Daily Chemical Reactions

Approach High Expectations With Caution
July 24, 2020
Commodities Mentioned:
Brent Crude, Natural Gas, Naphtha, Ethane, Methanol, Ethylene, Propylene, Polyethylene, Polypropylene, Polyurethanes, Mono-ethylene glycol (MEG)
Companies Mentioned:
Dow, LyondellBasell, Westlake, Honeywell, W.R. Grace, Albemarle, Winpak, Air Products, Asian Paints, S-Oil, PetroChina, Sinopec, PTT Global Chemical, Sasol

Daily Chemical Reaction


Approach High Expectations With Caution

Key Points:

  • We advise sector corporates to set more conservative 2H20 expectations than we have seen to date rather than paint a bullish outlook that might require threading-a-needle during a storm. Global polyethylene in particular is likely to be much more amply supplied in 2H20 than it appears today and the chemical industry may just be in the eye of the storm.
  • We provide a few thoughts following the Dow 2Q20 earnings call yesterday and discuss more corporate releases (Honeywell, Winpak, S-Oil, Asian Paints & Air Products) and relevant takeaways for peer producers and suppliers.
  • Other items today range from showcasing our estimated NE Asia MTO profit trends and HDPE price differences between the US and Asia, to the Sasol LDPE restart and Iranian PE flows, to sustainable wool packaging.

See PDF below for all charts

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