Daily Chemical Reactions

2Q20 Updates Beat, Positive 2H Outlooks Repeat, & “Debbie Downer” Views Lack Needed Appreciation
July 17, 2020
Commodities Mentioned:
Propylene, Polypropylene, Brent Crude, Naphtha, Natural Gas, Ethylene, Polyethylene, N-Propanol, Styrene Butadiene Rubber, Butyl Rubber, Natural Rubber, Methanol
Companies Mentioned:
PPG, Axalta, Alpek, Braskem, LyondellBasell, Total, CP Chem, ExxonMobil, Ineos, Ashland, Shell, Sensient, Daelim Industrial, Petronas, Reliance

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 

Contact us to subscribe to our services and gain access to full content.