Daily Chemical Reaction
Isolation Renovation & Food Packaging – Stand-Out 3Q Demand Ascensions With Uncertain Dimensions
- Chemical sector 3Q20 results this week display notable strength in home improvement product demand and global food packaging demand – we see demand optimism continuing in 4Q but rising stamina concerns in 2021.
- We highlight two exhibits: a) US LDPE integrated margins relative to the five-year range – we discuss our concerns with profit margins despite better-than-expected demand; and b) AkzoNobel paints/coatings volume trends.
- Other items worth mention range from corporate items (e.g. AkzoNobel, Silgan, Stepan, Avery Dennison, WD-40, LG Chem, Saudi Kayan results), to several price hike initiatives, to the ex-China push for rare earth materials.
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