Rising plastics exports dominate nonoil trade

The value Saudi nonoil exports reached SR 13.7 billion in February, falling short of last year's SR 15.2 billion by 10 percent. Volume-wise, they amounted to 3.43 megatons versus 3.92 megatons in the same month last year, a -13.5 percent change on an annual basis, according to a report by the National Commercial Bank.
The monthly bulletin of the Central Department of Statistics and Information (CDSI) shows that plastics dominated exports by 35.3 percent, advancing by 5.9 percent over last year to rack up a total of SR 4.8 billion. Revenues from chemical products exports make up 31.3 percent of the overall nonoil exports' return. Compared to last year, exports of this category receded by 25.7 percent allowing it to fall behind plastics, totaling SR 4.28 billion. Base metals leaped significantly over last year's figure by 33.8 percent, to record SR 1.1 billion of revenue.
Exports destinations were led by China, which imported a worth of SR 2 billion, registering a decline of 8.1 percent. It, however, boosted its share of Saudi exports allocation up to 14.8 percent from a 14.4 percent last year. UAE comes in second, with exports valued at SR 1.5 billion, a 19.4 percent decline from February 2012. The share of total exports in which the UAE contributed was also downsized to 10.9 percent from 12.1 percent. Singapore, the third largest trading partner also slashed its demand for the Kingdom's exports by 25.3 percent to stand at SR 0.6 billion from SR 0.8 billion last annum.
The NCB report said Saudi imports in February continued to moderate following the surge that peaked in July last year. Total nonoil imports reached the value of SR 45 billion, a 4 percent Y/Y upturn. In terms of volume, however, imports showed a considerable 12.6 percent decline compared to last year, weighing 5.8 megatons. This indicates that global inflationary pressures are beginning to hamper demand for more imports. By categories, machinery and electrical equipment occupied 28.2 percent of total imports, registering a 7.5 percent rise Y/Y with an amount of SR 12.7 billion. Transport equipment constitutes 16.6 percent of this month's total imports. With SR 7.5 billion, it lessened by 3 percent compared to February of last year. Base metals imports were valued at SR 5.7 billion, making up 12.6 percent of imports. They slumped by 9.3 percent Y/Y.
By origin, the United States earned the lion's share of SR 6 billion, predominating 13.5 percent of imports to the Kingdom, and surging by 21.4 percent over last year's figures. China, a close second, also imported a worth of SR 6 billion, a 3.5 percent annual increase. Germany was the third largest importer with a share of 6.4 percent of total nonoil imports. Its imports fell by 15 percent in the last 12 months to SR 2.9 billion.
Settled letters of credit (LCs) in the month of March show a general improvement compared to the last couple of months.
On annual basis, settled LCs grew by 8.1 percent supported by a surge in foodstuff and motor
vehicles by 61.6 percent and 45.8 percent respectively. Machinery and building materials both appeared on the negative side, showing a -23.8 and -10.2 percent growth, respectively. Opened LCs show a 15.2 percent annual upsurge, supported by a boosted demand for motor vehicle suppliers by 105.1 percent Y/Y, followed by foodstuff's demand escalating by 38.8 percent Y/Y. Machinery and building materials will continue the negative trend, receding annually by 12.7 percent, and 28.9 percent respectively.