Equity Analysis /
Saudi Arabia

Petrochemical Tracker: Prices decline, spreads improve

    Iyad Khalid Ghulam
    Iyad Khalid Ghulam

    Vice President, Senior Equity Research Analyst

    SNB Capital
    8 July 2019
    Published by

    In June 2019, the TASI Materials Index increased 3.6% mom, in line with TASI. Petrochemical product prices were mainly negative last month with HDPE and PP declining 2.5% and 5.5%, respectively. The PP-propane spread increased 3.3% mom to US$623, while the PP-naphtha spread remained flat mom at US$569. QTD, the average PP-propane spread declined 7.7% qoq (-20.7% yoy) to US$596.

    • In June 2019, prices of most petrochemical products declined 1% to -19% mom. HDPE and PP declined 2.5% mom, 5.5% mom, respectively. Benzene increased 3.3% mom while urea was up 1.8% mom.
    • In June 2019, the PP-propane spread increased 3.3% mom to US$623, while the PP-naphtha spread remained flat  mom at US$569. The HDPE-propane spread increased 3.0% mom to US$550.
    • QTD, the average PP-propane spread declined 7.7% qoq (-20.7% yoy) to US$596, while the PP-naphtha spread remained flat qoq (-5.2% yoy) at US$562.