The share price of The Siam Cement Public Company Limited (SET: SCC) at the time of 11.22 a.m. was trading at THB 171, representing an uptick of THB 8.50 or 5.23%, with a total trading value of THB 511.94 million.
InnovestX Securities (INVX) views SCC as benefiting in the short term from progressing trade negotiations between China and the United States, which have recently resulted in a preliminary framework agreement.
The development has boosted market sentiment for commodity-related stocks, including SCC, which generates a significant portion of its revenue from its petrochemicals and cement segments.
INVX expects SCC’s profit trend for the second quarter of 2025 and the remainder of the year to remain positive. The outlook is especially strong in the petrochemical business, which is experiencing a clear recovery thanks to widening product spreads.
Notably, the spread for HDPE (High Density Polyethylene) has increased by 15.6% quarter-on-quarter and 1.6% year-on-year. Meanwhile, PP (Polypropylene) prices have surged by 18.8% from the previous quarter and 19.0% from the same period last year, partly due to a significant drop in naphtha feedstock costs.
Additionally, the selling prices of cement products continue to hold firm, further supporting SCC’s profit growth in the second quarter, and providing momentum for a strong earnings performance in the second half of the year.
