The spread between Polystyrenics group and Naphtha price • ABS Spread - Lower: ABS - Naphtha spread in 2023 was USD 634 per ton decreasing by 30% when compared to USD 901 per ton in 2022. This was because demand slowed in accordance with global economic conditions, particularly in China, where the property crisis affected confidence of households and businesses. As a result, consumer spending was stagnant, such as those for electrical appliance products. Additionally, the new 1.2.5 Product to Feed Margin (Product to Feed: PTF)* Net Stock Gain/ (Loss) Market GRM Net Stock Gain/ (Loss) Market GRM (Unit: USD/bbl) 6,493 (1,418) 1,621 3,783 2,710 3,039 2.89 0.66 1.21 1.68 (0.58) 1.24 (Unit: MB) Remark : * Included Trading business (iPolymer) and New S-Curve business (Rakpasak) Accounting PTF Accounting PTF 2566 2565 2,103 1,834 Olefins Group 936 1,949 Aro & Styrenics 3,039 3,783 Market PTF 2566 2565 0.85 0.81 Olefins Group 0.39 0.87 Aro & Styrenics 1.24 1.68 Market PTF capacity obtain a significant impact to the market when compared to the demand. • PS Spread - Lower: PS - Naphtha spread in 2023 was USD 570 per ton decreasing by 22% when compared to USD 731 per ton in 2022 owing to the global economic slowdown, which did not show clear signs of recovery. Most end-product manufacturers purchased primarily based on necessity or upon receiving orders to avoid excessive stockpiling towards the year end. The Market Product to Feed Margin (Market PTF) in 2023 was Baht 3,039 million or USD 1.24 per barrel declining by Baht 744 million or USD 0.44 per barrel from that last year. This was mainly because Styrenics product spreads were down following global economic slowdown that curbed the demand for end products, particularly those in electrical and electronics appliances. The company obtained a net inventory loss of Baht 1,418 million or USD 0.58 per barrel comprising of a stock loss of Baht 1,540 million against a reversal on NRV of Baht 122 million. The aforementioned figures led to the Accounting Product to Feed Margin (Accounting PTF) equaling Baht 1,621 million or USD 0.66 per barrel decreasing by Baht 4,872 million or USD 2.23 per barrel from that in the previous year. In 2023, the Market PTF was Baht 3,039 million being down by Baht 744 million, YoY, as Styrenics product spreads were down. 178 Management Discussion and Analysis (MD&A) IRPC Public Company Limited
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