Daily Chemical Reactions

The House is Rockin’ – Building & Construction Cost Inflation Spurs Selectivity, But Demand Remains High
May 19, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), Caustic Soda, Lumber, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Westlake, Olin, Huntsman, BASF, Dow, Adeka, Berry Global, Biesterfeld, Eagle Materials, Engro, Honeywell, WR Grace, Greiner, Hexcel, IMCD, Oriental Aromatics, ISK, Kansai Paint, Nissan Chemical, Olin, Osaka Soda, Packwell, Prairie Lithium, Raven Industries, Sakata, Sumitomo Bakelite, Williams, Ineos Styrolution, Kuraray, Lanxess, Stepan

Daily Chemical Reaction

The House is Rockin’ – Building & Construction Cost Inflation Spurs Selectivity, But Demand Remains High

Key Points:

  • Building & construction raw material costs have inflated notably since the start of 2021. We find evidence that while consumers are more selective with new projects, housing demand appears unlikely to collapse anytime soon.
  • US lumber and PVC values remain near multi-year highs, and we flag a few occurrences in the chlor-vinyl industry that we view as constructive.
  • We highlight pertinent chemical sector corporate items (e.g., Olin, Adeka, ISK, Kansai Paint, Nissan Chemical, & Sumitomo Bakelite business updates).
  • Carbon prices in Europe hit a record level last week but have declined 10% WoW – we highlight the likely drivers of the depreciation.  
  • The Baltic Index falls for the second consecutive week from an 11-year high but remains at a five-year high for the time of year.

See PDF below for all charts, tables and diagrams

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