Daily Chemical Reactions

Neon Eyes – Chemical Sector Profit To Stay Elevated Near Term, Specialties To Likely Outperform In 2H21
May 12, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), Benzene, Ethylene, Propylene, Carbon Dioxide, Hydrogen, Methanol, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
BASF, Borealis, bp, Stepan, ExxonMobil, Hexion, Idemitsu, Eneos, Kurita Water, Lanxess, DuPont, Celanese, Axalta, PPG, Occidental, Westlake, Shintech, Formosa Petrochemical, Olin, Formosa Plastics, LyondellBasell, Mitsubishi Chemical, Mitsui Chemicals, Nouryon, Pertamina, Air Products, Tokai Carbon, Ube Industries

Daily Chemical Reaction

Neon Eyes – Chemical Sector Profit To Stay Elevated Near Term, Specialties To Likely Outperform In 2H21

Key Points:

  • US consumer demand for durable goods remains elevated, and we discuss several relevant findings from global commodity, specialty, and end-product markets that ring in favor of chemical sector profit strength near term.
  • Input cost inflation remains a broad-based issue for specialty chemical and broadly for sector product consumers – we find commodity inflation is not only occurring in chemical markets & flag metals and lumber as examples.   
  • US spot propylene and benzene values remain higher WoW, while we find USGC spot ethylene taking a step lower amid a derivative production issue.
  • We highlight pertinent chemical sector corporate items (e.g., Lanxess, Hexion, Tokai Carbon, Occidental, & Kurita Water business updates).
  • Carbon prices in Europe hit a record level, global ESG ETF inflows reach a new high in 1Q21, & global industry Capex mounts targeting renewables.  
  • The Baltic Index hits an 11-year high amid continued freight rate strength.  

See PDF below for all charts, tables and diagrams

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