Saudi producer skips October PE offerings to SEA on supply issues

In an official email to its customers in Southeast Asia market, a major Saudi Arabia producer informed that the company decided to skip all PE offerings to the region for October shipment due to a plant issue that forced the company to lower operation rates significantly. 

The producers added that cargoes for September shipment might face some delays as a result, and customers have not settled the LC would receive a separate confirmation.

Eastern Petrochemical Company (SHARQ) is an affiliate of Saudi Basic Industries Corporation (SABIC), based in Al-Jubail, Saudi Arabia. As reported earlier, SABIC faces serious feedstock disruption during mid of September following a drone attack targeted Saudi Aramco oil facilities. Though feedstock supply is gradually coming back to normal, many affected producers have informed respective customers about a potential delay in shipments.    

SHARQ operates an HDPE line with an annual capacity of 400,000 tons/year and three LLDPE lines with a combined output of 1,180,000 tons/year.