On Tuesday at 11:10 AM (Bangkok time), the share price of Indorama Ventures Public Company Limited (SET: IVL) soared by 11.44% or THB 2.30 to THB 22.40, with a trading value of THB 924.53 million.
PTT Global Chemical Public Company Limited (SET: PTTGC) rose by 9.57% or THB 2.75 to THB 31.50, with a trading value of THB 1.08 billion.
The Siam Cement Public Company Limited (SET: SCC) gained 6.00% or THB 10.50 to THB 185.50, with a trading value of THB 653.60 million.
Star Petroleum Refining Public Company Limited (SET: SPRC) increased by 5.76% or THB 0.40 to THB 7.35, with a trading value of THB 124.50 million.
Krungsri Securities (KSS) noted that most segments within the petrochemical sector showed week-on-week recovery, supported by tighter supply as some facilities reduced output or halted production.
- In the olefins line, spreads for HDPE and PP increased 19-21% week-on-week to $451 and $482 per ton, driven by supply disruptions that offset a slowdown in restocking activity in China.
- In the aromatics segment, PX spreads rose 11% week-on-week, boosted by stronger downstream demand.
- For polyester (PET), integrated spreads surged 40% week-on-week, also due to tighter supply as certain plants scaled back operations amid a shortage of MEG feedstock.
Krungsri maintained its March 2026 outlook, expecting the olefins line to recover on a month-over-month basis from a low base, supported by China’s seasonal large-scale restocking and ongoing supply disruptions related to the conflict in the Middle East. The brokerage identified IVL and PTTGC as less exposed to Middle East feedstock supply risks compared to peers.
UOB Kay Hian Securities (Thailand) (UOBKH) indicated that IVL product spreads will likely benefit from higher crude oil prices, with limited impact from Middle East supply disruptions. The firm set a target price of THB 24 per share and a stop-loss at THB 18.90.
Kingsford Securities expects PTTGC’s first-quarter 2026 earnings to improve quarter-on-quarter, even as its OLE4 olefins plant undergoes planned maintenance. The brokerage believes the rebound in olefins spreads in March will help mitigate the effects of disrupted naphtha feedstock supplies from the Middle East, which forced some petrochemical plants to temporarily halt production.
PTTGC is insulated from this impact, primarily sourcing ethane from PTT’s GSP and naphtha from its own refinery.
The refining business is highlighted by consistently high GO spreads and anticipated gains from a shift back to crude oil inventory profits. PTTGC’s refinery derives only 5-10% of its crude from the Middle East, with most coming from the U.S., WAF, and Asia.
An additional THB 2.3 billion in special gains from asset monetization transactions is also expected to be recognized. Kingsford recommends a ‘Speculative Buy’ on PTTGC with a target price of THB 28.00 per share.
