The prices of most petrochemical products declined 2-8% on a monthly basis in August 2014 after rising in July, NCB Capital (NCBC) has stated in a recent report.
The research firm indicated that this decline was due to lower oil prices and the weakness in some fundamental demand indicators such as the Chinese and European PMIs.
On a monthly basis, methanol was the top riser (+4.4%), while butadiene was the biggest decliner (-11.8%).
The petrochemical prices have been mixed since the beginning of this year, as the ethylene was the top riser (+6.2%) and methanol was the biggest faller (-33.6%).
The petrochemical industries sector rose 9.3% month-on-month, outperforming the other sectors by 1.9%.
Sipchem led the way on gains, leaping 13.9%, followed by Kayan (+10.5%), then Nama Petrochemicals (+8.2%).
NCBC recommended ‘Overweight’ on Tasnee, Yansab, SABIC and Saudi Industrial Investment Group. Meanwhile, it recommended ‘Neutral’ on Sipchem, Sahara, Kayan, SAFCO, Petrochem and Advanced.