Heavy snow raided European polyolefin transport blocked

From December 18th to the present, Europe has recorded a record heavy snowfall, which has caused delays or cancellations of flights and blocked roads. Affected by heavy snowfall, European countries have adopted regulation or diversion of transportation, which has hindered the transportation of products and raw materials of petrochemical enterprises. As products could not be sold, European polyolefin producers had to reduce production plant operating rates. Market analysts believe that the reduction in supply will push up the polyolefin market price.

Sources said on December 28 that severe weather has severely hindered the logistics of chemicals. The continued heavy snow in Europe has not only disrupted air transport, delayed trains, but also threatened major roads. Both the British Heathrow Airport and the German Frankfurt Airport have now been grounded.

The thickness of snow in the eastern part of Germany has set a record for a hundred years. Most of the expressways have been smashed, and trucks exceeding 7.5 tons are prohibited on some roads. A trader reluctantly stated that the quality of a truck transporting polyethylene would certainly exceed 22.5 tons, so the transportation task could only be cancelled. In addition, the specifications for the use of winter tyres formulated by countries in the European continent have also exacerbated traffic congestion to some extent. Countries set up checkpoints and impose penalties on vehicles that do not comply with regulations, resulting in a large number of cross-border transport vehicles being stranded.

As the transportation has been blocked, the products of European polyolefin manufacturers cannot be delivered to buyers in a timely manner, and the product backlog has forced manufacturers to reduce the operating rate. In Europe, polyethylene producers mainly include Borealis, Dow Chemicals, Ingredi, Lyondell Basel, Polimeri Europa, Saudi Basic Industries and Total Petrochemicals. Heavy snow continued, the device is likely to be forced to stop production. According to Ingredients, due to the severe cold weather, the company's 320,000 tons/year linear low density polyethylene plant in Grangemouth, England, has been suspended for a period of time and is now undergoing trial operation.

According to industry analysts, the suspension of equipment will further exacerbate the current tight supply of polyolefins in the international market. Prior to this, the supply of ethylene delivered by Iran and Saudi Arabia in the Middle East market in December has been nearly exhausted. A sudden stoppage of a cracker in Iran has resulted in extremely limited supply from the country. Due to the shortage of raw materials, a set of 770,000-ton/year ethylene glycol units in Saudi Arabia was postponed and restarted, and the supply of raw materials remained tense later. Experts predict that due to multiple factors, polyolefin prices will further increase.