Despite the recent financial hiccups in the global market, the Middle East countries continue with exports as usual in 2008. It looks as if the situation does not affect the demand for Middle East petchem.
This is mainly due to the substantial cost advantage (feed stock advantage) the region has over other producers. In addition to that, many of the countries are booming with new capacity addition of petrochemical plants, boosting competition. Demand for 2008 is expected to remain high despite there is a potential slower growth in the Western world affecting mostly ethylene demands.
Shipyards are also busy with new ships being built pushing supply down on top of other underlying problems such engineering and the design process.
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