Equity Analyst focused on Korea Stock Market

Thomas Yi

Thematic (Sector/Industry)

Polyethylene terephthalate (PET: bottle grade) spreads have skyrocketed since April, setting five consecutive weekly highs.We see three reasons for the sustained strength in PET spreads: (1) Force majeure events in Europe on May, 2018, (2) Recycling ban in China since early 2018, (3) Mossi Ghisolfi Group bankruptcy at end-2017Leading global manufacturers of PET resin (bottle grade) obviously will benefit: <a href="https://www.smartkarma.com/entities/18105" target="_blank" data-smartkarma-citation="entities:18105:1">Indorama Ventures Pcl (IVL TB)</a>, M&amp;G Chemicals (unlisted; Luxembourg), Equipolymers (unlisted; Germany), <a href="https://www.smartkarma.com/entities/24717" target="_blank" data-smartkarma-citation="entities:24717:1">Alpek SAB de CV (ALPEKA MM)</a>, <a href="https://www.smartkarma.com/entities/17882" target="_blank" data-smartkarma-citation="entities:17882:1">Jiangsu Sanfangxiang Industry Co.Ltd, (600370 CH)</a>, <a href="https://www.smartkarma.com/entities/4878" target="_blank" data-smartkarma-citation="entities:4878:1">Tongkun Group Co Ltd A (601233 CH)</a>, <a href="https://www.smartkarma.com/entities/3653" target="_blank" data-smartkarma-citation="entities:3653:1">Hengyi Petrochemical Co A (000703 CH)</a>, <a href="https://www.smartkarma.com/entities/11448" target="_blank" data-smartkarma-citation="entities:11448:1">Far Eastern New Century Corp (1402 TT)</a>, <a href="https://www.smartkarma.com/entities/10740" target="_blank" data-smartkarma-citation="entities:10740:1">Nan Ya Plastics Corp (1303 TT)</a>, <a href="https://www.smartkarma.com/entities/198" target="_blank" data-smartkarma-citation="entities:198:1">Reliance Industries Ltd (RIL IN)</a>, <a href="https://www.smartkarma.com/entities/8757" target="_blank" data-smartkarma-citation="entities:8757:1">Lotte Chemical Corp (011170 KS)</a>, and <a href="https://www.smartkarma.com/entities/13428" target="_blank" data-smartkarma-citation="entities:13428:1">TK Chemical Corp (104480 KS)</a>

Polyethylene terephthalate (PET: bottle grade) spreads have skyrocketed since April, setting five consecutive weekly highs.We see three reasons for the sustained strength in PET spreads: (1) Force majeure events in Europe on May, 2018, (2) Recycling ban in China since early 2018, (3) Mossi Ghisolfi Group bankruptcy at end-2017Leading global manufacturers of PET resin (bottle grade) obviously will benefit: Indorama Ventures Pcl (IVL TB), M&amp;G Chemicals (unlisted; Luxembourg), Equipolymers (unlisted; Germany), Alpek SAB de CV (ALPEKA MM), Jiangsu Sanfangxiang Industry Co.Ltd, (600370 CH), Tongkun Group Co Ltd A (601233 CH), Hengyi Petrochemical Co A (000703 CH), Far Eastern New Century Corp (1402 TT), Nan Ya Plastics Corp (1303 TT), Reliance Industries Ltd (RIL IN), Lotte Chemical Corp (011170 KS), and TK Chemical Corp (104480 KS)

Perfect Storm: Skyrocketing PET Spreads...What’s Happening and Who Benefits?

China

TongKun Group Co., Ltd. develops, produces and sells polyester and Terylene filament.  The Company also invests in real estate, finance, business trade and education businesses.

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Perfect Storm: Skyrocketing PET Spreads...What’s Happening and Who Benefits?

Polyethylene terephthalate (PET: bottle grade) spreads have skyrocketed since April, setting five consecutive weekly highs.We see three reasons for...

Thomas Yi