Middle East Urethane Update
Middle East petrochemical demand outpaces supply amid turnarounds
Author: Felicia Loo
SINGAPORE (ICIS)–The Middle East continues to face supply constraints of several petrochemical products due in part to plant shutdowns in exporting regions, while firm demand prevails.
On base oil, Iranian producers carried on selling limited spot supply through tenders.
The UAE – the main trading hub in the Middle East – is facing a lack of spot cargoes.
Compounding the situation, supply constraints in the European base oils export market are set to continue until at least December, as refineries remain sold out of heavier grades.
Demand, on the other hand, is seen stable-to-firm in the next two months.
On polymeric methylene diphenyl diisocyanate (PMDI), tight supply constraints persisted in the Middle East owing to plant turnarounds in Asia and a dearth of offers from Europe.
In addition, upholding the PMDI market are strong upstream feedstock benzene prices.
Such factors overshadowed the fact of limited downstream demand and a weak construction sector in the Middle East.
On toluene diisocyanate (TDI), downstream demand for flexible foams used in mattresses, cushions and automobile seat covers held firm.
However, the shortage in co-feedstock polyol supply meant that most buyers were not keen to procure fresh TDI cargoes.« Previous Post Next Post »