The petrochemical chain pricing largely followed the direction of crude oil prices during the week tapering down over 10 percent across varied feedstock, analysts said. Resultantly, PolyVinyl Chloride (PVC) and Polyester Staple Fibre (PSF) margins leapt higher during the week, they added.
During the week, PVC prices remained unchanged at $865/ton for South East Asian region. On the other hand, ethylene prices came off by $95/ton to stand at $600/ton, a marked drop of 14 percent on week-on-week basis, Asad Ali at BMA Capital Management Limited said.
PVC core delta settled at $565/ton, up by 9 percent WoW, the highest margin in the past 9 years. The latest data on margin is positive for Engro Polymer and Chemicals Ltd (EPCL).
Purified Terephthalic Acid (PTA) - Paraxylene (PX) margin hovered around the same levels for the week indicating the level of $108/ton.
Weakness in feedstock PX rates was witnessed in line with upstream energy prices as it came off by $80/ton to $590/ton, down 12 percent WoW while PTA depicted a similar trend to settle at $500/ton, down 10 percent WoW.
PTA-PX margin has hovered at the same levels for the past few weeks lower than long term average of $115/ton. The current trajectory remains negative for Lotte Chemical Pakistan Ltd (LOTCHEM).
Polyester Staple Fibre (PSF) margins rose by 10 percent WoW to $388/ton amid depressed feedstock rates. PSF prices were lower by 2 percent WoW at $986/ton. Mono-Ethylene Glycol (MEG) prices were noted at $480/ton, down $35/ton or 7 percent WoW.
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