Daily Chemical Reactions | Sunday Thematic & Weekly Recap

Demand Still Hard to Call – Improving Supply Assured  
August 30, 2020
Commodities Mentioned:
Naphtha, Crude, Ethane, Natural Gas, Ethylene, Polyethylene, Propylene, Polypropylene, Paraxylene, MEG, Xylenes, PET, Polyester, SBR, Base Oils, EDC, VCM, PVC, Lithium, Cyclohexane, Chlorine, Caustic Soda, Acetone
Companies Mentioned:
LyondellBasell, Dow, ExxonMobil, CP Chem, Braskem, PPG, Sherwin Williams, Methanex, Natgasoline, SCC, Sasol, Formosa, Westlake, Koppers, Petronas, LG Chem, Odebrecht, Aramco, Shell, SIBUR, Indorama, Enterprise, BASF, Huntsman, Covestro, Phillips Carbon, Ineos, Shell, TPC Group, Nova, Olin, Shintech, OxyChem, BHP, Reliance, Tessenderlo, Celanese, Evonik, KIK, Lanxess, OCI, Sinopec

C-MACC Sunday Recap

 

Demand Still Hard to Call – Improving Supply Assured  

 

  • Pockets of resurgence of COVID, as countries try to return to a new normal and as schools and colleges return, suggest that we are a long way from stability. As the Pandemic drags on, we are seeing more and more corporate lay-offs that we believe will have a prolonged impact on some areas of discretionary spending – and by association demand for consumer durables.
  • Housing is likely to remain a bright spot while rates remain attractive. Anyone fearful of losing a job and wanting to lock in to lower living costs will likely step into the housing market early. We remain biased towards PVC and away from polypropylene – we show fresh analysis to support this view
  • Laura appears to have had minimal impact on the chemical sector but likely caused enough near-term incremental supply loss and upward sentiment to secure August price increase – meanwhile other part of the world have less support

See PDF below for all charts

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