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