Daily Chemical Reactions

Odd Price and Margin Moves Everywhere, But the Cost Curve Frames The Fundamental Path
May 13, 2020
Commodities Mentioned:
Crude, Natural Gas, Naphtha, Ethane, Ethylene, Polyvinyl Chloride, Caustic Soda, Methanol, Acetic Acid, Polyethylene
Companies Mentioned:
Nova, CP Chem, Westlake, LyondellBasell, Sasol, Indorama, Olin, OxyChem, Formosa, Shintech, Celanese, Ube Industries, ICL, Kansai Paint, Brenntag, Equate, Ferro

Daily Chemical Reaction

Odd Price and Margin Moves Everywhere, But the Cost Curve Frames The Fundamental Path; Mid-Week Observations

Key Points:
  • We highlight interesting commodity movements mid-week that range from Asia ethylene strength to widening China acetic-to-methanol spreads. We see this as noise, with consumer spending and the cost curve the real signal.
  • We provide our takeaways from several corporate releases (Ube Industries, ICL, Kansai Paint, Brenntag, Equate and Ferro).
  • Other items of note range from oil-and-gas commentary, to European integrated PE margin compression, to rising Europe EV market share.

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