Sadara Chemical Company has declared a force majeure on LDPE supplies from its Al Jubail plant following a fire incident in early July 2025. The company reported the site fire mid-month, prompting a temporary halt in operations, though the duration of the disruption remains unspecified.
Located in Al Jubail, Saudi Arabia, this LDPE unit supports an annual production capacity of approximately 350,000 mt. The force majeure declaration is expected to impact not only Sadara’s domestic deliveries but also the broader polyethylene supply chain across the Middle East, with potential implications for pricing and contract availability. As downstream buyers seek alternative sourcing options, short-term premium pricing is likely.
Market observers emphasize the ripple effects this supply interruption may have on global LDPE flows. In the absence of clarity on Sadara’s restart timeline, stakeholders are advised to monitor official updates on repairs and output restoration. The incident serves as a reminder of the fragility within integrated petrochemical operations and the importance of contingency planning in polyethylene procurement.
