The Weekly Catalyst
Global Chemical Update – The Big Pricing (and Supply?) Catch Up
Key Points:
- Global spot markets display outsized strength in upstream/basic chemical values in the US and NW Europe relative to Asia, and global downstream price support suggests a demand pull is underway across all regions and that the supply response is as expected.
- Our confidence has increased that significant global spot market volatility is likely for most of 2H20 before supply chains broadly normalize in 1H21. In the same way that supply cutbacks overshot in Q2 we would expect supply increases to overshoot in Q3.
See PDF below for all charts and tables
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