Saudi Arabia's Yansab, an affiliate of state-owned petrochemical producer Sabic, will begin a 10-15 day turnaround at its high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE) plants in Yanbu on 5 February.
The plants have a capacity of 400,000 t/yr each. The turnaround includes Yansab's 400,000 t/yr polypropylene plant.
Polyethylene (PE) supplies in the Middle East are expected to lengthen in the coming months, with Oman's state-owned OQ expected to start up its 880,000 t/yr HDPE/LLDPE swing plant in the first quarter of 2021. OQ had put out requests for ethylene shipments at Oman's Sohar port at the beginning of January in preparation for the start-up of the swing plant.
PE demand has been firm in the Middle East. But producers in export markets have been looking to other regions for higher netbacks because of softening demand in China and southeast Asia ahead of the lunar new year holiday and shipping issues as a result of limited vessel space and container shortages.
Middle East petrochemical producers are expected to announce their offers for the region early next week. Buyers have been cautious in recent months as prices have increased by $80/t and $70/t, respectively, for HDPE film and LLDPE film between December 2020 and January 2021.
Argus last assessed Middle East prices for LLDPE film and HDPE film at $1,100-1,120/t del Middle East and $1,120-1,140/t del Middle East, respectively, yesterday.