Daily Chemical Reactions

Not Aggressive Enough on Propylene & Other Freaky Friday Items Worth Note
March 13, 2020
Commodities Mentioned:
Propylene, Propane, Ethane, Polyethylene, Polypropylene, Naphtha, Cobalt
Companies Mentioned:
Sherwin Williams, PPG, Akzo, Covestro, Arkema, Sekisui, BASF, LyondellBasell, ExxonMobil, Braskem, DOMO Chemicals, Sasol, Lotte Chemical, Pemex, Tesla, McDermott

Daily Chemical Reaction

Not Aggressive Enough on Propylene & Other Freaky Friday Items Worth Note

Key Points:

  • USGC propylene markets loosened faster than we anticipated this week – we provide a framework for our propylene market views into 2Q20 and note winners and losers from a downward trend in avg. global prices.
  • Three corporate items target Sasol, DOMO Chemicals & Lotte Chemical; Sasol will host a conference call next week, we see mgmt. comments targeting potential divestments to increase liquidity as a hot topic – distress seller!
  • Other items of note range from Pemex/Braskem ethane, to a China vehicle sales nosedive in February that implies global 1Q20 market headwinds.


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