Daily Chemical Reactions | Sunday Thematic & Weekly Recap

Improved 3Q, But Caution Based Restructurings Continue
October 4, 2020
Commodities Mentioned:
Ethylene, Propylene, Polyethylene, Polypropylene, PVC, MEG, Isocyanates, Polyols, MTBE, Lithium, Hydrogen, TiO2, Butadiene, SBR, Cannabinoids, Pectin, Oil, Naphtha, Natural Gas, NGLs, Benzene, Styrene, Carbon Black, Polyester, Cobalt, Isononanoic Acid, Bromine
Companies Mentioned:
LyondellBasell, Braskem, Dow, Westlake, Methanex, SCC, Mitsui Chemicals, Celanese, Natgasoline, Amazon, Agilyx, Aramco, BASF, ExxonMobil, CP Chem, SABIC, Formosa, TPPI, Kuraray, Pembina, Inter Pipeline, Piedmont, Samsung Heavy, Sinopec, JG Summit, Solvay, SMS, Tesla, Tokuyama, Hexion, Wacker, Oxy, Shintech, BP, Covestro, EcoGraf, Genomatica, Givaudan, Haldor Topsoe, Shell, Sherwin, Sika, Total, Umicore, Venator, Vistra, Conoco, Dekun, RiseSun MGL, INEOS, Invista, Kraton, Bayer, Cabot, Eastman, Elanco, Fuller, Hengli, Nexam, Nippon Shokubai, PQ, Sumitomo, TechnipFMC, Amcor, Asahi Kasei, Hapag-Lloyd, Orion, Cargill, DSM, DuPont, Huntsman, Lonza, Sasol, Virent, OQ Chem, Petrobras, Lanxess, ICL, Albemarle

C-MACC Sunday Recap

 

Improved 3Q, But Caution Based Restructurings Continue

 

  • Prior to 3Q20 earnings, we see sector job reduction announcements – the timing is normal; investors are not surprised by the associated charges, but companies are carrying through with plans that suggest caution, despite improved 3Q updates
  • Planning for the worst, while observing the better. We noted numerous higher contract settlements for September that point to elevated integrated margins based on a mixture of price strength and feedstock cost weakness. Some elements of the market strength are real, while others have possibly peaked in September.
  • LyondellBasell is not planning for the worst, adding more debt with the Sasol Lake Charles acquisition. We have seen this movie before with Lyondell in its past lives and disagree with the view that this deal is at the bottom of the polyethylene cycle.  What we would say is that it is (hopefully) at the bottom of Sasol’s cycle.

C-MACC is hiring:  We are looking to fill two positions, one in sales and marketing and one in consulting.  In both cases we are looking for some previous experience, but we are looking for the right people before the right experience – we are a small company and fit is critical – send resumes and a cover letter to either of us.

This week we discussed 27 Chemical and related products and 80 Companies

See PDF below for all charts

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