Korean petrochemicals rebound as Middle East war lifts naphtha inventory values

Korea’s struggling petrochemical industry posted a short-term rebound as the Middle East war drove naphtha prices higher. The price increase led to revaluation gains on existing inventories, and Lotte Chemical reported operating profit of 73.5 billion won. LG Chem and Hanwha Solutions also improved, while NCC operating rates in Yeocheon and Daesan were said to have risen. Still, the improvement is being viewed less as a full industry recovery than as a temporary effect from costs and inventory valuation. The sector is also being urged to improve fundamentals through restructuring. Source: mk.co.kr