Petrochemical products in the Middle East are generally facing a trend of sufficient supply and weak demand, and this trend may continue throughout the summer. The market is largely affected by low buying sentiment;
this is mainly due to oversupply and slowing demand in the summer. Hot weather is a typical feature of summer in the Middle East, so summer is often the off-season in the market. Due to the tight supply of raw materials, after months of shortages, the supply is expected to increase with the slow recovery of production. In addition, there is hope for a nuclear agreement with Iran, so Iran’s exports are expected to increase in the coming months.
A group of base oils in the Middle East shows sufficient supply, and it is expected that the supply from Iran in the group will increase in the next few weeks. So far, among the base oil producers in the Middle East, in the second half of this year, the known downtime for maintenance is the least.
There were rumors in the market that an Iranian manufacturer would suspend production for maintenance, but this news could not be confirmed immediately. At the same time, the spot supply of the first and second groups is slowly improving.
For polymeric methylene diphenyl diisocyanate (PMDI) and toluene diisocyanate (TDI), it is expected that demand in the Middle East will remain moderate throughout the summer.
A similar situation has occurred in polyether polyols in the region. With the shortage of ships and increased freight from Northeast Asia to the Middle East, the demand for polyether polyols in the Middle East is still tepid.
Regarding PVC, trade between the Gulf Cooperation Council (GCC) and the Eastern Mediterranean is restricted because of the few available offers. In addition, infrastructure activities slowed down in the summer, and buying sentiment was not high.
Due to weaker demand than in previous years, it is expected that the oversupply of PVC in the Middle East will continue. Coupled with the off-season, the downstream operating rate will remain at a low level. PET in the Middle East bucked the trend.
The PET provided by GCC to this region is limited because the goods can obtain better net income in other regions of the Americas. However, due to stable downstream consumption, GCC is importing PET from Asia to meet its demand.
Post time: Jun-28-2021