State-backed petrochems giant accused of dumping cut-price exports in Turkish market
Saudi Arabia and Turkey are in talks over a claim that Saudi
Basic Industries Corp, the world’s largest petrochemical maker, is dumping
exports in the Turkish market, a Saudi oil ministry official said.
Turkey’s government agreed to re-evaluate the case against
the company known as Sabic after the European Union and India last month
dropped similar claims against the company, Prince Abdulaziz bin Salman Al
Saud, the deputy oil minister, said in a telephone interview from Riyadh on Jan
Sabic is accused of dumping monoethylene glycol, Chief
Executive Officer Mohamed al-Mady told the Saudi newspaper al- Watan on Jan 4.
The Turkish claim is the only such case outstanding remaining against the
company, Al Watan reported, citing al-Mady. China dropped a claim of its own in
Saudi Arabia sells natural gas, a raw material used to make
petrochemicals, at subsidized rates to Sabic and other manufacturers. The Saudi
government set the gas price at 75 cents a million British thermal units, NCB
Capital, the investment arm of Saudi Arabia’s largest bank by assets, said in a
report last month. US natural gas averaged $4.028 a million BTU last year.
Saudi authorities last year put the Petroleum Ministry in
charge of negotiations over claimed dumping with the EU and India. Prince
Abdulaziz is leading all talks on dumping claims against Saudi petrochemicals
exporters. Saudi Arabia “respects all the international trade agreements that
it had under the World Trade Organization,” he said.
India, which is seeking to buy additional crude oil from
Saudi Arabia, imposed a 6.5 percent duty in November 2010 on polypropylene
imports from Sabic, Advanced Petrochemicals Co. and National Industrialization
Co, saying the suppliers sold their products below cost. The Prince said the
duty was imposed before his team started negotiations.
“After the formation of the team in April last year, efforts
with the Indian side have been intensified, and the case was resolved in
satisfactory way to both parties,” he said.