Jan. 9 (Bloomberg) -- 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. 5.
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 2010.
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. U.S. 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.
--Editors: Bruce Stanley, Rachel Graham
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