Karachi: The global petrochemical industry is experiencing ongoing volatility as the conflict in the Middle East continues into its fourteenth week, affecting key supply routes and causing fluctuations in raw material prices. Vessel traffic through the critical Strait of Hormuz remains below pre-conflict levels, impacting the availability of naphtha, a crucial feedstock component.

According to JS Global, naphtha prices have corrected by 15% from recent highs but remain 32.4% higher compared to the previous year, resulting in elevated costs for ethylene-based producers, particularly EPCL. Despite ongoing feedstock constraints, the price of ethylene-based PVC has decreased by $310 per ton, or 27%, to approximately $850 per ton in just over two months. This decline is largely attributed to increased production of carbide-based PVC in China, which has led to a 26% week-on-week increase in PVC-ethylene spreads.

Furthermore, the press release highlights a retreat in PTA prices by approximately 8% to $870 per ton since March 2026. This decrease reflects the downward movement in upstream PX prices, which have fallen by 9% to $1,165 per ton during the same period. As a result, PTA-PX margins have seen a 14% improvement, providing some relief to producers amid the challenging market dynamics.