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SABIC sees slowdown in 2020

January 30/2020

MOSCOW (MRC) -- The CEO of Saudi Basic Industries Corp (SABIC), the worlds fourth-biggest petrochemicals firm, said he expects a slowdown in 2020, although it was too early to determine the impact of the outbreak of Chinas coronavirus on demand, reported Reuters.

SABIC had not suspended travel or taken any other measures because of the virus, Yousef al-Benyan said at a news briefing following the companys publication of its financial results.

"We havent had any ban in terms of trade or travel to China so far," he added.

SABIC reported a fourth-quarter net loss of 720 million riyals (USD191.94 million), the first quarterly loss in over a decade, due to lower average selling prices and a writedown at an affiliate.

As MRC informed earlier, SABIC Europe, an affiliate of SABIC, conducted a maintenance work at its cracker No.3 at Geleen site in the Netherlands last autumn. The planned maintenance started in September and lasted around 2 months. The company operates two steam crackers in Geleen which are capable of producing 1,250,000 tons/year of ethylene and 675,000 tons/year of propylene in total.

Earlier last year, SABIC took off-stream its SABIC Olefins 4 cracker owing to technical issues on May 10, 2019. Further details on duration of the shutdown could not be ascertained. Located in beek, the Netherlands, the cracker has an ethylene production capacity of 690,000 mt/year and a propylene production capacity of 360,000 mt/year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
Author:Margaret Volkova
Tags:Europe, PP, PE, crude and gaz condensate, homopolymer PP, propylene, ethylene, petrochemistry, Sabic, Russia, Saudi Arabia.
Category:General News
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