Daily Chemical Reactions

A Change Is Gonna Come – Propylene, Methanol & Dreams Of Continued Price (& Margin) Support
August 18, 2020
Commodities Mentioned:
Crude, Ethane, Propane, Natural Gas, Ethylene, Propylene, Polyethylene, Polypropylene, Polyvinyl Chloride, Polycarbonate, Caustic Soda, Lithium, Acetone, Bromine, Acrylonitrile
Companies Mentioned:
Dow, BASF, Braskem, LyondellBasell, Eastman Chemical, PPG, Axalta, Sherwin Williams, Arkema, Methanex, SCC, Natgasoline, Celanese, Mitsui Chemicals, Covestro, Formosa Plastics, Westlake, Shintech, OxyChem, Gurit, Hexion, Odebrecht, Rongsheng Petrochemical, Sasol, SQM, ICL, Lanxess, Albemarle

Daily Chemical Reaction

 

A Change Is Gonna Come – Propylene, Methanol & Dreams Of Continued Price (& Margin) Support

 

Key Points:

  • We discuss US propylene and US methanol – two commodities exhibiting US spot market strength into mid-3Q but potentially set to face slowing momentum from here and ultimately price reversals as supply responds.
  • We flag and discuss multiple corporate items in the news (e.g. Covestro 3Q update, Odebrecht & Braskem news, Formosa FM declarations, RongSheng Petrochemical views, Sasol and Gurit 2Q20 results, among other items).
  • Other items worth note today include forecasted increases in China LPG use amid new petrochemical plant start-ups, improvement in China elemental bromine spot prices and US vehicle inventory declines/destocking in July.

See PDF below for all charts

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