Daily Chemical Reaction
November Rain – Indicators Increasingly Point To Production Revival, Demand Concerns Mount
- Chemical sector 2H20 business update and downstream news is moving in favor of production restarts despite more corporate demand and profit outlook hedging amid the COVID resurgence per our view – we discuss some product areas likely to remain tighter than others in 4Q20 and into 1Q21.
- We note numerous corporate items (e.g. Henkel, Hexion, IFF, Indorama Ventures 3Q results; Ascend price hikes; multiple operational updates, etc.)
- Other items mentioned range from rising US benzene relative to toluene (Ex. #6) and China styrene spot trends, to Singapore naphtha trends relative to USGC ethane (Ex. #5), to Biden support for EVs and environmental policy.
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