KUALA LUMPUR: The earnings outlook for Lotte Chemical Titan Holding Bhd, which provides olefins and derivative products, is expected to hinge on the direction of naphtha prices.
CGS-CIMB Research, in a report, noted that naphtha prices have moderated slightly in April to US$905 (RM3,939) per tonne from US$993 (RM4,323) per tonne in March.
“This has allowed polymer-naphtha spreads to improve on a month-on-month basis. We think that it is too early to celebrate, as the April naphtha price is still higher than the first quarter of 2021’s average of US$864 (RM3,761) per tonne.
...