Monday 19 January 2015

Petrochemicals squeezed in the short term | The National

Petrochemicals squeezed in the short term | The National:



"The petrochemicals sector has been squeezed in the past few months, even while the longer-term prospects for the industry in the region look positive.



Companies such as Sabic are being hit by a combination of lower oil prices as well as lower demand and thus tighter margins.



Sabic has long-term contracts for its feedstocks from Saudi Aramco. So the decline in oil prices will not have affected its cost base. But as the naphtha-linked sales of its end products decline, it will take time to adjust and recover margins, analysts say."



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