Daily Chemical Reactions

Bridge Over Troubled Water – Evaluating 2H Sector Support Factors Amid Emerging Cross Beam Cracks
October 29, 2020
Commodities Mentioned:
Methanol, Plastics (PP, PE, PVC), Crude Oil/Naphtha, Natural Gas/NGLs, Isocyanates, Polyols, Nylon, Lithium
Companies Mentioned:
DuPont, Kraton, Huntsman, Clariant, Wacker, Methanex, Dow, BASF, Covestro, OMV, Borealis, Arkema, Avantor, Elementis, Lucite, W.R. Grace, Albemarle, Orocobre, Formosa, PetroChina, Sinopec, Petrobras, Shell, Repsol, Tokuyama, Versalis, Symrise, Teijin, Univar, Pertamina

Daily  Chemical Reaction

Bridge Over Troubled Water – Evaluating 2H Sector Support Factors Amid Emerging Cross Beam Cracks

Key Points:

  • 3Q20 corporate results and outlooks generally target further improvement into 2021 relative to 2Q20 COVID-induced lows but we find questions about profit relative to pre-COVID levels on the rise – we maintain a cautious view.
  • We discuss numerous corporate news/update items (e.g. Clariant, DuPont, Huntsman, Methanex, W.R. Grace and other 3Q20 reports; Dow, Wanhua and Formosa operational news; global sector capex announcements, etc.).
  • Other sector items worth note range from the contraction in the crude oil-to-natural gas ratio, to US chemical railcar traffic rising WoW, to our views of the US polyethylene contract setting amid slowing spot price momentum.

See PDF below for all charts 

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