Daily Chemical Reaction
Shake It – US Spot PGP Surges Higher, Spot Ethylene Falls; Market Volatility to Stay Elevated Near Term
- US spot polymer-grade propylene (PGP) values surged higher this week, while USGC spot ethylene notably declined. We flag these market swings WoW to show that out-of-balance supply chains are leading to volatility.
- US commodity chemical producers are poised to post abnormally strong 2Q results. We do not view Dow guiding above consensus views with surprise.
- We flag pertinent chemical sector corporate items (e.g., Air Liquide, Dow, Inter Pipeline, SIBUR, & Petrobras news; Several Capex & price updates)
- Carbon market news flow mounts, and we flag more ESG sector items.
- We flag multiple macro-economic factors worthy of note, ranging from continued news of demand strength to a relatively weak US dollar YoY.
See PDF below for all charts, tables and diagrams