LINZ, Austria (ICIS)--Polyolefins producer Borouge is starting to feel the heat from US competitors sending material to Asia, causing ups and down in prices which the Abu Dhabi producer is trying to weather, an executive at the joint venture said on Tuesday.
Michael Pell, senior vice president for marketing at Borouge, conceded US producers are in “push mode” trying to aggressively place their product in Asian markets.
Borouge is an Abu Dhabi-based joint venture between the emirate’s crude oil major ADNOC and Austria’s polyolefins and fertilizers producer Borealis.
Pell was speaking at Borealis’ facilities in Linz, Austria.
“We are seeing the challenge of US producers on push mode with their product … [This is a] Challenge which causes large spikes in the supply and demand balance,” said Pell.
As a result of the shale gas boom in the US, large capacities for polyethylene (PE) and, to a lesser extent, for polypropylene (PP) have started up or are in the process to do so in that country.
The markets are expected to be oversupplied for some time, according to analysts.
Picture: Borouge petrochemical complex in