Daily Chemical Reactions

Time Is (Not) On Our Side – Loosening Asia Markets & Cost Curve Developments Dial The Wake Up Call
August 14, 2020
Commodities Mentioned:
Brent Crude, Naphtha, Natural Gas, Ethane, Propane, Ethylene, Propylene, Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC), Acetone, PTA
Companies Mentioned:
Navigator Holdings, Enterprise Products, LyondellBasell, ExxonMobil, CP Chem, Hexion, Huntsman, Olin, Formosa, Indorama Ventures. Map Ta Phut, Shell, Adeka, Zhejiang Petrochemical

Daily Chemical Reaction

 

Time Is (Not) On Our Side – Loosening Asia Markets & Cost Curve Developments Dial The Wake Up Call

 

Key Points:
  • We find mounting evidence of loosening Asia commodity chemical markets that suggests US export prices will face downward pressure – the global cost curve setting, the return & start-up of new global production and still dicey end-use demand are dialing the wake-up call for US producers. Take notice.
  • We discuss takeaways from 2Q reports (e.g. Hexion, Navigator Holdings), and flag a few production issues (Formosa, Indorama, Map Ta Phut, Shell).
  • Other items worth note today range from the EIA ethane forecast to our discussion of Asia ethylene prices relative to USGC contract and spot values.

See PDF below for all charts

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