GCC petchem exports to China continue to rise, despite waning demand

The slowdown of the Chinese economy has not stopped GCC petrochemical producers to continue to grow their exports to China during 2014. Data from the Gulf Petrochemicals and Chemicals Association (GPCA) shows that GCC petrochemical exports rose to 13.5 million tons, valued at US$15.4 billion. Volumes are up 5% more compared to 2013, while revenues increased by 5%. 65% of the export volume consisted of basic, intermediate and chemicals exports; while polymers made up 33% and fertilizers 1%. Saudi Arabia is responsible for 64% of the export volume to China; valued at almost US$10 billion. The UAE is the GCC’s second largest exporter to China, responsible for 11% of the total volume; valued at almost US$2 billion, followed by Kuwait, responsible for 10% of total exports, valued at about US$1.6 billion.

“It is inevitable that GCC producers will feel the drag from Chinese slowing demand for petrochemical products,” says Dr. Abdulwahab Al-Sadoun, GPCA Secretary-General. “China’s self-sufficiency in some petrochemicals and polymers is also increasing. But despite these challenges, GCC exports have continued to perform well and in the long run, there will still be substantial room for petchem imports to China. By 2020, Chinese polypropylene (PP) production, for example, is expected to reach around 24 million tons against consumption in the region of 28 million tons.”

At the 10th Annual GPCA Forum two presentations are dedicated to the importance of China in petrochemical markets: Mr Jose Manuel Martinez, CEO of CEPSA QUIMICA, shares his company’s experience of investing in China from the viewpoint of a European company serving global markets. Why is China crucial to their future success, and what are the challenges associated with entry to China? Dr Dahai Yu, China expert and former Chairman of Evonik (China) Co. Ltd, offers his overview of the latest chemicals landscape in China, and how it is developing at a time of major transformation.

These speakers form part of the high level speaker program at the 10th edition of the Annual GPCA Forum, which has grown since its inception to be the flagship petrochemical event in the Middle East. Over 2,100 international attendees will gather in Dubai to exchange ideas and information and extend their business network.

Source: Emirates news agency