TASNEE overcame difficulties, begins recovery: CEO

National Industrialization Co. (Tasnee) went through difficulties and began the recovery phase, as it succeeded in slashing loans from SAR 27 billion to less than SAR 10 billion currently, said CEO Mutlaq Al-Morished. 

In an interview with Al-Ekhbariya TV, the CEO pointed out that the declines in prices that the sector witnessed by the end of 2022 have ended, indicating that the first quarter of 2024 will witness a slight increase in prices from 2-3%, with the exception of polypropylene, in which there is a surplus in supply as a result of increased production from China.

This slight increase is not important, but what is more important is the positive signal it gave, he said, noting that there is some clarity in 2024.

According to expectations, the Chinese economy will begin to rebound starting from Q1 2024, and this will have a positive impact on petrochemicals. Furthermore, the growth in demand from African markets and Turkey slightly offset the decrease in demand from China, said Al-Morished.

He added that China will continue to import petrochemicals as long as the cost of manufacturing them locally is high, highlighting that there are concerns about the competitiveness of the GCC petrochemical sector with the rise in costs and entry of US companies that have a competitive advantage represented in domestic consumption compared to Gulf companies that rely heavily on exports.