Net sales of petrochemical businesses in 2023 were Baht 53,376 million being down by Baht 17,026 million or by 24% from that last year. This was mainly because sales volume decreased by 165,000 tons or by 10% and average selling prices decreased by 14%. The lower sales volume was mainly from PP in Olefins group. The proportion of domestic and export of petrochemical products in 2023 was 65% and 35%, respectively and most of the exported products were shipped to Singapore, Hong Kong and India. 1.2.4 The spread between key petrochemical products and raw material price Average price (USD/MT) 2023 2022 %Change Naphtha 649 785 (17%) Olefins HDPE - Naphtha 474 457 4% PP - Naphtha 366 407 (10%) Aromatics BZ - Naphtha 249 246 1% TOL - Naphtha 238 175 36% MX - Naphtha 286 239 20% Styrenics ABS - Naphtha 634 901 (30%) PS (GPPS) - Naphtha 570 731 (22%) The spread between petrochemical products and raw material price The spread between Polyolefins group and Naphtha price • HDPE Spread - Higher: HDPE - Naphtha spread in 2023 was USD 474 per ton increasing by 4% from that in 2022 of USD 457 per ton as in 2Q23, HDPE supply tightened amid annual maintenance shutdowns, mainly from Middle East producers. However, the demand for downstream pipe sectors lagged due to global economic downturn and high interest rates. Additionally, China’s property crisis dampened the construction industry. • PP Spread - Lower: PP - Naphtha spread in 2023 was USD 366 per ton decreasing by 10% from that in 2022 of USD 407 per ton owing to the ongoing sluggish demand, partly due to economic uncertainty caused by Russia-Ukraine war, a conflict between Israel-Hamas and persistently high interest rates. Meanwhile, the supply in the market, especially in China, represented a continuous increase, although some producers reduced their production capacity to align with the demand. The spread between Aromatics group and Naphtha price • TOL and MX Spread - Higher: In 2023, Toluene - Naphtha spread and Mixed Xylene - Naphtha spread were USD 238 per ton and USD 286 per ton respectively rising by 36% and 20% accordingly when compared with those in 2022. This was mainly caused by improving PX market sentiments, which resulted in the increasing demand for Toluene and Mixed Xylene, the major raw materials being used in PX production. 177 Management Discussion and Analysis (MD&A) 56-1 ONE REPORT 2023
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