Daily Chemical Reactions

Stayin’ Alive – Petrochemical Cost Curve Check-Up Reveals Precarious Underlying Global Dynamics
October 6, 2020
Commodities Mentioned:
Brent Crude, Natural Gas, Naphtha, Ethane, Ethylene, Propylene, Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC), Maleic Anhydride, Toluene, Styrene, Propylene Oxide, Isopropanol (IPA), Lithium, Hydrogen
Companies Mentioned:
Arkema, Ascend, Bertchi, BP, Chandra Asri, Dow, EMS Group, Hengli Petrochemical, Hexpol, Lummus, Nippon Shokubai, Polyplex, SABIC, Westlake, OxyChem, Shintech, LyondellBasell, Braskem

Daily Chemical Reaction

 

Stayin’ Alive – Petrochemical Cost Curve Check-Up Reveals Precarious Underlying Global Dynamics

 

Key Points:

  • We discuss petrochemical cost curve developments in this report, as recent Brent Crude/US Natural gas price ratio shifts oppose Ex-US Naphtha/USGC ethane ratio support that has mostly held early 3Q20 levels (see Ex. #2).    
  • We highlight numerous corporate news items (e.g. Hexpol 3Q20 update, Dow commentary from EPCA, Nippon Shokubai & Ascend price hikes, etc.)
  • Other items worth mention today range from the increases in China spot maleic anhydride and propylene oxide spot values, to toluene and styrene developments in Europe, to USGC tropical storm Delta gaining strength
  • If we can ignore the storm for a moment, it is important to note that many prices are sitting at significant premiums to costs as production comes back on line and demand hits a seasonal low – despite the better 3Q.

See PDF below for all charts

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