Daily Chemical Reactions

The Asian Persuasion – Asia Ethylene Trends Suggest US Polyethylene (PE) Market Deflation Ahead  
August 25, 2020
Commodities Mentioned:
Naphtha, Crude, Ethane, Natural Gas, Ethylene, Polyethylene (PE), Propylene, Polypropylene (PP), Paraxylene, Monoethylene Glycol (MEG), Mixed Xylenes (MX), Polyethylene Terphthalate (PET)
Companies Mentioned:
Dow, LyondellBasell, CP Chem, ExxonMobil, Sasol, Formosa Plastics, Westlake, Koppers, Petronas Chemicals, LG Chem, Odebrecht, Aramco, Shell, SIBUR, Indorama

The Chemical Reaction

 

The Asian Persuasion – Asia Ethylene Trends Suggest US Polyethylene (PE) Market Deflation Ahead  

 

Key Points:

  • We discuss the relationship between Asia ethylene and US polyethylene values – recent weakness in the former likely foretells weakness in the latter based on history and the increased US exposure to the export market.
  • We discuss several corporate news items that hit our screen overnight (e.g. ExxonMobil Chemicals, Koppers, Petronas, Aramco, Shell and SIBUR).
  • Other items worth note today include improvement in US PDH margins, notable length in Asia aromatics markets and seemingly weak PE producer conditions in Europe amid stalled demand growth and lower Asia prices.

See PDF below for all charts

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