The prices of most Saudi petrochemical products declined by a maximum of 27 per cent in July as a result of a 15.8 per cent additional drop in crude oil prices.
Moderate demand sent the prices of butadiene and ethylene tumbling by 26.2 per cent and 17.7 per cent respectively, according to a report by Al-Riyadh daily.
The second-quarter results of most Saudi petrochemical producers show earnings retreating by 12.5 per cent year-on-year.
Continued uncertainty over Chinese economic growth and fluctuation of crude oil prices is forecast to place additional pressure on the prices of petrochemicals.
The net income of the Saudi petrochemical sector edged down by 8.6 per cent year-on-year to SAR8.4 billion, the report shows.
However, comparing on a quarter-on-quarter basis, the figures reveal that net income shot up by 92.4 per cent.
The petrochemical sector index in the kingdom’s stock market dipped by 1.1 per cent in July, the data indicates.
China’s imports of major petrochemical products increased by 3.7 per cent on an annual basis to 2.4 million metric tonnes in June 2015, but reported a four per cent decline month-on-month.
(SAR1 = AED0.98, at the time of publishing)