PetroRabigh shutdown pressures PE prices higher

Polyethylene (PE) prices in Asia are under upwards pressure from a scheduled shutdown of Saudi Arabia's PetroRabigh starting next month that will curb its downstream polymers output.

Asian PE prices increased last week. China's linear low-density polyethylene (LLDPE) prices were at $850-880/t on 16 January, up by $10/t from the previous week, according to Argus. High-density polyethylene (HDPE) prices were at $860-900/t, also up by $10/t for the same period.

PetroRabigh's 400,000 b/d refinery will start maintenance on 24 February until 9 April, while its PE units will be affected around the same period. Petrorabigh operates a 600,000 t/yr LLDPE/HDPE swing line, a 300,000 t/yr HDPE unit and a 160,000 t/yr LDPE unit.

PetroRabigh is a joint venture between state-owned Saudi Aramco and Japanese trading house Sumitomo.

By Muhamad Fadhil