DUBAI: GCC petrochemical exports to China rose to 13.37 million tonnes, valued at $15.15 billion in 2014, recording a 5% increase compared to 2013, according to latest industry report by the Gulf Petrochemicals and Chemicals Association (GPCA).
The growth of Gulf petrochemical exports to China and Chinese revenues, which also rose with the same percentage, are continuing despite the slowdown of Chinese economy.
GPCA added that the largest proportion of the Gulf chemical exports volume consisted of basic, intermediate and chemical products which represent 61% of petrochemical exports.
38% of the exports are polymers and 1% fertilizers.
Saudi Arabia provides 67% of the petrochemical exports, valued at $10.45 billion, followed by the UAE which is responsible for 12% of the total exports, valued at $1.98 billion.
Qatar accounts for10% of the exports, valued at about $1.44 billion, while Kuwait, Oman and Bahrein all consisted 6%, 5% and 1% of the total volume of exports, valued at $837 million, $431 million and $46 million (respectively).
Secretary General of GPCA, Dr. Abdulwahab Al-Sadoun, said that the slowdown of Chinese economy has a direct impact on the volume of demand and the prices which lead to a reduction of profit margin of the gulf producers as Chinese self-sufficiency in petrochemicals and polymers puts pressure on prices.
Despite of these challenges, GCC exports to China are still in growth. The Chinese continued strong demand for gulf petrochemicals is expected in the long-term while the Chinese production of Polypropylene (PP) is expected to rise to 24 million tonnes in 2020 against a consumption of 28 million tonnes, Al-Sadoun added.
The upcoming 10th annual forum of GPCA, slated for Dubai next wednesday, is expected to allocate two sessions to discuss developments and directions of Chinese markets, as one of the most important global petrochemical markets.
