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Refining/Chemical:PVC And Aromatics Chain Strength Offers Great Investment Opportunity

Summary

Refining margins slightly contracted WoW but were still stable. Upwardly adjusted oil demand forecasts are positive.

The Lunar New Year holiday led to corrections of major synthetic resins but the corrections will be limited given scheduled maintenance and solid demand.

Benzene chain strength (BPA, MDI, caprolactam) to continue. Kumho Petrochemical and Capro offer a good entry point.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.