The Weekly Catalyst
Global Chemical Update – Kick Start My Heart
- We find upward momentum in polymer markets despite a recent cost curve flattening, falling Asia ethylene and sizable production upticks in the wings – the set-up reminds of the Motley Cru video “kick start my heart” that cheers on drivers to stomp the gas/push limits despite the likely wreck ahead.
- We discuss the widening PE-to-ethylene spreads globally, recent upticks in US propylene and benzene, and the WoW drop in US methanol spot prices.
- It is increasingly hard to reconcile this increased polymer “blood flow” with the sharp resurgence in COVID and the more conservative macro forecasts that it is generating – note the IEA discussion from our Sunday Recap
See PDF below for all charts and tables