The Weekly Catalyst
Global Chemical Update – Cooking with Blindfolds
- Abnormal regional spot market movements persist WoW, suggesting to us that many global chemical producers are having a difficult time matching production with derivative demand. Our confidence has increased recently that the petrochemical supply chains will not return to normal in 2H20.
- Three spot trends framed and discussed: a) US Refinery Grade Propylene (RGP) surges WoW relative to still rising Polymer Grade Propylene (PGP); b) Methanol prices rise globally, but NE Asia values reflect a greater discount to US levels; and c) USGC PVC prices rise, outpacing Asia values higher WoW
- We restate our view that any producer projecting more than a cautious stance towards the balance of 2020 is taking unnecessary risk.
See PDF below for all charts and tables