GCC petrochemicals industry likely to recover by Q3 2020: GPCA

The GCC petrochemicals industry will likely start to recover by Q3 2020, Al-Eqtisadiah newspaper reported, citing Abdulwahab Al-Sadoun, Secretary General of Gulf Petrochemicals and Chemicals Association (GPCA).

"The industry will witness weaker demand and slightly lower growth rates," stated Al-Sadoun.

However, Al-Sadoun indicated that it is difficult to determine the impact of the COVID-19 outbreak on the industry, as all the commodities segments were certainly affected.

The GCC products have a competitive advantage in terms of production costs, Al-Sadoun noted, adding that the expansion projects will be reconsidered within the GCC and overseas due to lower petrochemicals prices.

Lower capital expenditure for companies may make the situation worse in the short term, he explained.