Karachi, September 14, 2022 (PPI-OT): Chemicals Margins: A Mixed Bag

PVC-Ethylene core delta has declined by 55.3% YTD from US$978/ton in Dec’21 to US$438/ton on account of sharp drop in PVC prices (-37.2% YTD) while ethylene prices remained relatively stable (-1.9% YTD) owing to higher crude oil prices.

Economic slowdown, prolonged monsoon season and increased output from China have led to significant decline in PVC-Ethylene core delta on a YTD basis.

PTA-PX margins, on the other hand, increased on the back of rising PTA prices. PTA-PX margins improved 20.1% YTD from US$154/ton in Dec’21 to US$185 / ton on account of relative increase in PTA prices (19.8% YTD) against PX prices (19.7% YTD). PTA prices increased on account of stable demand from packaging industry (PET Bottles) and closure of plant in China.