Daily Chemical Reaction
Running On Empty (Maybe) – Indicators Point To Production Revival Despite Low Demand Visibility
- Chemical sector 2H20 business update and downstream news highlights leaner supply chains in a period when per-unit profit supports greater production in most product chains – though most expectations imply supply lagging or moving higher with demand, the risk of an overreaction is high.
- We note numerous corporate items (e.g. Aramco, Avient, DSM, Evonik, Fuchs Petrolub and Westlake updates; Kuraray, OQ Chemical and other price hike news; global outage, Lake Charles restart & expansion news, etc.)
- Other items mentioned range from rising Asia spot styrene values relative to benzene and US levels (Ex. #3), to US Natural Gas near energy equivalent parity with USGC ethane (Ex. #2), to Walmart rejecting robot scanners.