Petrochemicals markets are stuck in the doldrums, and even Saudi companies with low-cost feedstock and an advantageous geographical location with access to eastern and western markets are struggling to generate profits.
Prices are being weighed down by industry oversupply after China brought substantial new capacity online in recent years. Ibrahim al-Rushoud, CEO of listed Saudi firm Sipchem, told the FII conference in Riyadh this week that “the oversupply is real and cannot be ignored today,” stating that unlike in previous downcycles, Saudi firms have cut back on production in order to ensure profitability where possible. (CONTINUED - 837 WORDS)
