On Monday at 11:57 AM (Bangkok time), the share price of PTT Global Chemical Public Company Limited (SET: PTTGC) increased by 4.06% or THB 0.80 to THB 20.50, with a trading value of THB 408.18 million.
Indorama Ventures Public Company Limited (SET: IVL) rose by 3.27% or THB 0.50 to THB 15.80, with a trading value of THB 304.13 million.
The Siam Cement Public Company Limited (SET: SCC) advanced by 1.64% or THB 3.00 to THB 185.50, with a trading value of THB 309.36 million.
Yuanta Securities (Thailand) has adopted a more optimistic outlook for 2026 regarding the energy and petrochemical sectors, anticipating that the petrochemical industry is likely to find its bottom this year and start a gradual recovery next year. The recovery, however, could become more pronounced if the conflict in Ukraine reaches a resolution and stability returns, which would support increased demand for petrochemical products.
The brokerage firm forecasts that the direction of energy and petrochemical prices in 2026 will be mixed. Dubai crude oil prices are expected to average around US$65 per barrel, a year-on-year decrease due to oversupply conditions. Refining margins are projected to remain robust, especially for middle distillates in the early part of the year.
Although petrochemical spreads remain low compared to prior periods, a progressive recovery is anticipated from their low base in 2025, partly attributed to the closure of less efficient overseas facilities.
Yuanta maintains a ‘Neutral’ rating on the energy sector, noting performances will be driven by specific fundamentals and internal management. Should there be a resolution to the war in Ukraine, the petrochemical sector could benefit notably from lower feedstock costs in line with oil prices and rising demand for petrochemicals used in construction sectors—such as pipes, storage tanks, and wiring (PE, PVC).
This could translate into an initial demand increase of 1–5 million tons per year, helping to absorb excess supply and offering additional upside not factored into current assumptions. The sector also presents an attractive value opportunity, with relatively inexpensive valuations and attractive dividend yields.
PTT has been identified as the top-pick stock, rated ‘Buy,’ with a target price of THB 37.50 per share, due to its stable earnings, consistently high dividends, and potential to benefit from future government savings initiatives.
Additionally, petrochemicals are positioned as a dark horse in the event of an easing conflict. Yuanta has also upgraded its recommendations for PTTGC, SCC, IVL, PTG, and SPRC to ‘Buy,’ alongside increasing target prices for TOP and SPRC.
