Demand for PP finished products weaken in Middle East

DUBAI (ICIS)–Demand for polypropylene (PP) finished products is weakening in the Middle East, leading to more cautious procurement of resins, industry sources said on Tuesday.

PP downstream demand weakened significantly after the Muslim fasting month of Ramadan in June and festival of Eid-ul-Fitr in end July, the sources added.

“There is no more festive demand and buying is slow,” according to a Dubai-based end-user.

Downstream demand ahead of the Muslim festival of Eid-ul-Adha in early October is expected to be sluggish, the sources said.

Most PP convertors said they are keeping adequate stocks and are not in any rush to buy new material.

Due to the sluggish demand, a number of PP suppliers announced a price rollover for September for the homopolymer and copolymer grades.

Supply of PP is expected to remain tight amid a shutdown of a 340,000 tonne/year PP plant operated by Oman Oil Refineries and Petroleum Industries (Orpic) in Sohar.