JS Securities Limited - JS Research.

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...