Daily Chemical Reactions

Something’s Gotta Give – Asia Monomer Values Are Misaligned With Derivative Fundamentals
May 29, 2020
Commodities Mentioned:
Oil, Natural Gas, Ethylene, Propylene, Polyethylene, Polypropylene, Polyvinyl Chloride, Acetic Acid, Methanol, Butadiene, Styrene
Companies Mentioned:
Dow, LyondellBasell, CP Chem, ExxonMobil, SABIC, Sinopec, Westlake, OxyChem, Shintech, Formosa, Sherwin Williams, Akzo Nobel. PPG, Braskem, Celanese

Daily Chemical Reaction

Something’s Gotta Give – Asia Monomer Values Are Misaligned With Derivative Fundamentals

Key Points:

  • Asia polymer price trends on average do not support the industry case that recent upticks in ethylene and propylene are demand driven, per our model.
  • We take a positive view of PVC relative to other polymer chains (notably PE & PP), find Asia propylene values decline WoW from an 11-week high amid greater supply, and note VAM as another ethylene derivative chain unable to push through higher raw material costs due to lackluster demand.
  • Other items of note today range from oil-and-gas commentary, to Dow comments on the PE markets and the need for clarity on US/China trade to invest in megaprojects, to Nissan motor estimated vehicle production cuts.

See PDF below for all charts referenced

Client Login

Learn About Our Subscriptions and Request a Trial

Contact us to gain full access and experience our services!

Request a Free Trial

Archives