Petrochemical producers in the Gulf Cooperation Council continue to collect profits despite a major plunge in the prices of petrochemical products, according to a senior industry source.
This year, the prices of petrochemicals suffered a drop of ten to 30 per cent depending on the products, says Abdulwahab Al-Sadoun, secretary-general of the Gulf Petrochemicals and Chemicals Association (GPCA).
In remarks published by Al Eqtisadiah, he adds that GCC petrochemical companies increased their production performance to further mitigate the impact of the price slump, adding that regional producers remain in a better position, in terms of their ability to withstand relatively lower prices, than their peers in different parts of the world.
He points out that slower global economic growth will certainly leave an impact on petrochemical prices because demand will go down and so will prices.
However, Al-Sadoun says that petrochemical products are used in the automotive and construction industries, which are expanding and reporting high demand.
Producers who have strong production capacity are the ones who will maintain their share in the market, he added.