The Gulf petrochemical sector is shielded from any slump or deflation because supply levels still cannot keep up with current demand.
That was the popular sentiment from extensive discussions on the impact of the falling oil prices on the petrochemical sector on the concluding day of ArabPlast 2015.
Commenting on the co-relation between oil prices and petrochemical production, especially polymers, Fahad bin Abdullah Al Theban, general manager, Gulf Polymers, said that oil prices have reduced polymer prices by 25% since the beginning of December.
Al Theban said that the decline in polymer prices could boost demand from countries such as China, India and some European and African countries.
He explained that according to latest analysis, oil prices would climb higher in the second quarter of 2015, because the excess oil would have been consumed and global balance between supply and demand would be stabilised.
He added: “Demand for polymers in KSA is the highest in the Arab world, thanks to the large number of plastics conversion factories in the kingdom.”
There are 1000 plastic mills in the UAE, of which 20 invested $75mn to upgrade machinery last year, according to plastics machinery experts at the show.
