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

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