On Wednesday at 10:58 AM (Bangkok time), the share price of PTT Global Chemical Public Company Limited (SET: PTTGC) rose by 4.67% or THB 1.25 to THB 28.00, with a trading value of THB 854.24 million.
The Siam Cement Public Company Limited (SET: SCC) grew by 2.70% or THB 6.00 to THB 228.00, with a trading value of THB 1.63 billion.
Indorama Ventures Public Company Limited (SET: IVL) surged by 3.04% or THB 0.70 to THB 23.70, with a trading value of THB 796.23 million.
IRPC Public Company Limited (SET: IRPC) gained 3.65% or THB 0.05 to THB 1.42, with a trading value of THB 78.48 million.
Kasikorn Securities (KS) highlighted positive developments in the petrochemical sector following the approval of a significant industry restructuring plan by the South Korean government.
According to a Reuters report, South Korea’s Ministry of Industry has sanctioned the merger of olefins plants operated by Lotte Chemical and HD Hyundai. This initiative is supported by a substantial financial package worth $1.3 billion.
The restructuring plan is expected to withdraw about 1.1 million tons of annual production capacity from the market, which aligns with the government’s broader objective to reduce overall capacity by 3-4 million tons.
Additionally, a recent decision by the U.S. Supreme Court to revoke reciprocal tariffs imposed by the Trump administration could spur accelerated restocking activities among U.S. importers. This is likely to lead to a short-term increase in import demand, which should positively impact product spreads, mirroring the favorable conditions seen in the second quarter of 2025.
Kasikorn noted that foreign fund flows into petrochemical stocks remain relatively muted compared to those in the refinery and upstream sectors. This could provide short-term opportunities for speculative trading in Thai petrochemical stocks such as PTTGC, SCC, IVL, and IRPC.
Among these, the brokerage maintains a preference for PTTGC, citing its still-low proportion of foreign ownership.
