Basic Petrochemical Performance Vary, as Intermediate, Final Products Decline -Al-Jazira Capital Outlook

Basic petrochemical performance has varied, as the intermediate and final products have declined, while Aramco continues to reduce its products’ prices.

There was a decrease in naphtha prices, in December compared to the previous month by 1.4 percent to $710 per ton, Propane and Butane prices also were decreased by 8.6, 9.6 per cent, respectively, to $795 and 795 per ton, respectively, adding that Aramco has reduced January’s prices for the Propane as well as the Butane to $740 and $710 per ton, respectively, while November prices were at $795 and $710 per ton, respectively, following decreasing them, last December to $795 per ton and $750 per ton, respectively, while it were at $870 per ton and $830 per ton, respectively, according to Al-Jazira Capital.

Adding that the prices of Ammonia and Diammonium Phosphate have increased, while the prices of Ethylene Vinyl Acetate and Acetic acid declined, in December, as Aramco reduced the prices of Propane and Butane for the month of January.

The performance of basic products varied, while the prices of medium and final products declined, as Ammonia prices rose in December by 17.2 percent from the previous month to $850 per ton, supported by the high demand from the agricultural and industrial sectors, Al-Jazira Capital added.

Pointing out that the Ammonia prices have strengthened as a result of the reduction in production, due to the fluctuation of natural gas prices.

The reported also that the prices of Ammonium Phosphate have benefited from the improvement, in agricultural demand, as it rose by 15.6%, to $890 per ton.

On the other hand, the Urea prices fell by 10.4% to $865 per ton, due to the decline in market activity, following the price hike in the past months, the report explained.

For the Ethylene Vinyl Acetate prices fell by 23.1% to $2,420 per ton, with a decline in the buying momentum, and Acetic acid prices also fell by 15.6%, to $865 per ton, due to the high supply.

Polycarbonate prices also have declined by 10.8 percent from the previous month to $2,675 per ton, due to the continued weak demand from the auto manufacturing sector.

Coming to the oil, its price has recovered again in December, as the decline in inventories in the United States and optimism about demand and interruptions, in Libya compensated for the concerns related to Omicron’s mutating variant, and as the upward trend continued, at the beginning of January, supported by supply concerns, adding that oil prices have fell during the week, the report elaborated, at the beginning of first month of the new year, due to pressures related to the spread of the Omicron mutant, then recovered in the second week, recording the first weekly rise in seven weeks, against the backdrop of expectations of a decrease, in the impact of the Omicron on the oil demand.

Oil prices have rose in the last two weeks of the year, with a decline in the US oil stocks, expectations of higher fuel demand, in 2022, and production interruption and consequently supply disruption, in Libya.