Daily Chemical Reactions

Homeward Bound – Construction Market Chemicals Reflect Continued Support, Keep Profit Lights On
September 9, 2020
Commodities Mentioned:
Benzene, MDI, Polyethylene, Polypropylene, Naphtha, Carbon, Polyurethane, Polyols, Propylene Oxide, Ethylene Oxide, Ethylene, Propylene, TDI, PVC, Nitrogen, BDO
Companies Mentioned:
Huntsman, Covestro, Dow, BASF, Tosoh, Wanhua, Olin, Air Products, Ciech, LyondellBasell, Elkem, Ineos, Johnson Matthey, KBR, Michelin, Ocean Network Express, PKN Orlen, Solvay, Veolia, Worley

Daily Chemical Reaction

 

Homeward Bound – Construction Market Chemicals Reflect Continued Support, Keep Profit Lights On

 

Key Points:

  • We maintain a constructive view of chemicals serving construction end markets, and we follow Huntsman’s increased 3Q20 profit view for MDI by extending it to 2021/22 – we hold a generally positive view of this market.  
  • We flag positive read-throughs from the Huntsman release (and a recent Covestro release) for Dow, BASF, Tosoh and Wanhua, and highlight other corporate news (Bora LyondellBasell, Air Products, Solvay, Worley, etc.).
  • Other items worth note range from commentary on US PE and PP spot and contract price developments in September, to the recent decline in Asia naphtha values, to mounting industry decarbonization initiative news.

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