Lotte headed for better H2 with higher PE prices

For FY20, Lotte Chemical Titan should be seeing its worst year, according to KAF, and thereafter be on a gradual path to recovery starting 2021 with spreads stabilising at US$400-US$500 per tonne levels.

PETALING JAYA: The rising price of polyethylene (PE), which has recovered to US$900 per tonne from the weak levels observed during the second quarter, will lead to a stronger second half for Lotte Chemical Titan Holding Bhd.

According to KAF Research, the spread of PE-to-naphtha (the raw material used to produce its chemical products) has expanded close to US$600 per-tonne-level in September 2020, compared with US$480-US$520 per tonne back in the second quarter of 2020.