Daily Chemical Reaction
US Polymer Market Beach Party in Motion – The Risk of An Unhappy Ending Remains High
- The surge in Asia ethylene values amid curtailed global operating rates is now a well-known story, but we find few highlighting the likelihood that the story will reverse as supply returns – we discuss with HDPE chain exhibits.
- USGC polyethylene reflects outsized price strength relative to US ethylene, and this spread holds most of the profit margin for US integrated producers – we discuss the possibility that it will contract within 4-7 months and deliver profit headwinds for US producers, such as LyondellBasell and CP Chem.
- Other items of note today range from Asia naphtha support relative to Brent Crude, to US caustic movements, to more industry restructurings.
See PDF below for all charts