Egyptian HDPE and PVC producers plan maintenance shutdown in July

28-Jun-10

Egyptian HDPE producer SIDPEC is planning a 2-3 week maintenance shutdown in H2-July as per Chemorbis. In a bid to ease supply concerns in the market where high MI HDPE injection availability has been tight for some time, the producer has stock to meet the market’s needs for HDPE film and blow moulding until the beginning of August. However, SIDPEC has not been able to produce high MI HDPE injection as they faced a problem when shifting their production from low MI grade to high MI. The producer had been trying to solve the problem during mid-June due to the tightness. Despite SIDPEC’s hopes to be able to resume their high MI HDPE injection production before their maintenance starts, a couple of traders started reporting that the producer is now facing issues on their low MI HDPE injection production as well. They highlight that SIDPEC has only been delivering limited quantities of low MI grade to the market following their most recent price cut. Egypt’s PVC producer EPC is also planning a 15 day maintenance shutdown, starting 15th of July. Since feedstock ethylene is sourced for the PVC plant from SIDPEC, EPC has decided to halt their operations at the same time with their supplier. EPC feels confident that their sales will not be affected by the shutdown.