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 

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