Chemical Reaction
2Q20 Updates Beat, Positive 2H Outlooks Repeat, & “Debbie Downer” Views Lack Needed Appreciation
Key Points:
- 2Q20 results continue to exceed low market expectations and generally contain optimistic 2H20 outlooks – we discuss our relatively more cautious views as the macro outlook deteriorates outside China.
- Companies in general appear to have been too pessimistic for 2Q – we see risk that they are too optimistic for 3Q
- We discuss the PPG and Alpek 2Q20 reports as it relates to propylene and derivative (coatings, polymer) trends – 3Q20 margin pressure likely QoQ.
- Other items today range from the Ashland 2Q20 pre-announcement, to US polyethylene strength relative to Asia, to rubber market price declines WoW.
See PDF below for all charts and tables