Commodity and Cyclical Plays

[Dhruv_Galada]

Phthalic Anhydride looks like another sector worth tracking currently. Have done some work on IG Petrochemicals (Market leader). Would appreciate any thoughts.

I G Petrochemicals Ltd

Things seem to be getting interesting here - one of the lowest cost producers (IG Petro) in a cyclical industry has now posted a loss at the EBITDA level. A further reduction in spreads would lead to shut-down of capacities in Taiwan, Korea & China. [image] Gross/EBITDA margins are at their lowest in recent history - main reason being… [image] Phthalic Anhydride-Orthoxylene (PAN-OX) spreads have almost come down to the company’s conversion cost of ~$85/ton. Further, Maleic Anhydride prices …