Commodities Mentioned:
Oil, Natural Gas, Ethane, Naphtha, Ethylene, Propylene, Polyethylene, Polypropylene, Acetic Acid, Paraxylene, MEG, PTA
Companies Mentioned:
Chesapeake, LyondellBasell, ExxonMobil, Braskem, Axalta, Dow, BP, Ineos, Shell, Pemex, Enterprise, Marubeni, Eni, NextChem
Daily Chemical Reaction
All Along The Watchtower – Price Strength Apparent, Volume Anything But Transparent
Key Points:
- US Natural Gas prices spike higher amid production concerns and point to support for a flatter petrochemical cost curve – we discuss the market.
- Two other primary items to think about today: a) polyethylene (PE) price support in China a mix of logistical issues and production constraints; and b) US polymer-grade propylene contracts step higher in June and polypropylene nominations arrive for prices hikes – we model tighter 3Q PP-to-PGP spread.
- Other items of note today range from oil-and-gas news, to views on BP, Ineos, Shell & Enterprise/Marubeni, to the ACC data posted this morning.
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