The blockade on Qatar, imposed in mid-2017, has disrupted the supply of products such as polymers with the country representing 2% of global polyethylene (PE) supply. Qatar's PE supplies to the GCC and Egypt amount to just under 100,000tpa, which can be easily replaced by production elsewhere in the region. As such, cuts in Qatari supplies are likely to have a greater impact on Dubai's port than in regional markets, but on a global level will affect international trade flows in petrochemicals and polymers. While there is little incentive in the GCC and Egypt to lift the blockade, it has caused complications for the EDC-VCM-PVC chain as well as supplies of ethylene, PE and methanol in addition to gas supplies, particularly to India. However, these complications are now being worked around and the negative impact of the trade blockade has receded. As such, Qatar's sour relations with some regional neighbours will not hinder petrochemicals trade unless unexpected events lead to a further deterioration in geopolitical risk.

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