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Wednesday, August 26, 2009

Sidpec Restarts HDPE Unit but Delays Commercial Output

LONDON (ICIS news)--Egypt’s Sidi Kerir Petrochemicals Co (Sidpec) has restarted its high density polyethylene (HDPE) blow-moulding production line but will not begin commercial production until the end of the month due to difficulties with the restart, a source close to the company said on Tuesday.

“Following last week’s failed restart, the unit is now back up but will not return to full capacity [and commercial production] until the end of the month,” the source said.

The production line at the 150,000 tonne/year facility at Ameriya, Egypt, had been down for scheduled maintenance, which began on 16 July and was expected to last for around one month.

Production of HDPE injection and film was running successfully, the source added.

HDPE availability continued to be short in Egypt, but demand had fallen since the start of the Ramadan holy month.

Demand and prices for HDPE during the two weeks before Ramadan were high as availability then was also short, according to one source.

HDPE prices in northern Africa are currently assessed at $1,250-1,300/tonne CFR (€875-910/tonne) (cost and freight).

Egyptian sellers said that they had sold material as high as $2,000 CFR Egypt due to the tight supply in the country. This, however, was unconfirmed on the buy side.


quoted from: ICIS.com

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