Daily Chemical Reaction
Rising Relative Costs, Slowing Price Momentum & High Expectations – We Maintain A Cautious View
- We discuss the different market factors supporting US polyethylene (PE) and polypropylene (PP) price strength and discuss three charts worth notice.
- We discuss several corporate news items that hit our screen overnight (e.g. Petronas Chemicals, BASF, Idemitsu, Braskem, CP Chem, Dow, Lanxess).
- Other items worth note today include the upward trend in US natural gas and ethane relative to overseas chemical feedstocks (see Ex. #1), the drop-off in US chemical capex in 2020 and the global trend of reshoring production.
See PDF below for all charts