Daily Chemical Reactions

Comfortably Numb – US Ethylene (& PE) Optimism Remains High, Despite Mounting Global Warnings
September 8, 2020
Commodities Mentioned:
Naphtha, Crude, Ethane, Natural Gas, Ethylene, Polyethylene (PE), Monoethylene Glycol (MEG), Acetone, Phenol, Polyester
Companies Mentioned:
Dow, LyondellBasell, ExxonMobil, Westlake, CP Chem, Lotte Chemical, Indorama, Sasol, Celanese, AkzoNobel, Air Liquide, Chandra Asri, Axens, Reliance, Sinopec, SK Innovation, Hyundai Motor, Stolt, Total, Triliance Petrochemical, Zhejiang Petrochemical, Tesla

Daily Chemical Reaction

 

Comfortably Numb – US Ethylene (& PE) Optimism Remains High, Despite Mounting Global Warnings

 

Key Points:

  • Optimism surrounding US ethylene and polyethylene (PE) markets is high per our conversations – we discuss export market and cost curve trends that we find increasingly sounding alarm bells before likely US market reversals.  
  • We also discuss the recent US ethylene contract settlement for August, the Westlake Chemical estimate of full production at its Lake Charles production units by early October and other corporate items of note (e.g. AkzoNobel, Chandra Asri, Reliance, LyondellBasell, Sinopec, Total).
  • Other items worth range from global MEG market tightness amid multiple US force majeures, to several global chemical capacity/project updates, to the port congestion issues posed by Typhoon Haishen in NE Asia.

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