Daily Chemical Reactions

No One-Size-Fits-All Market – Propylene Strength, Acetyl Price Hikes & Mixed Chemical Flows
July 9, 2020
Commodities Mentioned:
Propylene, Polypropylene, Ethane, Ethylene, Polyethylene, Oil, Natural Gas, Acetic Acid, Methanol
Companies Mentioned:
LyondellBasell, Braskem, Axalta, PPG, Sherwin Williams, Celanese, Covestro, OMV

Daily Chemical Reaction

 

No One-Size-Fits-All Market – Propylene Strength, Acetyl Price Hikes & Mixed Chemical Flows

Key Points:

  • The USGC propylene market has surged higher – we discuss a few major differences between the driving propylene strength relative to USGC ethylene despite both markets seeing similar percentage upticks since early July.
  • We take a cautious view of the propylene market in late 2020/early 2021 as production returns to normal and expect PGP-to-PP spreads to remain under pressure – we view this as a headwind for most US PP producers.
  • Other items today range from Celanese acetyl chain price hikes, to LPG moving into ethylene cracker feed slates abroad, to reshoring supply chains.

See PDF below for all charts 

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