The Weekly Catalyst
Global Chemical Update – Pandemic Pallets, Unclear Habits
- We find rising evidence that food retailers are stocking inventory ahead of uncertain demand in 4Q – this adds to factors spurring plastic resin strength near term, but it also increases our confidence in an eventual reversal ahead, although it is less clear when that will be given COVID’s persistence.
- Other items of note range from strength in US HDPE relative to avg. Asia levels WoW, to continued strength in US PP relative to PGP that we think will face headwinds in 4Q, to the rising US methanol values relative to Asia WoW.
See PDF below for all charts and tables