Daily Chemical Reactions

Evaluating The Relatives – Ex-US PE Spot Prices Question The Durability Of Domestic Premiums
September 18, 2020
Commodities Mentioned:
Naphtha, Crude, Ethane, Natural Gas, Ethylene, Polyethylene (PE), Polypropylene (PP), Poly-vinyl Chloride (PVC), Isopropyl Alcohol (IPA)
Companies Mentioned:
Dow, LyondellBasell, CP Chem, ExxonMobil, SABIC, Huntsman, Covestro, ALPLA, Arkema, Contemporary Amparex Tech., Neo Lithium, Denka, Eni, Polyplastics, PPG, Repsol, Ford

Daily Chemical Reaction

 

Evaluating The Relatives – Ex-US PE Spot Prices Question The Durability Of Domestic Premiums     

 

Key Points:

  • We compare spot polyethylene (PE) price developments in the US with overseas markets and show integrated profit margins between regions – we model US tightness dissipating on a relative basis as production returns.
  • Dow highlights that 3Q20 conditions are better than expected (this aligns with others and our view), LyondellBasell pushes PP price hikes for October and we note several other corporate items (e.g. Repsol, Polyplastics, PPG, Eni, Arkema)
  • Other items worth note today include industry comments noting increasing Asia petrochemical supply ahead in 4Q20, US container rates hitting record highs and Ford announcing plans for its F150 electric pick-up truck.

See PDF below for all charts

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