Daily Chemical Reactions

Price Hike Initiatives To Likely Face W-Shaped Recovery; Supply Chains Lack Balance
July 28, 2020
Commodities Mentioned:
Naphtha, Ethane, Ethylene, Propylene, Polyethylene (PE), Polypropylene (PP), Polyurethanes (PU), Polyvinyl Chloride (PVC), Maleic Anhydride
Companies Mentioned:
Dow, CP Chem, LyondellBasell, ExxonMobil, RPM, Huntsman, Avery Dennison, Silgan, Winpak, Michelin, BASF, Covestro, Ashland, Elementis, Hanwha, Sasol, Koppers, SABIC, Shin-Etsu, Tokuyama, Westlake, Olin, Chevron, DuPont, Celanese, DSM, Lanxess

Daily Chemical Reaction

 

Price Hike Initiatives To Likely Face W-Shaped Recovery; Supply Chains Lack Balance  

Key Points:

  • We discuss the August polyethylene price hike nominations following a few read-throughs from packaging sector reports and other industry findings. The packaging sector remains strong but there is risk of inventory build.
  • We discuss several relevant 2Q20 reports (e.g. Huntsman, Michelin, RPM, Avery Dennison, Tokuyama & Koppers), and our view generally aligns with the Huntsman call for a “W” shaped chemical sector recovery.
  • Other items worthy of note include news of Hanwha bidding for a stake in Sasol LCCP, three petrochemical facilities targeted for August start-up in China, and India PVC has been abnormally pushed toward China.

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