The Middle East petrochemical industry should focus on emerging markets to grow, Gulf Petrochemicals & Chemicals Association Chairman Mohamed Al-Mady said at the fifth GPCA Forum in Dubai Wednesday.
"GPCA's strong growth is consistent with the growth of regional companies," Al-Mady said.
Unlike last year when the shadow of economic uncertainly clouded the GPCA Forum, Al-Mady was upbeat about the petrochemicals market performance this year and moving into 2011.
"The petrochemicals industry will continue to expand in terms of production volume and earnings," he said. "Demand from emerging market is likely to continue in 2011."
Citing strong GDP growth in emerging markets such as Brazil, Russia, India and China, Al-Mady said he saw strong growth for Gulf Cooperation Council petrochemical producers in these countries.
"There's more solid ground this year, it [the economy] is far healthier than last year," he said.
Echoing Saudi Arabia's oil minister Ali Naimi's address from last year's GPCA Forum, Al-Mady said the Gulf region should leverage on its comparative advantages of geography and an abundant supply of competitive feedstock. He urged members to adopt new technologies.
"The future of our industry is dependent innovation and continuous improvement," he said. "Those who fail to continuously improve their operations will lose competitiveness and fall."
But he was cautious in his optimism, pointing to excess capacities, currency wars and market bubbles.
SUPPLY GLUT COULD FOSTER PROTECTIONISM
Al-Mady said that surplus of petrochemicals may lead to protectionist sentiments and urged GPCA members to "promote and protect" their industry to safeguard against this.
He did not directly address India's antidumping measures against imports of polypropylene from two GCC countries, Saudi Arabia and Oman, but he did touch on the issue of free trade.
On November 22, India's Ministry of Finance imposed antidumping tariff on PP imports originating from Saudi Arabia, Oman and Singapore. The duties apply to all PP imports under HS codes 39021000 and 3902300, which include homopolymers as well as copolymers of propylene and ethylene, but exclude expanded polypropylene beads. Duties for Saudi and Oman cargoes range from $51.16/mt to $322.57/mt.
Al-Mady, who is also the vice chairman and CEO of the Saudi Basic Industries Corporation, had said at a press conference on Monday that the governments of Saudi Arabia and India were in talks over the issue and invited "other governments from the GCC" to join in.
"GPCA's strong growth is consistent with the growth of regional companies," Al-Mady said.
Unlike last year when the shadow of economic uncertainly clouded the GPCA Forum, Al-Mady was upbeat about the petrochemicals market performance this year and moving into 2011.
"The petrochemicals industry will continue to expand in terms of production volume and earnings," he said. "Demand from emerging market is likely to continue in 2011."
Citing strong GDP growth in emerging markets such as Brazil, Russia, India and China, Al-Mady said he saw strong growth for Gulf Cooperation Council petrochemical producers in these countries.
"There's more solid ground this year, it [the economy] is far healthier than last year," he said.
Echoing Saudi Arabia's oil minister Ali Naimi's address from last year's GPCA Forum, Al-Mady said the Gulf region should leverage on its comparative advantages of geography and an abundant supply of competitive feedstock. He urged members to adopt new technologies.
"The future of our industry is dependent innovation and continuous improvement," he said. "Those who fail to continuously improve their operations will lose competitiveness and fall."
But he was cautious in his optimism, pointing to excess capacities, currency wars and market bubbles.
SUPPLY GLUT COULD FOSTER PROTECTIONISM
Al-Mady said that surplus of petrochemicals may lead to protectionist sentiments and urged GPCA members to "promote and protect" their industry to safeguard against this.
He did not directly address India's antidumping measures against imports of polypropylene from two GCC countries, Saudi Arabia and Oman, but he did touch on the issue of free trade.
On November 22, India's Ministry of Finance imposed antidumping tariff on PP imports originating from Saudi Arabia, Oman and Singapore. The duties apply to all PP imports under HS codes 39021000 and 3902300, which include homopolymers as well as copolymers of propylene and ethylene, but exclude expanded polypropylene beads. Duties for Saudi and Oman cargoes range from $51.16/mt to $322.57/mt.
Al-Mady, who is also the vice chairman and CEO of the Saudi Basic Industries Corporation, had said at a press conference on Monday that the governments of Saudi Arabia and India were in talks over the issue and invited "other governments from the GCC" to join in.
