Petrochemicals prices ‘nearly flat’ in Saudi Arabia, says Tasnee CEO

The current prices of petrochemical products in Saudi Arabia are nearly flat compared to last year’s level, Mutlaq Al-Morished, Chief Executive Officer of the National Industrialization Co. (Tasnee) told Argaam.

“Polyethylene prices are currently below the $1000 barrier, after it was priced at $1,400 per ton last year. Some products are even priced at less than $900, which represents a steep decline in prices,” Al-Morished said during the company’s press conference on Q3 2019 financial statements.

Tasnee recorded robust financials in Q3 2019 despite lower global demand, decreased prices and the US-China trade war.

Al-Morished however expected a gradual improvement in demand by 2020, backed by the end of the trade war. He added that the company is mulling over expansion plans in the petrochemicals industry locally and globally.

“We are currently in initial talks for expansions,” he added.

“We are bracing for expansions in the Kingdom, provided that feedstock will be offered at affordable prices. If feedstock is not available, we will seek more investments abroad,” said Fawaz Al Fawaz, Chief Financial Officer at Tasnee.

The Titanium Sponge Project launched the trial operations in Q3 2019 but yields will need some more time to show, Al Fawaz indicated.

Tasnee reported net profit of SAR 41.2 million in Q3 2019, down by 84 percent year-on-year.