Home / Knowledge / News / Textiles / Global economic uncertainty impacts Saudi petchem sector
Global economic uncertainty impacts Saudi petchem sector
17
Dec '12
The continuing global economic uncertainty is negatively impacting the petrochemical sector of Saudi Arabia, according to a report released by NCB Capital, MENA Financial Network reported.
 
The increase in prices of Saudi petrochemical products is being obstructed by weak demand and increasing supply. Operational inefficiencies at new plants also add to the weak performance of the Kingdom’s petrochemical sector, according to the report.
 
The report forecasts the Chinese petrochemical demand to remain weak in short term, owing to slowing domestic demand and reduced industrial activities. In 2011, Chinese GDP grew by 9.2 percent, but it is expected to grow by 7.8 percent and 8.2 percent respectively in 2012 and 2013.
 
According to the analysis, excess supply will put pressure on prices. It is because three new petrochemical projects started their commercial/trial operations in second half of 2012. These include projects of Petrochem’s Saudi Polymers Company, and LDPE facilities of Industries Qatar and Saudi Kayan.
 
Secondly, the GCC’s annual petrochemical capacity is likely to increase by 19.4 percent from 121 million tons in 2011 to about 145-146 million tons in 2016. This will lead to an increased supply and put pressure in the long-term and hence, prices of petrochemical products are likely to dip by 5-10 percent year-on-year in 2013.
 
However, prices of few petrochemical products such as ethylene glycol and polypropylene are forecasted to remain flat owing to strong demand for these products from the textile industry, the report states.
 

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Shopper Stop

Apparel/Garments | On 30th Mar 2017

Contactless payments at Shoppers Stop

India's leading fashion retailer Shoppers Stop has entered into a...

Textiles | On 30th Mar 2017

Cotton target price kept unchanged in Xinjiang

China’s National Development and Reform Commission (NDRC) has kept...

Courtesy: Li & Fung

Textiles | On 29th Mar 2017

Li & Fung introduces new 3-year plan 2017-2019

Li & Fung Limited has outlined its next Three-Year Plan (2017-2019)...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search