Sector Per-Unit Profit Trends Robust, Producers Set To Battle Degradation As Supply Chains Normalize

Daily Chemical Reaction

Sector Per-Unit Profit Trends Robust, Producers Set To Battle Degradation As Supply Chains Normalize

Key Points:

• Commodity chemical per-unit profit postings remain robust in 1Q reports – we flag recent polyurethane trends at Covestro & ECU trends at Olin.  
• We frame the Methanex North America methanol contract nomination for May relative to US & Asia spot prices, & historic contract premium trends.
• We highlight pertinent chemical sector corporate items (e.g., 3M, Covestro, LG Chem, Olin, Shin-Etsu, Tikkurila, & Tokuyama business updates).
• We flag the rising fund flows targeting CCS & unrealistic hydrogen goals.  
• The Baltic Index hits a 10-year high amid continued freight rate strength.  

See PDF below for all charts, tables and diagrams