Saudi Yanbu Crude Loadings Remain Stalled Despite Pipeline Restart

Crude oil flow through Saudi Arabia's pipeline to refineries on the Red Sea coast has resumed, yet crude loadings at Yanbu remain stalled. This disruption is significant for feedstock logistics, potentially constraining or delaying regional polymer supply, particularly affecting polyolefins such as PP, HDPE, LLDPE, and LDPE.

The situation adds a layer of bullish cost and supply risk for polyolefins, although specific price assessments remain undisclosed. The geopolitical tensions in the Middle East, including the US-Iran conflict, have already driven up prices for several polyethylene (PE) and polypropylene (PP) grades, as reported by Argus Media. Indian importers are particularly cautious, slowing their purchases due to higher Brent crude values and uncertain delivery schedules.

In response to these challenges, Indian polyolefin buyers have shifted towards domestic suppliers, encouraged by the reintroduction of import duties and increased domestic production rates. Major Indian producers have raised LLDPE and PP raffia prices significantly due to higher crude prices and reduced import bookings. If import levels remain low, supply could tighten by late August as demand rises ahead of India's festive season.

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