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FINANCIAL NEWS
Sabic expects higher steel prices in Q2
19 Apr 2010
(MENAFN) Chief Executive of Saudi Basic Industries Corp (Sabic), Mohamed Al Mady, said that steel prices are expected to get higher during the second quarter this year, which would raise the company’s second-quarter net profit above the $1.45 billion it made in the first three months of the year, Reuters reported.
Al Mady said that all indicators show that quarter-to-quarter growth will continue, although at a lower pace.
He pointed out that predicting prices is hard under the prevailing conditions; however, there prices of some petrochemical products started going down, and there are new capacities entering the international market. He said that the firm will play on quantities to help boost its revenues.
In the first quarter, Sabic, which is the world’s biggest chemical firm by market value, saw a 19 percent net profit rise over the last three months of 2009.
Earlier this year, the company started units at both the four million ton per year Yanbu National Petrochemicals Co (Yansab) and at the expanded Jubail’s Eastern Petrochemical Co (Sharq). It will soon commence commercial operations at the 3.2 million ton per year Tianjin complex in China, which is a joint-venture with Sinopec.
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