Aramco Reduce Petrochemical Products’ Prices -Al-Jazira Capital Revealed

Decrease across the profit margins of most petrochemical products, during the month of November, compared to its levels in the preceding October 2021, pushed Aramco to reduce various petrochemical products’ prices, Al-Jazira Capital revealed.

Noting that the polypropylene-naphtha margin contracted, in November, to $435, compared to $485 per ton, last October.

Saudi Aramco reduced the prices of propane for the month of December to $795 per ton and $750 per ton, respectively, while the prices in November and Dec., were at $870 per ton and $830 per ton of and butane respectively.

Polyvinyl-chloride-ethylene chloride margin decreased in November to $675 per ton, from $767 in October of this year, while the polystyrene-benzene margin rose in November to $498, from $474 per ton in October, according to Al-Jazira Capital’s report.

On the other hand, the margin of high-density polyethylene – naphtha – contracted to $406 per ton in November, compared to $432 per ton last October, and the margin of polypropylene –naphtha, declined to $435 per ton, from $485 per ton in the previous month, and the margin of polypropylene – butane shrank In November, but it rose to $361 per ton, from $458 per ton, in October.

The low-density polyethylene-naphtha margin decreased by 9.4% from the previous month, to $774 per ton, and the low-density polyethylene-naphtha margin decreased by 10.4% to $450 per ton in November.

The margin of linear low-density polyethylene-naphtha decreased in November by 11.3 percent, to $419 per ton, and the margin of linear low-density polyethylene-naphtha decreased to $95 per ton from $120 per ton last October.

Average price of naphtha in November fell to $756 per ton, compared to $768 per ton in October. Polypropylene prices fell in November to $1191 per ton, from $1,253 per ton, in October.

Oil prices began to rise at the advent of the month, with the commitment of the Organization of the Petroleum Exporting Countries and its allies, to increase production previously agreed upon at 400,000 barrels per day, until April 2022, according to the Al-Jazira Capital report,

Prices continued to rise further during the second and third weeks of the month, supported by high demand, as electricity companies turned to oil, as a result of rising fuel, coal and gas prices.

Oil prices fell towards the end of the month, due to expectations that the United States would take measures to reduce oil prices and fears of Iranian supplies return to the world market.