Saudi Arabian state-controlled polyethylene (PE) producer Sabic has said five of its plants have been certified to be compliant with the Bureau of Indian Standards (BIS) quality control requirements.
The producer said PE cargoes from its Saudi-based plants Petrokemya, Yansab, Yanpet, Sharq and Saudi Kayan will be packed in bags bearing the BIS standard mark along with the corresponding license number, according to a 30 August letter sent to its Indian customers seen by Argus.
Market participants are anticipating the implementation of BIS quality controls on PE imports on 3 October. The imposition of BIS quality controls were first announced in early 2021 with the deadline set for October 2021. But the deadline has since been postponed four times because of complications arising from Covid-19. BIS also this month announced similar quality controls for polypropylene and polyvinyl chloride.
Other producers in the Middle East, northeast Asia (excluding China) and southeast Asia have also been BIS certified, according to market participants. Some producers are pending audit checks in September. Others have had their audit checks done and are waiting for their licenses to be issued.
Market participants were initially unsure if producers in the US and Europe were open to obtain BIS certifications as it would require plant inspections and sample tests by BIS officials. These producers were initially concerned that their intellectual property could be leaked. But some producers have since applied for BIS certifications. Audits have yet to be conducted as BIS officials were unable to obtain the necessary visas. Arrangements are being made to appoint third party inspectors to carry out the necessary checks, according to market participants. Resin samples from these plants will be sent to BIS' labs in India for further testing.
Another concern that producers raised is the printing of BIS logos on bags that contain the PE resin, as key producers export their PE globally. They are concerned that printing the BIS logo could cause concerns for other markets, as other countries could start to demand that their own quality control logos should be printed on these bags as well. Some producers are arranging dedicated bagging lines for bags destined for India.
Import offers of PE cargoes for September shipment in India have been limited. Producers that have yet to be certified are concerned that cargoes could be seized at Indian ports if they do not attain the necessary certifications.
