Daily Chemical Reactions

2Q20 Earnings – Many Risks Being Taken With Outlooks; Supply Chains Far From Normal
July 31, 2020
Commodities Mentioned:
Brent Crude, Natural Gas, Naphtha, Ethane, Propane, Ethylene, Propylene, Polyethylene, Polypropylene, Polyvinyl Chloride, Caustic Soda, Nylon, IPA, Acetone
Companies Mentioned:
Axalta, Dow, LyondellBasell, CP Chem, ExxonMobil, PPG, AdvanSix, Methanex, Celanese, Westlake, W.R. Grace, Albemarle, PQ Group, ICL, Reliance Industries, Total, ConocoPhillips, DuPont, International Paper

Daily Chemical Reaction

 

2Q20 Earnings – Many Risks Being Taken With Outlooks; Supply Chains Far From Normal

Key Points:

  • Early 2Q earnings reports gave outlooks that appeared too optimistic but we find more balance this week – we argue that those setting cautious expectations should see better relative equity performance into 2021.
  • We discuss several sector earnings reports (e.g. AdvanSix, LyondellBasell, W.R. Grace, ICL, PQ Group & Reliance Industries) to close the week.
  • Other items today range from China spot acetone prices retreating after a 1H20 IPA/disinfectant fueled surge, discuss the China PVC and caustic soda price setting and a mixed setting for Albemarle amid a few peer reports.

See PDF below for all Exhibits 

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