Daily Chemical Reactions

The China Demand Pull, Cost Curve Developments & More USGC Polymer Price Hike Nominations
July 21, 2020
Commodities Mentioned:
Brent Crude, Natural Gas, Naphtha, Ethane, Ethylene, Polyethylene, PVC, Polyethylene, Silicones, Polysilicon
Companies Mentioned:
Westlake, Shintech, OxyChem, Formosa Plastics, BHP, Celanese, Perstorp, Chevron, Noble Energy, Givaudan, Elkem, Advanced Petrochemicals, Occidental, BP, OQ Chemicals, GCL-Poly, Wacker Chemie, Dow, DuPont, Shin-Etsu, Momentive, Daicel, Lotte Chem, Coca-Cola

Daily Chemical Reaction

The China Demand Pull, Cost Curve Developments & More USGC Polymer Price Hike Nominations

Key Points:

  • Improving China demand has been noted across multiple 2Q20 reports and we discuss 2H20 optimism for its strength relative to other markets.
  • US Natural Gas values reflect weakness relative to Brent Crude WoW (a potential plus for US petrochemical margins), and we find both domestic spot and export support for a US PVC contract uptick MoM in July, but less support for an August hike.
  • Other items today range from multiple material sector corporate reports (BHP, Celanese, Elkem, Perstorp, Givaudan, etc.), to Asia positives for spot methanol, to several global production issues worth consideration.

See PDF below for all charts

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