Brokers flag IVL, PTTGC, TOP, SCC as standouts on petrochemical spread recovery and lower naphtha costs

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Summary · why it matters

Two brokers flag energy and petrochemical stocks as standouts. Bualuang Securities recommends switching out of refinery stocks after prices already reflected high refining margins, and moving into petrochemicals, which remain laggards, highlighting IVL and PTTGC on a trend of tight supply in late 2026. Meanwhile, Krungsri Securities recommends IVL, TOP, PTTGC and SCC on recovering product spreads. Singapore refining margins, or GRM, rebounded sharply by 8.22 US dollars per barrel week-on-week to 6.78 US dollars per barrel, driven by shutdowns at some refineries in North Asia and export restrictions by China and Russia. On the petrochemical side, most product spreads improved on lower naphtha costs tracking oil prices, pushing the ethylene spread up to 286 US dollars per tonne, propylene to 311 US dollars per tonne, HDPE to 436 US dollars per tonne and PP to 541 US dollars per tonne. Within petrochemicals, only the PET chain, namely IVL, received positive factors. The house therefore maintains a BULLISH call on the energy and petrochemical sector, with top picks of TOP, SCC and PTTGC.

Impact on assets 4

Critical Materials & Supply Chain▲
Indorama Ventures PCL
IVL
▲ PositiveDemandrelevance

Brokers highlight IVL as a top pick on recovering petrochemical spreads and positive PET chain factors.

Materials▲
Climate Adaptation & Water▲
Energy Transition & Power Demand▲