Middle East: Propylene Oxide Market 2024

Propylene Oxide Market Size in the Middle East

In 2021, the Middle Eastern propylene oxide market decreased by -49.3% to $X for the first time since 2018, thus ending a two-year rising trend. In general, consumption, however, recorded a significant increase. As a result, consumption reached the peak level of $X. From 2014 to 2021, the growth of the market remained at a lower figure.

Propylene Oxide Production in the Middle East

In value terms, propylene oxide production fell modestly to $X in 2021 estimated in export price. The total output value increased at an average annual rate of +1.0% from 2012 to 2021; the trend pattern remained relatively stable, with only minor fluctuations being observed in certain years. The growth pace was the most rapid in 2018 with an increase of 14%. Over the period under review, production attained the peak level at $X in 2014; however, from 2015 to 2021, production stood at a somewhat lower figure.

Propylene Oxide Exports

Exports in the Middle East

In 2021, after two years of decline, there was significant growth in shipments abroad of methyloxirane (propylene oxide), when their volume increased by 68% to X tons. In general, exports, however, showed a slight decline. The pace of growth appeared the most rapid in 2014 when exports increased by 193% against the previous year. Over the period under review, the exports hit record highs at X tons in 2012; however, from 2013 to 2021, the exports stood at a somewhat lower figure.

In value terms, propylene oxide exports skyrocketed to $X in 2021. Overall, exports posted a noticeable expansion. The pace of growth appeared the most rapid in 2014 when exports increased by 228%. Over the period under review, the exports reached the maximum in 2021 and are likely to continue growth in the immediate term.

Exports by Country

The shipments of the one major exporters of methyloxirane (propylene oxide), namely Saudi Arabia, represented more than two-thirds of total export.

Saudi Arabia was also the fastest-growing in terms of the methyloxirane (propylene oxide) exports, with a CAGR of -1.7% from 2012 to 2021. The shares of the largest exporters remained relatively stable throughout the analyzed period.

In value terms, Saudi Arabia ($X) also remains the largest propylene oxide supplier in the Middle East.

In Saudi Arabia, propylene oxide exports increased at an average annual rate of +2.3% over the period from 2012-2021.

Export Prices by Country

The export price in the Middle East stood at $X per ton in 2021, picking up by 51% against the previous year. Export price indicated temperate growth from 2012 to 2021: its price increased at an average annual rate of +4.1% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, propylene oxide export price increased by +90.5% against 2016 indices. As a result, the export price reached the peak level and is likely to continue growth in the immediate term.

As there is only one major export destination, the average price level is determined by prices for Saudi Arabia.

From 2012 to 2021, the rate of growth in terms of prices for Saudi Arabia amounted to +4.1% per year.

Propylene Oxide Imports

Imports in the Middle East

In 2021, after seven years of decline, there was significant growth in purchases abroad of methyloxirane (propylene oxide), when their volume increased by 75% to X tons. In general, imports, however, recorded a abrupt shrinkage. Over the period under review, imports hit record highs at X tons in 2013; however, from 2014 to 2021, imports remained at a lower figure.

In value terms, propylene oxide imports surged to $X in 2021. Over the period under review, imports, however, saw a abrupt downturn. The level of import peaked at $X in 2013; however, from 2014 to 2021, imports remained at a lower figure.

Imports by Country

Israel was the main importing country with an import of about X tons, which reached 57% of total imports. Iran (X tons) held the second position in the ranking, followed by Kuwait (X tons) and Turkey (X tons). All these countries together held near 43% share of total imports.

Israel was also the fastest-growing in terms of the methyloxirane (propylene oxide) imports, with a CAGR of +44.0% from 2012 to 2021. Turkey (-6.3%), Kuwait (-9.7%) and Iran (-25.4%) illustrated a downward trend over the same period. While the share of Israel (+57 p.p.), Turkey (+7.2 p.p.) and Kuwait (+6 p.p.) increased significantly in terms of the total imports from 2012-2021, the share of Iran (-36.3 p.p.) displayed negative dynamics.

In value terms, Israel ($X) constitutes the largest market for imported methyloxirane (propylene oxide) in the Middle East, comprising 58% of total imports. The second position in the ranking was held by Iran ($X), with a 22% share of total imports. It was followed by Kuwait, with a 13% share.

In Israel, propylene oxide imports increased at an average annual rate of +58.5% over the period from 2012-2021. In the other countries, the average annual rates were as follows: Iran (-17.3% per year) and Kuwait (-5.5% per year).

Import Prices by Country

The import price in the Middle East stood at $X per ton in 2021, rising by 6.9% against the previous year. Overall, the import price saw prominent growth. The most prominent rate of growth was recorded in 2020 an increase of 72%. The level of import peaked in 2021 and is likely to continue growth in the near future.

There were significant differences in the average prices amongst the major importing countries. In 2021, amid the top importers, the country with the highest price was Iran ($X per ton), while Turkey ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Iran (+10.9%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

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