Daily Chemical Reactions

Born In The USA – USGC Production Issues Rattle Global Supply Chains, Chemical Prices Broadly Rise
February 23, 2021
Commodities Mentioned:
Ethylene, Propylene, Plastics (PVC, PP, PE, PS, PET, etc.), Polyurethanes, Polyols, Aromatics, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Covestro, Dow, Huntsman, Westlake, Formosa Plastics, Shintech, OxyChem, AdvanSix, Sasol, Sunsine, Orion Eng. Carbons, Petronas Chemicals, Versalis, Arkema, BASF, Chandra Asri, Spsilyte, Goodyear, Cooper Tire, PPG, Sumitomo Chemical, Petronas Chemicals, Reliance, Snetor, Stamicarbon, Versalis, Shell, Inter-Pipeline, Avient

Daily Chemical Reaction

Born In The USA – USGC Production Issues Rattle Global Supply Chains, Chemical Prices Broadly Rise

Key Points:

  • We discuss several 4Q20 reports and corporate outlooks that comment on an array of supply chain issues recently jolted further by US winter storms. We foresee a production response, but timing remains in question.
  • We flag pertinent chemical sector corporate items (e.g., AdvanSix, Sasol,  Covestro, China Sunsine, Orion Engineered Carbons, Petronas Chemicals, Versalis, & Westlake profit postings; Multiple production & price updates)  
  • This report’s other relevant items include the surge in USGC spot ethylene relative to Asia since late 2020, several indicators incentivizing US chemical producers to lift operating rates quickly, and container freight rates from China to the US and Europe reflecting near decade highs.

See PDF below for all charts, tables and diagrams

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