Daily Chemical Reactions | Sunday Thematic & Weekly Recap

Historic 2020 Distractions To Dissipate, ESG Issues To Escalate
October 11, 2020
Commodities Mentioned:
Crude, Natural Gas, Naphtha, Ethane, Ethylene, Propylene, Polyethylene, Polypropylene, PVC, Maleic Anhydride, Toluene, Styrene, Propylene Oxide, Isopropanol, Lithium, Hydrogen, Chlorine, Caustic Soda, PET, Polyurethanes, Benzene, Methionine, Styrene, Polystyrene, Nickel, Methanol, Ethylene Vinyl Acetate, Carbon Fiber, Silicon, Epoxies, Specialty Polymers
Companies Mentioned:
LyondellBasell, Formosa, ExxonMobil, CP Chem, Braskem, Westlake, Shintech, OxyChem, Methanex, SCC, Natgasoline, Arkema, Ascend, Bertchi, BP, Chandra Asri, Dow, EMS Group, Hengli, Hexpol, Lummus, Nippon Shokubai, Polyplex, SABIC, BASF, Celanese, Huntsman, Covestro, INEOS, Nova, Kraton, Landec, Olin, Perstorp, RPM, Aramco, OMV, DSM, Acuity Brands, Solvay, Advanced Petrochemical, SK Gas, Givaudan, Hexion, Petron, Shrieve, CLP Chemicals, Henkel, Kemira, PPG, Shell, Sumitomo, DuPont, Lanxess, Stolt-Nielsen, Daimler AG, Wacker, Tokuyama, Air Products, Lotte, Borealis, Albemarle, SQM, Hexcel, Livent, Solvay, Tianqi, Ganfeng

C-MACC Sunday Recap

 

Historic 2020 Distractions To Dissipate, ESG Issues To Escalate

 

  • Supply chain imbalances and commodity price volatility have both been at historic levels as a result of unprecedented issues (COVID-19, Historic US Hurricane Season, etc.) in 2020 – we advise chemical companies to approach much of the near-term price/margin strength with skepticism and focus on liquidity, as ESG, and more specifically climate change and plastic waste, related costs are set to rise.
  • We expect company focused carbon targets and further actions on the circular plastic economy to come “rapid fire” during the next 6 months. We also expect the financial market treatment of corporate positioning will favor those with actual plans and progress milestones relative to than those with less tangible rhetoric.
  • Last week, we found more sector corporate releases highlighting 3Q20 updates that exceed Street expectations and evidence of commodity chemical price/margin support in the midst of Hurricane Delta – though we expect sector optimism to stay high near-term, we are concerned that late 4Q and 1H21 expectations are too high.

Last week we discussed 31 Chemical and related products and 68 Companies

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