Weekly Thematic

What Happens To The Spot Markets?
May 14, 2020
Companies Mentioned:
BASF, Dow, CPChem, VW, Nova, Sasol, BASF, Total, Indorama, Westlake, LyondellBasell, ExxonMobil, Shell
Commodities Mentioned:
Subjects Covered:
Incremental Margins, Shutdown Economics, Price and Margin Volatility, An Alternative For Ethylene - A Shortage, Gasoline Demand and it Impact on Ethylene Economics

C-MACC Perspectives No 14

What Happens To The Spot Markets?

  • A slow recovery for Chemicals will likely cause mismatches in production versus demand, creating price volatility and at times spot markets could reflect very incremental thinking, resulting in “acceptable” losses rather than plant closures.
  • Recently, we have seen significant price and margin volatility all over the world as supply imbalances create short-term anomalies; we expect these to continue until the markets find a balance – in our view these are all trading opportunities.
  • We will continue to highlight markets with pockets of volatility developing in our research – let us know your questions or areas of specific interest.

See PDF below for all charts referenced

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