Daily Chemical Reactions

When The Levee Breaks – Downward Pressure Facing Spot US PGP Stiffens, Rising Production Tide Ahead
May 26, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), Propylene, Ethylene, Butadiene, MEG, Methanol, ABS, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Enterprise Products, Flint Hills, Dow, LyondellBasell, Braskem, Huntsman, PPG, Sherwin-Williams, Berry Global, Axalta, ExxonMobil, Johnson Matthey, Ashland, Lummus, Saint-Gobain, Technip Energies, Bechtel, Petrobras, Boardwalk, Methanex, Viridor, Autozone, Toll Brothers, Dick’s Sporting Goods, Nissan, Algoma Steel

Daily Chemical Reaction

When The Levee Breaks – Downward Pressure Facing Spot US PGP Stiffens, Rising Production Tide Ahead

Key Points:

  • US commodity chemical prices still reflect broadly tight conditions relative to Asia. Though an abrupt loosening of US markets is unlikely at a sector level, the return to a more typical supply setting will vary by product chain.
  •  This report targets US polymer-grade propylene (PGP) as an example product facing abrupt price degradation amid increased supply availability.
  • We highlight pertinent chemical sector corporate items (e.g., ExxonMobil, Johnson Matthey, LyondellBasell, Saint-Gobain, & other producer updates).
  • Carbon prices in Europe bounce WoW back to near record-high levels after a recent decline – we highlight a few drivers of this market.  
  • The Baltic Index increased WoW, reflecting a five-year high for the time of year, and this offer further evidence of broadly elevated global freight rates.

See PDF below for all charts, tables and diagrams

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