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