Players: Iranian PE appears to be tight in Asia market

According to market sources, Iranian PE cargoes are less available in Asian market recently, which players attributed to some production issues and the suppliers’ effort to expand market presence to other region.

Chinese traders are complaining about allocation cut, especially for LDPE and LLDPE film from principal Iranian supplier with a source said, “Our Iranian principal supplier is paying more attention to European market after sanctions were lifted. We are still able to secure some HDPE cargoes, however, LDPE and LLDPE is rather limited, and even contract prices have increased.” 

Besides, it is reported that Mehr Petrochemical Company has not been able to restart its 300,000 tons/year HDPE line after some unexpected technical issues took place since early October 2016. The company plans to bring the unit on-stream within this week.

Meanwhile, an international trader added, “Our allocation for Iranian PE to Southeast Asia market has reduced by 45-50% compared to previously. We are holding firm on our LDPE film cargoes at $1300/ton CIF Vietnam, LC AS term, but buying interest is not very strong. We think with such allocation cut and healthy demand in China, market might be able to sustain the stable to firm trend in the near term.”

Iran is top HDPE exporter to China and with the international sanctions being lifted earlier this year, the country is looking to regain its market share in the petrochemical industry.