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

Textiles | On 26th Jul 2017

Textile Corp of America to create 1000 jobs in Tennessee

Textile Corporation of America Inc, a leading textile manufacturer,...

Courtesy: IVL

Textiles | On 26th Jul 2017

IVL completes PTA capacity expansion in Europe

Indorama Ventures Public Company Ltd (IVL), a global chemical...

Textiles | On 26th Jul 2017

Vietnam’s textile & garment exports cross $13bn in H1

Vietnam earned $13.... billion from textile and garment exports in...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eric Scholler
Groz-Beckert

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X