Karachi: Geopolitical tensions in the Middle East have continued to influence global chemical markets, resulting in volatile energy prices, trade flows, and logistics. The ongoing geopolitical risks pose uncertainties for the availability of feedstocks, freight costs, and regional demand. Normalization in the market conditions largely depends on the easing of these tensions.

According to JS Global, PVC-ethylene margins saw improvement in August 2026, driven by a slight rise in ethylene prices, while PVC prices experienced sharper increases amid crude oil volatility and renewed concerns over feedstock availability. In China, low operating rates among carbide-based PVC producers, due to weak demand and margins, provided support to ethylene-based PVC producers. Additionally, PTA-PX margins improved marginally during the month, with an approximate 8% week-on-week increase in the spread, supported by higher PTA prices, which were recorded at $860 per ton.