Daily Chemical Reactions

Asia Spot Trends Support Increased Supply but also Lower USGC Petrochemical Prices/Margins Ahead
August 21, 2020
Commodities Mentioned:
Brent Crude, Naphtha, Natural Gas, Ethane, Propane, Ethylene, Propylene, Butadiene, Polyethylene (PE), Polypropylene (PP), Vinyl Chloride Monomer (VCM), Polyvinyl Chloride (PVC), Propylene Oxide, Acrylonitrile, Styrene Butadiene Rubber (SBR)
Companies Mentioned:
Braskem, Formosa, Dow, LyondellBasell, ExxonMobil, CP Chem, Huntsman, Covestro, PPG, Axalta, Sherwin Williams, Chemetry, Nova Chemicals, Baystar Polymers, EMS Group, Larsen & Toubro, Petkim, Saudi Aramco, Norinco

Daily Chemical Reaction

 

Asia Spot Trends Support Increased Supply but also Lower USGC Petrochemical Prices/Margins Ahead

 

Key Points:

  • Asia ethylene values continue to fall relative to USGC ethane – a negative trend for US ethylene derivative exporters that suggests lower prices.   
  • We discuss multiple corporate items worthy of note (e.g. EMS Group auto views, Petkim 2Q20 result commentary, Aramco suspension of China refinery investment, etc.) and a number of other chemical sector targeted news items.
  • Other items worth note today range from the first WoW downtick in PG Propylene since June, rising Butadiene prices on a global scale, and continued signs of increased China infrastructure spending that we view as a plus for PVC.

See PDF below for all charts

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