By Malini Hariharan

It is not surprising to read that at a time when many producers around the world are cutting production, cost-advantaged producers in the Middle East will be maintaining operations at their polyethylene (PE) and polypropylene (PP) plants.

Producers in the region with access to cheap feedstockts are expected to run their plants at full for the rest of the year, writes Ong Sheau Ling on ICIS news.

Producers are instead cutting prices to move volumes, especially for polyethylene (PE), posing a big problem for high-cost producers in Asia.

Linear low density polyethylene (LLDPE) film of Saudi origin is reportedly being sold at $1,140-1,160/tonne CFR China, $20-40/tonne cheaper than South Korean product.

A weak home market has also not dampened producers’ enthusiasm. November polypropylene (PP) prices have fallen by around 7% in the Gulf Cooperation Council (GCC) market to match those in China.

This move on part of Middle East producers raises question on how quickly markets will return to balance. Unless there is a significant recovery in buying, especially in China, deeper cuts might be needed in Asia and elsewhere in the world.

PREVIOUS POST

Operating rate cuts the only option

03/11/2011

By Malini Hariharan News of operating rate cuts is pouring in. Crackers in Japan...

Learn more
NEXT POST

Latin America focused on new investments

07/11/2011

By Malini Hariharan The blog has been scanning ICIS news reports from the 31th L...

Learn more
More posts
Omicron, petchems and the developing world: we might get lucky this time, but maybe not next time
02/12/2021

By John Richardson UNTIL ALL of us are adequately vaccinated none of us are sufficiently protected i...

Read
Benzene, the need for a new global Industrial Revolution and the big challenges that lie ahead
30/11/2021

By John Richardson THE CHART BELOW shows that 60% of global benzene production in 2021-2040 is forec...

Read
Global polypropylene could also move from inflation to deflation in Q1 next year
23/11/2021

By John Richardson WE ALL NEED TO ASK ourselves whether the global patterns in polyethylene (PE) and...

Read
Global polyethylene could move from inflation to deflation by as early as Q1 2022
22/11/2021

By John Richardson THE BALTIC DRY INDEX, one of the excellent barometers of overall economic activit...

Read
As China coal shortages end, polyolefins margins reach historic lows on oversupply
17/11/2021

By John Richardson AGAIN, DON’T say I didn’t tell you. In my 11 October blog post, having talked...

Read
Dip in Chinese PP exports only temporary with Q1 2022 resurgence looking likely
15/11/2021

By John Richardson TRADE DATA when combined with price assessments, supply and demand estimates and ...

Read
Global polyethylene supply could lengthen, becoming a buyers’ market, sooner than many people think
12/11/2021

By John Richardson RARELY, IF EVER, have events felt so bafflingly complex in the global polyethylen...

Read
China could either see net imports of 63m tonnes in 2021-2031 or net exports of 18m tonnes!
09/11/2021

By John Richardson CONFUSED BY the above chart? Once again I certainly hope so, provided confusion i...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more