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Petchem product prices will remain under pressure in 2012

A report on Saudi Basic Industries Corp (Sabic) by Al Rajhi Capital has said majority of petrochemical products' prices are to remain under pressure in 2012, Saudi Gazette has reported. The average product prices for key petrochemical products declined by about 10-15% year-on-year during the second quarter, mainly due to the weaker demand environment and escalating euro zone crisis, the report noted. The average product prices are expected to contract further by 2-5% over the next two quarters owing to weaker demand from China, sufficient supply, and continued uncertain global economic outlook, the firm said.