C-MACC Sunday Recap 48
The Runaway Train: Price Momentum – Short Term Noise or Here to Stay For a While?
- Last week, we highlighted examples of continued strength in many global chemical markets – ethylene, propylene, methanol and the acetyls chain and polymers in the US were stand-outs. While there are some oversupply signs in China, price trends during the next few weeks remain a coin toss in our view.
- Short term production issues are boosting some prices, especially for US ethylene and propylene. Still, there are always outages, and one of the real unknowns is the strength of actual demand in China – more on this later next week. Over the last few weeks if you missed a day or two, you missed a lot.
- In our recent Climate/ESG piece, we talked about some of the hydrogen hype again – returning to the theme of the likely renewable power shortfall to meet the ambitious goals. We also discussed ESG valuations and opportunities for activists.
Last week we discussed 35 Chemical and related products and 94 Companies.
We want to start this week’s recap by talking about a couple of instances of runaway market strength over the last couple of weeks. We are going to touch on what has happened recently and show historic proxies, but we will focus on some of the major challenges in predicting the fate of these rallies in a Perspectives piece later next week – after we have published what we think will be an important ESG/Climate report
See PDF below for all charts