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Several off grade homo-PP cargoes from Borouge III plant are reportedly showing up in China this week at relatively competitive levels, players in this market said on Tuesday. These parcels are now offered on auction basis, which is believed to have minimal impact on the current market situation. However, market participants are discussing about a possible increased supply for prime cargoes from the plant in the coming days as Borouge III ramp up its production rate.

Indeed, the world’s largest integrated petrochemical plant has been working to increase its operating rate since late 2015 and its only LDPE unit has offered prime cargoes to the market since early this year. Borouge III houses a 1.5 million ton/year ethane cracker, 350,000 ton/year LDPE unit, 1.08 million ton/year HDPE/LLDPE swing unit and 960,000 ton/year PP unit.

A market source commented, “We are taking cautious stance as it remain unsure on when prime cargoes from the new plant would arrive the market. Once it does, sentiment might be affected considering such large capacity the company own.”