Daily Chemical Reaction
When The Tide Rolls In – Supply Issues More Than Offset Demand To Support US Chemical Prices
- Global supply/demand mismatches because of the COVID-19 pandemic persist and are the key drivers of commodity chemical price volatility today – we view the US propylene market as a case in point and discuss its recent surge in price.
- We follow our views of the US July polyethylene (PE) contract setting yesterday with news of further producer nominated price hikes for August, likely an attempt to spur urgency to secure a July increase (before the wheels fall off?).
- Other items today range from a delayed Reliance-Aramco deal, to the US ethylene spot price premium at Mt. Belvieu, to rising US chemical rail traffic.
See PDF below for all charts and tables