Saudi petchem prices faced pressure in May: Aljazira Capital

Saudi Arabia’s petrochemicals prices continued to see pressures in May, Aljazira Capital said in a recent report.

Polypropylene prices maintained their downtrend, declining by 0.5 percent month-on-month (MoM) to $1,000 a ton despite an 8.2 percent rise MoM in feedstock propylene prices.

Polyethylene followed the trend, as high-and low-density polyethylene (H/LDPE) dropped by 2.2 percent and 2.5 percent MoM in May, respectively. Linear low-density polyethylene also registered a 1.8 percent decline when compared to the previous months.

Naphtha lost 3.3 percent MoM to $440 a ton in May, following a gain of 1.1 percent MoM in April.

Prices of polystyrene extended their negative performance for the third consecutive month, falling 2 percent MoM to $1,230 a ton in May.

Saudi propane and butane prices were unchanged at $385 a ton and $390 a ton, respectively in the same period.

Titanium dioxide (TiO2) recorded remarkable gains in May, adding 8.7 percent MoM to $2,828 a ton. May.

Petrochemical spreads were mixed, as those of HDPE-naphtha and PP-naphtha contracted to $673 a ton, and $548 a ton, respectively.

The PP-propane spread narrowed to $604 a ton in May from $607 a ton in April.

Elsewhere, spreads of HDPE-ethylene and LDPE-ethylene increased to $26 a ton and $118 a ton in May, respectively.

Meanwhile, oil prices rose slightly in the same month, with Brent and WTI gaining 0.8 percent MoM and 1 percent MoM, respectively.