Daily Chemical Reactions

All Together Now – US Monomer Values Fall WoW, Signaling Price Weakness Ahead Downstream
June 11, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), Propylene, Ethylene, Benzene, Caustic Soda, Acetone, PVB, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Indorama Ventures, Dow, LyondellBasell, Elanco, Sherwin-Williams, PPG, Huntsman, Kuraray, Petrobras, SIBUR, BP, ExxonMobil, Petro Rabigh, DuPont, Axalta, Lotte Chemical, Sinopec, PetroChina, Plug Power, Itochu, Stolt, Formosa Plastics, Oberon Fuels, Mondi, Atotech, Rio Tinto, Petronet, United Airlines, Tesla

Daily Chemical Reaction

All Together Now – US Monomer Values Fall WoW, Signaling Price Weakness Ahead Downstream

Key Points:

  • US spot ethylene, polymer-grade propylene (PGP), and benzene values drop WoW, which will likely work to tug derivative values lower. Recent positive momentum in US commodity chemicals is now in reverse broadly.
  • US commodity chemical producers are poised to post abnormally strong 2Q results. We foresee greater benefits for specialty producers in 2H21.
  • We flag pertinent chemical sector corporate items (e.g., Indorama, Dow, Kuraray, Inter Pipeline, & Petrobras news; Several Capex & price updates)  
  • DOE Hydrogen initiatives advance and we flag more ESG sector items.
  • We flag multiple macro-economic factors worthy of note, ranging from continued news of demand strength to the relatively weak US dollar YoY.

See PDF below for all charts, tables and diagrams

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