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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