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C-MACC Sunday Recap 51
It’s All Over Now Baby Blue: Or Is It? Demand Remains Strong
- Chemical sector earnings data and narratives show a strong 4Q 2020 and so far call for significant hope strength and improvement in 2021. With Asia as the historic leading price indicator, showing relative weakness to the US, we are cautious on how 2021 will develop and view Asia demand growth with interest.
- Our caution is reflected in the stock market, with the chemicals group broadly underperforming recently, despite the positive news. The market perception of the sector will unlikely change until international prices and margins improve. Still, this alone may not be enough to counter what could be growing ESG concerns.
- Meanwhile, we see much more interest in the new idea stocks that provide alternate paths to chemicals and plastics, which is also a risk to the rest.
Last week we discussed 26 Chemical and related products and 98 Companies.
We would remind clients that our habit of including headlines and links in our work is so that you can trace our assumptions and conclusions back to the source. Not every news headline is discussed on the day of its publication, but each is examined as we look for price, margin, and thematic trend developments.
See PDF below for all charts, tables and diagrams