Daily Chemical Reactions

A Dragon Pulls The Vinyl Wagon, Propylene Views & US Chemical Rail Traffic Faces Bumpy Tracks
September 17, 2020
Commodities Mentioned:
Ethane, Propane, Naphtha, Ethylene, Propylene, Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC), Benzene, Butanediol (BDO), Sulphuric Acid, Base Oils, Paraxylene
Companies Mentioned:
Westlake, Olin, Shintech, Formosa, OxyChem, LyondellBasell, Braskem, COIM USA, Aramco, TPPI, Pertamina, Sinochem, LG Chemical, OQ Chemicals

Daily Chemical Reaction

 

A Dragon Pulls The Vinyl Wagon, Propylene Views & US Chemical Rail Traffic Faces Bumpy Tracks

 

Key Points:

  • China polyvinyl chloride (PVC) prices move higher this week both on an absolute basis and relative to other major polymer values – we highlight a few items supporting our view that Asia demand is pulling PVC values higher.
  • USGC refinery operating rates bounced higher WoW, USGC PDH units reflect a profit and USGC propane co-product integrated cracker feedstock costs reflect a similar level to ethane – with these items consider, we continue to see PGP support near-term (relative to ethylene) and discuss our case.
  • Other items worth note today range from price increases in US polyester polyols, to USGC naphtha and propane setting sail to Asia, to mounting global news surrounding the Hydrogen market as a clean energy resource.

See PDF below for all charts

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