Saudi Arabia’s petrochemical sector passed the worst, Mutlaq Al-Morished, CEO of National Industrialization Co. (Tasnee) told Asharq Business.
He added that the recent rise in prices, even slight, indicates that the decline paused.
The economic growth in the Midde East and China was lower than expected, which impacted the financials of Q2 2023 and beyond.
The third quarter witnessed a slight improvement in prices by nearly $20 per ton, Al-Morished said, adding that prices will probably remain at the same level in Q4.
The production of polypropylene in China alone during the current year neared four million tons, the CEO said, noting that prices are the challenge, as economic growth is slow and supply is abundant.
The sector will never witness the post-coronavirus prices without strong global economic growth, regardless of oil prices, Al-Morished said.
The combined earnings of Tadawul-listed petrochemical companies reached SAR 682.9 million in H1 2023, a fall of 97% compared with a year earlier, according to data available with Argaam.
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