During Feb’19, PVC and PTA margins went down by 19.1% / 13.4% MoM to USD 381/ton and USD 115/ton, respectively. However, PSF margins registered an increase of 4.3% MoM to USD 351/ton. The change in margins will have negative implications for Engro Polymer and Chemicals Limited (EPCL) and Lotte Chemical Pakistan Limited (LOTCHEM).
PSF Margins up by 4.3% MoM
PSF margins increased by 4.3% MoM to an average of USD 351/ton during Feb’19 (down by 6.7% MoM in Mar’19 based on two weeks data). The uptick in margins was witnessed due to decline in prices of Mone Ethylene Glycol (MEG). However, prices of Purified Terephthalic Acid (PTA) increased by 2.2% MoM (USD 865/ton). The impact of higher PTA prices was diluted by 2.6% MoM rise in Polyester Staple Fiber (PSF) prices. During 2MCY19, PSF margins have gone up by 41.2% YoY to an average of USD 343/ton.
Ethylene prices rise; PVC margins decline by 19.1% MoM
PVC margins went down by 19.1% MoM to an average of USD 381/ton during Feb’19 (down by 2.9% MoM in Mar’19 based on two weeks data). Downturn in margins was backed by 24.4% MoM rise in Ethylene prices to an average of USD 1,028/ton. Strong regional demand and tight product availability pushed up the prices during the month under consideration. However, PVC prices also increased by 1.3% MoM to an average to USD 900/ton. During 2MCY19, PVC margins jumped up by 38.4% YoY to an average of USD 427/ton.
PTA margins down by 13.4% MoM to USD 115/ton during Feb’19
PTA margins went down by 13.4% MoM to an average of USD 115/ton in (up by 13.4% MoM in Mar’19 based on two weeks data). Decline in margins was due to 6.4% MoM rise in Paraxylene (PX) prices. However PTA prices also increased by 3.2% MoM. During 2MCY19, margins have come down by 4.7% YoY to an average of USD 124/ton.