Daily Chemical Reactions

Born Under A Bad Sign – US Polymer Prices Reflect Premiums To Asia, Risks Rise Amid Supply Loosening
May 27, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), Propylene, Ethylene, Benzene, Lithium, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Dow, LyondellBasell, Nova Chemicals, Braskem, SABIC, Westlake, BASF, Air Liquide, Air Products, Linde Axens, Shell, ExxonMobil, CP Chemical, Johnson Matthey, Petronas Chemicals, Mitsui Chemicals, Posco, Vertex, Total, Indorama Ventures, Genomatica, Sinopec, PetroChina, Tosoh, Hyundai, NextEra, Eni, Best Buy, Tempur-Sealy, Airbus

Daily Chemical Reaction

Born Under A Bad Sign – US Polymer Prices Reflect Premiums To Asia, Risks Rise Amid Supply Loosening

Key Points:

  • We discuss US premium polyethylene (PE) values relative to Asia amid the recent weakness in Asia spot values. Absent an active US Hurricane season, we find mounting evidence that US polymer prices will likely peak in 2Q21.
  • We highlight pertinent chemical sector corporate updates (e.g., Dow, Air Liquide, LyondellBasell, Nova Chemical, Petronas Chemicals, BASF, Mitsui Chemicals, Johnson Matthey, ExxonMobil, & Shell business news).  
  • US refinery operating rates rise, but US chemical rail traffic falls WoW.
  • This report also highlights recent strength in recycled plastic values, rising initiatives to boost Capex in this arena, & US scrap plastic export trends.

See PDF below for all charts, tables and diagrams

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