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The ongoing trade war between the United States and China has provided various opportunities for GCC petrochemical producers, albeit temporary, Al-Eqtisadiah newspaper reported on Sunday, citing Abdulwahab Al Sadoun, Secretary General of the Gulf Petrochemicals and Chemicals Association (GPCA).
China’s decision to impose a 25 percent tariff on US propane and butane imports has led to higher prices and demand for products from the GCC, he said.
While petrochemical products have not yet been targeted by the trade wars, Gulf producers are looking to protecting export from potential negative impacts, through reviving free trade talks with the European Union, China and others.
The GCC countries export 85 percent of their petrochemical products. Accordingly, potential obstacles such as customs or non-customs duties are likely to adversely impact the industry.
According to a recent report by S&P Global Platts, Chinese buyers are snapping up spot LPG cargoes offered by Middle Eastern producers, as the country prepares to impose tariffs on US propane and butane imports amid escalating trade tensions.
Trade tensions between the US and China have rattled global markets this year. The dispute began earlier in 2018, as the US accused China of resorting to “unfair” tactics to create a large trade surplus with the US and stealing American technology.
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