Iran PE may run on lower rates after floods

Iranian polyethylene (PE) production may be reduced after deadly floods in the country damaged a key ethylene pipeline.

The West Ethylene Pipeline (WEP), which runs from the Mideast Gulf port of Assaluyeh to Mahabad, supplies feedstock to a number of petrochemical plants in Iran.

Affected PE units are likely to run on lower rates for about two or three weeks.

Floods hit many parts of Iran last week, killing around 70 people and displacing thousands of others. Repair works for the WEP will start when water levels subside.

Iran is a key supplier of low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE) film into China, Turkey and India. The floods came just as Iranian producers resumed full production of their PE units after the long Nowruz holidays, which started in the middle of March.