The Weekly Catalyst
Global Chemical Update – Vinyl Records, Upbeat Tunes
- Polyvinyl Chloride (PVC) values move higher WoW on an absolute basis and relative to other major polymers – we maintain a view that tight market conditions will keep PVC prices elevated on a YoY global scale in 4Q20.
- US natural gas and related petrochemical feedstocks have fallen recently relative to Crude/naphtha – a plus for US petrochemical producer profit, and we flag lower natural gas costs as beneficial for US chlor-alkali and methanol.
- Other items of note range from weakness in US HDPE relative to avg. Asia levels WoW, to continued support in US PP relative to PGP that we think will face downward pressure in 4Q, to the surge US Butadiene spot prices WoW.
See PDF below for all charts and tables