Daily Chemical Reactions

When The Tide Rolls In – Supply Issues More Than Offset Demand To Support US Chemical Prices
July 16, 2020
Commodities Mentioned:
Propylene, Polypropylene, Brent Crude, Naphtha, Natural Gas, Ethane, Ethylene. Polyethylene, Benzene
Companies Mentioned:
Dow, Axalta, PPG, Braskem, LyondellBasell, CP Chem, ExxonMobil, Ineos, Total, Reliance, PetroChina, Borealis, Sherwin Williams, Aramco, Evonik, Lanxess, MISC Bhd, Zhejiang Satellite Petrochemical, Air Liquide, Enterprise Products, Nova Chemicals

Daily Chemical Reaction

 

When The Tide Rolls In – Supply Issues More Than Offset Demand To Support US Chemical Prices

Key Points:

  • 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 

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