Daily Chemical Reactions

Fatal Attraction – High Prices Lure Production, Timing Of Profit Squeeze Varied But Inevitable
September 29, 2020
Commodities Mentioned:
Ethylene, Propylene, Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC), Mono-ethylene Glycol (MEG), Isocyanates, Polyols, MTBE, Lithium, Hydrogen, Titanium Dioxide (TiO2)
Companies Mentioned:
Agilyx, Aramco, BASF, ExxonMobil, CP Chem, SABIC, Formosa, TPPI, Kuraray, LyondellBasell, Pembina, Inter Pipeline, Piedmont Lithium, Samsung Heavy Industries, Sinopec, JG Summit, Solvay, SMS, Tesla, Tokuyama, Hexion, Wacker

Daily Chemical Reaction

 

Fatal Attraction – High Prices Lure Production, Timing Of Profit Squeeze Varied But Inevitable

 

Key Points:

  • Asia chemical production is rising and the return of USGC facilities post Laura supports our view of more global supply ahead in October/November – we take a cautious view of petrochemical price/margin trends on avg. in 4Q.    
  • We display three exhibits: a) Asia ethylene cracker margins; b) US spot PE levels relative to NW Europe & Asia; and c) NA PP price relative to USGC propane. Each reflects a level at-or-above the one seen at this point last year.
  • Other items worth mention today range from corporate items (e.g. BASF TDI price hikes, LyondellBasell Green Polymer Targets, Sinopec Zhongke facility start-up, Wacker dispersion price hikes, etc.), to several global price trends of note, to comments on Canadian petrochemical developments.

See PDF below for all charts

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