Daily Chemical Reactions

Strong Views, & Issues – Another Look at US PE Contract Hikes as The Producer Push Continues
September 2, 2020
Commodities Mentioned:
Naphtha, Crude, Ethane, Natural Gas, Ethylene, Butadiene, Polyethylene (PE), Monoethylene Glycol (MEG), Polyethylene Terephthalate (PET), Vinyl Chloride Monomer (VCM), Poly-vinyl Chloride (PVC)
Companies Mentioned:
Dow, LyondellBasell, CP Chem, ExxonMobil, Nova Chemicals, Merlin Plastics, Sibur, Westlake, Sasol, Lotte Chemical, Unilever, Abel Petrochemical, Kumho Petrochemical, Chandra Asri, Pertamina

Daily Chemical Reaction

 

Strong Views, & Issues – Another Look at US PE Contract Hikes as The Producer Push Continues     

Key Points:

  • The Aug. US contract reflects a 5yr. high relative to Asia spot levels, and the Sept. MoM contract nomination implies a multi-yr. high relative to US and Asia spot levels per our estimate. This is highly unstable for a country dependent on exports for 30-35% of its polyethylene demand.
  • We highlight findings that creates a still turbulent chemical supply chain setting on a global scale and flag several corporate news items worth note (e.g. Unilever, Nova Chemicals, CP Chem, Abel Petrochemical, Chandra Asri).
  • Other items worth note today include the continued debate surrounding single-use plastics, tightening MEG markets and new polymer unit capacity additions that have been pushed to start up in 1H21 from 2H20 in SE Asia.

See PDF below for all charts

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