Middle East polyethylene (PE) and polypropylene (PP) producers will enjoy good margins because of stable feedstock costs in 2012, but prices will likely remain stable-to-soft as a result of competition and weak demand, industry players said.
Ethane gas pricing in Saudi Arabia is unchanged at $0.75/MMBtu (€0.59/MMBtu), while Saudi propane gas pricing is still at a 28% discount to Japan naphtha prices less freight costs since 2011, Saudi players said.
With the continuous cost advantage, polyolefin producers in the Middle East said they will still be able to enjoy good margins and there are plans to even expand their resins business to more value-added downstream products.
Excellent forecast.
ReplyDeleteNabil Frik