Daily Chemical Reaction
The Sultans Of Swing – Cost Curve Steepening Stalls, More Production Waits Down The Hall
- The global petrochemical cost curve steepening that began in April/early May 2020 has come to a grinding halt – a headwind for further price hikes.
- We discuss China polymer price strength WoW, US LDPE start-ups set for 2H20 and our call for USGC spot ethylene support relative to contract levels.
- Other items of note today target a few producer reports announcing “better-than-expected” 2Q20 results that we equate in some cases to watching someone dunk on an 8 foot (instead of a 10 foot) basketball goal (indeed, we find business conditions far from good/back to normal globally). We also add in commentary on Braskem chlor-alkali issues, varying upstream/feedstock trends, PDH and PP industry items of note, and US rail traffic trends.
See PDF below for all charts