SABIC, Yansab’s fair values cut on low petchem prices: Albilad

Albilad Capital has reduced the fair values of SABIC, Yansab, SAFCO, and Maaden’s stocks amid low petrochemical prices, which have been dragged down by cheaper oil and an economic slowdown in China.

The oil supply glut in global markets is also behind the price drop, the firm said, adding that the slowdown in China will likely linger.

According to Albilad, China accounted for about 25 percent of the world’s consumption of polyethylene and polypropylene in 2014, in addition to 43 percent of methanol, and 30 percent of fertilizers.