Daily Chemical Reactions

Tumbling Dice – Durable Goods Selectively Elevated, Margin Trends Favor Global Supply Roll-Out Ahead
October 27, 2020
Commodities Mentioned:
Plastics (PVC, PP, PE, etc.), Chlor-Alkali, Isocyanates (TDI & MDI), Acetyls, Ethylene, Paraxylene, MMA, MEG
Companies Mentioned:
Altura, BorsodChem, BP, Brenntag, Celanese, DuPont, Lanxess, Avient, Chandra Asri, Covestro, BASF, Dow, Huntsman, Tosoh, Shin-Etsu, Westlake, Formosa, Olin, Koppers, Sherwin-Williams, Sekisui, Ineos, Perstorp, Showa Denko, W.R. Grace, JSR, GHCL, SABIC

Daily Chemical Reaction

 

Tumbling Dice – Durable Goods Selectively Elevated, Margin Trends Favor Global Supply Roll-Out Ahead           

 

Key Points:

  • Chemical sector 3Q results and 2H20 updates continue to beat stale Street views and reflect optimism for further improvement – we note several macro and commodity market items suggesting an overreactive supply response is increasingly likely on an industry-wide scale into 2021.
  • We note numerous corporate and sector items (e.g. Covestro, Koppers, Shin-Etsu, Sherwin-Williams, Celanese, SABIC and INEOS business updates; Brenntag restructuring announcement; global outage & expansion news, etc.)
  • Other items mentioned today range from falling Asia spot ethylene values relative to the US, to more items supporting global tightness in PVC, to our walk around the sector highlighting numerous relevant news.

See PDF below for all charts 

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