Daily Chemical Reactions

Shake It – US Spot PGP Surges Higher, Spot Ethylene Falls; Market Volatility to Stay Elevated Near Term
June 4, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), Propylene, Ethylene, Benzene, Bisphenol A, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Enterprise Products, Flint Hills, Dow, BASF, PPG, Arkema, Inter Pipeline, Petrobras, LyondellBasell, Pinnacle Polymers, SIBUR, Eastman Chemical, ExxonMobil, Pemex, Lukoil, Saudi Chemical Co., INEOS, Wanhua, Trinseo, Lanxess, Petron, Reliance, Kinder Morgan, Linde, Chart Industries, Williams, Technip Energies, Solvay, Worley, Shell

Daily Chemical Reaction

Shake It – US Spot PGP Surges Higher, Spot Ethylene Falls; Market Volatility to Stay Elevated Near Term

Key Points:

  • 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

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