Daily Chemical Reaction
Meet In The Middle – US Commodity Chemical Spot Market Premiums Face Pending Global Reset
Key Points:
- US commodity chemical markets reflected a more pronounced bounce from 2Q lows relative to many overseas markets, in part because of a historic USGC Hurricane season and related outages. We discuss the forward setting.
- We note multiple relevant corporate items (e.g. Ingevity, Maersk, Nippon Kayaku, Panasonic & Target business updates; Mitsubishi Chemical, Croda, & Petronas strategic moves; Röhm, Ascend & Celanese product news, etc.)
- Other items mentioned range from the start-up of new NGL fractionation units at Phillips 66, to recent weakness in US natural gas relative to USGC ethane (Ex. #3), to several retailer reports framing consumer demand.
See PDF below for all charts