Petrochemicals begin to recover in Q3 2026; watch SCGC-PTTGC deal, clarity expected by end of September

Thunhoon··THCN·Read original
3▲2 ▼0Impact / 5
Summary · why it matters

The petrochemical business is starting to show signs of recovery in the third quarter of 2026, supported by buyers beginning to build up inventory ahead of the high-demand season. Although global demand remains under pressure from China and from Middle East conflicts that are affecting feedstock costs, the oversupply situation is beginning to ease significantly. Meanwhile, the restart of the olefins plant of Rayong Olefins Company Limited under SCC is seen as a positive signal and helps support the major maintenance shutdown plan for the MOC plant later this year. The key issue to watch is the progress of the feasibility study on cooperation between SCGC and PTTGC in the olefins and polyolefins business, which is expected to become clear by the end of September. If synergies materialise, they would boost competitiveness and earnings in the period ahead. The research team assigns a fair value of 310 baht per share for SCC and 42 baht per share for PTTGC.

Impact on assets 2

Materials▲ · 1 stocks
Climate Adaptation & Water▲ · 1 stocks

Off-coverage companies 3

SCG Chemicals Public Company Limited (SCGC)Private▲ Positive
Capitalrelevance

Feasibility study on SCGC-PTTGC cooperation in olefins/polyolefins, if synergies materialise, would boost competitiveness and earnings.

Rayong Olefins Co., Ltd.Private▲ Positive
Supplyrelevance

Restart of Rayong Olefins' olefins plant is seen as a positive signal supporting the MOC plant maintenance shutdown plan.

Map Ta Phut Olefins Company LimitedPrivate▲ Positive
Supplyrelevance

Rayong Olefins restart supports the major maintenance shutdown plan for the MOC plant later this year.

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