Saudi-origin polyethylene (PE) and polypropylene (PP) cargoes are currently stuck in Jordan because of the conflict between Israel and Palestinian militant group Hamas in Gaza.
The cargoes are unable to make their way into Israel as Tel Aviv has closed all border crossings and entrances between Jordan and Israel following Hamas' attack on Israel on 7 October. The King Hussein Bridge, a major highway for freight and passenger traffic connecting the Palestinian-occupied West Bank to Jordan, was closed on 10 October following a request from Tel Aviv.
PE and PP cargoes delivered by truck to Israel from Saudi Arabia through Jordan are now stranded in Jordan. These cargoes are mainly PP homopolymer, PP co-polymer, high-density PE and linear low-density PE. Jordanian buyers also saw higher volumes of cargoes flowing into Jordan this month, prior to the conflict. The higher inflow and restricted outflow of PE and PP cargoes has put pressure on inventories in Jordan.
It remains unclear if these cargoes will be left in Jordan to be offered to Jordanian buyers for November deliveries, or transported back to Saudi Arabia for Saudi producers to divert to other regions.
Downstream activity in Jordan has been muted since the conflict began. Jordanian converters are currently trying to deplete their inventories aggressively as the conflict between Israel and Hamas has also sparked unrest in Jordan. Protests broke out outside the Israeli embassy in Jordan this week following a deadly explosion at a hospital in Gaza.
The unrest is keeping Jordanian converters cautious, with many looking to reduce operating rates or shut their factories entirely for safety reasons. Demand in the Levant region for November PE and PP shipments will likely remain muted. Sellers have already noted a drop in sales to the region this month because of the conflict.
