Karachi: The ongoing conflict in the Middle East is causing significant disruptions in global chemical markets, impacting energy supplies, trade flows, logistics, and demand dynamics. A normalization of petrochemical trade and recovery of supply chains is expected to take several months and is dependent on the resolution of the conflict.

According to JS Global, PVC-Ethylene margins have been consistently under pressure, remaining below US$300 per ton as of July 30, 2026. This is attributed to an 11 percent month-on-month increase in ethylene prices, reaching approximately US$925 per ton, while PVC prices have remained relatively stable. Consequently, the PVC-ethylene spread has decreased by 2 percent week-on-week.

Similarly, PTA-PX margins have also faced pressure, with the spread narrowing by approximately 6 percent week-on-week. This was due to a more pronounced increase in PX prices, which climbed to approximately US$1,140 per ton in July 2026, as opposed to PTA prices, which rose at a slower rate to around US$860 per ton.

The decline in petrochemical margins poses challenges for the industry, affecting companies such as EPCL, LOTCHEM, and LCI. The industry's outlook remains contingent on geopolitical developments in the Middle East and their impact on global trade and energy markets.