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BofA Keeps Yansab on Underperform as China 'Resilience' Signals Medium-term Oversupply Risks

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BofA Global Research affirmed its underperform rating on Yanbu National Petrochemical (SASE:2290), d/b/a Yansab, saying it remains "cautious" on the petrochemical products company as China's market "resilience" poses medium-term oversupply challenges.

"Bearish due to weak [mono-ethylene glycol] outlook over the medium term given increasing supply from both China and US. We think share price of Yansab is pricing in [above] mid cycle MEG price long-term, which we think is unjustified given continued oversupply risks in the product," according to a note focused on chemical companies in the Middle East and North Africa published Tuesday.

The research firm added that it sees "limited upside" in chemical prices despite "significant" supply disruptions, as stockpile drawdowns in Asia, primarily in China, kept chemical price spikes in check.

Analysts raised their price objective on Yansab to 30 Saudi riyals from 29 riyals. BofA also raised its full-year 2026 EBITDA forecast to reflect solid netbacks, robust sales, and an expected uptick in third- and fourth-quarter volumes due to the ongoing Strait of Hormuz blockade.

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HKG:0852
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Update: Market Chatter: Saudi Arabia Reportedly Tells European Oil Buyers of Shipment Cancellations

(Updates with Saudi Aramco's statement)Saudi Arabia told its buyers in Europe that some crude oil cargoes due for shipment in late September will be cancelled, Reuters reported Tuesday, citing three sources.The cancellation follows Saudi Arabia's recent decision to close the East-West pipeline, seen as an alternative to the Strait of Hormuz, in the wake of an attack.The Middle Eastern country's state-owned oil giant Saudi Arabian Oil Co (SASE:2222), d/b/a Saudi Aramco, declined to comment when reached by.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

SASE:2222
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Market Chatter: US-to-Asia Crude Shipping Costs Hit Record High

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