Daily Chemical Reaction
The China Demand Pull, Cost Curve Developments & More USGC Polymer Price Hike Nominations
- 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