Powering life with Future Energy and Beyond slide image

Powering life with Future Energy and Beyond

Naphtha Aromatics Olefins 2022 Petrochemical Outlook Price Y2021 HDPE 1,182 $/Ton 1,600 PP Film 1,321 1Q2022 1,330 1,387 2Q2022(E) 2022(E) 1,420 - 1,440 1,430 - 1,450 1,355 - 1,405 1,375 - 1,425 1,400 1,200 1,000 HDPE CFR SEA PP Film CFR SEA - 800 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Price Y2021 $/Ton BZ 914 PX 859 1Q2022 1,073 1,087 2Q2022(E) 1,160 - 1,180 1,180 - 1,200 2022(E) 1,118 - 1,168 1,132 - 1,182 1,200 1,000 800 000000 BZ FOB Korea PX CFR Taiwan 600 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Price $/Ton Naphtha MOPJ Y2021 646 1Q2022 877 2Q2022(E) 922-942 2022(E) 890-940 1,000 800 600 400 1Q21 2Q21 Source: PTT, PRISM Petrochemical Rolling as of April 2022 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 ptt Olefins - + Strong feedstock cost to support prices amid ongoing geopolitical tension between Russia-Ukraine + Tighten Asian supply from production cuts according to squeezed margins at standalone units and seasonal turnarounds in 2Q22 + Expected downstream demand recovery from easing lockdowns across major cities in China within late 2Q22 Competitively-priced Chinese cargoes to dampen SEA sentiment - Incoming additional Asian capacities from SEA and NEA, especially China, throughout 2022 Aromatics + Strong feedstock cost to support prices and Lower Asian supply as mentioned + Expected SM/PTA downstream demand recovery from easing lockdowns as mentioned + Opened benzene Asia-US arbitrage opportunities and Low Chinese inventories to boost up sentiment Elevated Chinese PX inventories and uneconomical downstream PTA margins pressure on markets Incoming additional Asian capacities as mentioned Naphtha + Expected petrochemical demand recovery due to lower cracker maintenance and easing lockdowns + Improved naphtha blending demand ahead of the US driving season in 3Q22 + Additional demand from petrochemical plants expected to start throughout 2022 26
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