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Saudi Arabia will not increase feedstock price

According to a report by Saudi-based Al Rajhi Capital, the Saudi government will not increase ethane prices in 2013, as it is keen to preserve the feedstock advantage for the local petrochemical producers, Saudi Gazette has reported. Last January, the government postponed plans to raise the prices of ethane and methane (currently $0.75/mmbtu, which was set in 1998). Saudi petrochemicals exports would continue to rise, driven by routine plant shutdowns in Asia and not necessarily because of growing demand, Al Rajhi Capital said in its 'Saudi Petrochemicals Sector' report.