Daily Chemical Reactions

Way Of The Dragon – Thoughts Following Sinopec Meeting, Asia Chemical Values Kick Higher WoW   
October 15, 2020
Commodities Mentioned:
Crude/Naphtha, Natural Gas/NGLs, Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC), Methanol, Butyl Acrylate, Lithium, Mixed Xylenes, Hydrogen, Styrene Butadiene Rubber (SBR), Butyl Rubber
Companies Mentioned:
Sinopec, Applied Graphene Materials, Covestro, Dow, BASF, Barentz, Energy Renaissance, Givaudan, Gurit, Huntsman, Ikea, Indorama Ventures, Kaustik Volgograd, Lonza, Lummus, LG Chemical, TechnipFMC, Total, BP, TPC Group, Shin-Etsu Chemical, Solvay

Daily Chemical Reaction

Way Of The Dragon – Thoughts Following Sinopec Meeting, Asia Chemical Values Kick Higher WoW   

Key Points:

  • Two items focused on Asia today: a) we view Sinopec on a path towards growth downstream and see its global competitive position expanding over time; and b) Asia prices are rising, but many remain below USGC spot levels.
  • We note numerous corporate items (e.g. Gurit wind read-throughs positive for Huntsman; TPC Group operational issues in Houston; Covestro TDI force majeure; Occidental views on US oil production, etc.)
  • Other sector items worth a mention today range from USGC polymer values reflecting reduced upward price momentum, to US natural gas price strength, to Ikea buying back used furniture in some areas for recycling.

See PDF below for all charts

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