Daily Chemical Reactions

Rising Relative Costs, Slowing Price Momentum & High Expectations – We Maintain A Cautious View  
August 19, 2020
Commodities Mentioned:
Naphtha, Crude, Ethane, Natural Gas, Ethylene, Propylene, Polyethylene (PE), Polypropylene (PP), Methylene Diphenyl Diisocyanate (MDI), Butanediol (BDO), Caustic Soda, Base Oils
Companies Mentioned:
Dow, LyondellBasell, CP Chem, ExxonMobil, Braskem, Formosa Plastics, Petronas Chemicals, BASF, Idemitsu, Lanxess, Sinopec

Daily Chemical Reaction

 

Rising Relative Costs, Slowing Price Momentum & High Expectations – We Maintain A Cautious View  

 

Key Points:

  • 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

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