Daily Chemical Reactions

Started From The Bottom – Sequential Profit Growth Robust Since 2Q20, QoQ Momentum To Moderate
April 30, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), Propylene, Ethylene, Methanol, Acetic Acid, Carbon Dioxide, Hydrogen, Methanol, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Aramco, Avient, Chevron, Eastman, Eni, ExxonMobil, IMCD, Ingevity, LSB, LyondellBasell, Dow, Eastman Chemical, OMV, Borealis, Repsol, Sibur, Smurfit Kappa, Songwon, SK Innovation, Total, Tronox, Versalis, Wacker, CenterPoint, Continental Resources, Energy Transfer, Shell, BASF

Daily Chemical Reaction

Started From The Bottom – Sequential Profit Growth Robust Since 2Q20, QoQ Momentum To Moderate

Key Points:

  • 1Q Chemical sector profit reports & business updates display remarkable strength and optimism – we see slowing momentum as a concern for 2H21.   
  • We flag pertinent chemical sector corporate items (e.g., Avient, Chevron, Eastman Chemical, Eni, ExxonMobil, IMCD, Ingevity, LSB, LyondellBasell, OMV, Repsol, Sibur, Smurfit Kappa, Total, Tronox, Versalis, & Wacker business updates; Multiple price hike & supply-chain notices)  
  • Commodity chemical values remain broadly elevated YoY – we discuss recent trends in polyethylene and other product chains.
  • Consumers are paying a premium for sustainable products – we view this as a factor lacking adequate appreciation and as a risk for the pyrolysis plans.
  • We highlight multiple macro-economic factors supporting the positive sector outlooks being provided by most producers with their 1Q21 updates.

See PDF below for all charts, tables and diagrams

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