ICIS)--Iran’s Mehr Petrochemical plans to restart its 300,000 tonne/year high density polyethylene (HPDE) plant at Asaluyeh on 11 July, following an unplanned shutdown that began on 30 June, a source close to the company said on Monday.

The plant was unexpectedly shut because of technical issues and repairs at the plant, which produces 7000F film-grade HDPE, may take only 10 days instead of the initial expectation of 14 days, depending on the progress of the maintenance, the source added.

June shipments will not be affected and July orders for most Chinese customers will proceed as planned despite the shutdown, he said.

“We have already allocated the quantities to China for July, so, our customers should receive our cargoes [in a] timely manner. At most, 1,000 tonnes of the total sales volume for July may be reduced because of this unplanned shutdown,” the source said.

A Shanghai-based trader that is a buyer of Mehr Petrochemical’s material provided confirmation, saying the cargo it purchased for July loading would be shipped on time.

Negotiations for customers based in the Middle East and Turkey have been put on hold because of the outage, according to the source close to Mehr Petrochemical.

“Mehr will resume offers to those regions, once the plant restarts,” he said, adding that it remains unclear whether August allocations will be cut.  

Market participants said they do not expect the brief shutdown to have a large impact on prices.

The producer shut its HDPE unit for one week of scheduled maintenance in mid-May.

Mehr Petrochemical is a joint venture between Thailand’s PTT Global Chemical – formerly known as PTT Chemical (PTTCH) – and Siam Cement, Iran’s National Petrochemical Co (NPC) and Japan’s ITOCHU.


By: Ong Sheau Ling
+65 6780 4359



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