Daily Chemical Reactions

Settling Down – Initial Impacts Of Production Upticks Come Forth, Supply Chains Still Far From Normal
June 2, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), Ethylene, Propylene, Benzene, Polyols, Methanol, Polyvinyl Acetate, Lithium, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Aramco, BASF, Inter Pipeline, Brookfield, Pembina, Denka, Eastman Chemical, Methanex, Indorama Ventures, Lanxess, LG Chem, LyondellBasell, Mitsui Chemicals, Polyplex, ExxonMobil, Repsol, SABIC, W.R. Grace, Albemarle, Siam Cement, Origin Materials, BP, Sekisui Chemical, Lummus, Kao, Haldor Topsoe

Daily Chemical Reaction

Settling Down – Initial Impacts Of Production Upticks Come Forth, Supply Chains Still Far From Normal

Key Points:

  • US commodity chemical prices continue to reflect tight conditions relative to Asia. This report comments to US prices settling down slightly amid more production, suggesting supply chain tightness will further moderate in 2H21.
  •  We highlight the US spot market weakness in US ethylene, polymer-grade propylene (PGP), and benzene WoW as examples of general supply increases.
  • We flag pertinent chemical sector corporate items (e.g., Aramco, BASF, Inter Pipeline, Lanxess, Denka, Mitsui Chemicals, & other producer updates).
  • Carbon prices in Europe hold up WoW after a recent drop from record highs, and we discuss an IEA report on Global energy investment trends.   
  • The Freightos Index depicting China to US freight rates and the Baltic Index fell WoW both show moderation at still historically elevated levels.

See PDF below for all charts, tables and diagrams

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