Light olefins companies are involved in the production of key petrochemicals, including ethylene and propylene. These compounds serve as building blocks for various chemical products, including plastics, synthetic fibers, and rubber. Companies in this sector contribute to the production of essential materials for a wide range of industries.
Light Olefin Market
September 2023- Fitch Ratings (Thailand) has revised the Outlook on PTT Global Chemical Public Company Limited's (PTTGC) National Long-Term Rating to Negative, from Stable, and has affirmed the rating at 'AA(tha). Fitch has also affirmed the senior unsecured rating at 'AA(tha)' and the National Short-Term Rating at 'F1+(tha)'. The Negative Outlook reflects the risk that EBITDA net leverage, which we forecast at 5x-6x through 2024, will remain above 3.5x - the level above which we may take negative rating action - in the medium term. The company's earnings have been significantly weaker during the last 12 months than we had expected amid difficult petrochemical market conditions. We believe petrochemical product spreads will stay weak over the next year on lower demand and new petrochemical capacity supply. The rating remains supported by a two-notch uplift from PTTGC's Standalone Credit Profile (SCP) for parental support.
June 2023- Shares in Satellite Chemical advanced today after the Chinese polymer materials producer said it is investing CNY25.7 billion (USD3.6 billion) to construct an industrial park for alpha olefins, a high-end new material used in synthetic lubricants, motor oils, and other products. Satellite Chemical's share price [SHE:002648] closed flat at CNY14.79 (USD2.07). Earlier in the day, it climbed 3.7 percent to CNY15.35. The industrial park, which will be located in Lianyungang, eastern Jiangsu province, will make the equipment to produce the light hydrocarbon raw materials used in alpha olefins as well as other devices, the Jiaxing, southeastern Zhejiang province-based company said. Once fully completed, it should have an annual capacity of 2.5 million tons of light hydrocarbon raw materials a year and an annual output value of CNY48 billion (USD6.7 billion).
The prominent market players of the global light olefins market are Royal Dutch Shell (Netherlands), Reliance Industries Limited (India), Honeywell International Inc. (U.S.), DowDuPont (U.S.), Gazprom (Russian Federation), BASF SE (Germany), PetroChina (China), China Petro & Chemical Corp (China), Exxon Mobil Corporation (U.S.), and Saudi Arabian Oil Co. (Saudi Arabia).
Light olefin market Market Highlights:
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