Saudi Arabia’s petrochemicals exports jump rise in May 2011 on stronger demand from Asia

12-Jul-11

Saudi Arabia’s petrochemicals exports increased to SR4.80 bln (US$1.28 bln), rising by 39% in value in May 2011 compared to SR3.45 bln in May 2010 because of higher prices and stronger demand from Asia, as per Saudi Gazette. Exports rose 26% on a month-to-month basis, as per the Department of Statistics and Information. Petrochemicals accounted for 34% of Saudi Arabia’s non-oil exports valued at SR13.9 bln in May. Plastics comprised 30% of the total. The Kingdom reported a 20% growth in petrochemicals shipments in April on higher demand from Asia. Companies including Saudi Basic Industries Corp. (SABIC) exported 2.66 mln tons of petrochemicals in April compared with 2.21 mln tons in the year-ago period, the Saudi Ports Authority reported. That is similar to the shipments in March and 6.4% higher than in February. In the first two months of 2011, Saudi Arabia’s petrochemicals exports grew 6.8% y-o-y to 4.65 mln tons. Growth was spurred on by rising demand from Asia and increased local production of ethane feedstock. A rise in ethane output was related to higher oil production with crude up 300,000 bpd to 8.7 mln bpd in February which resulted in increased associated gas production.