Daily Chemical Reactions

Blow At High Dough – Chemical Sector 2Q21 Profit Expectations High, 2H21 Concerns In Focus
July 7, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), Propylene, Ethylene, Benzene, Chlorine, Methanol, MMA, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Arkema, BASF, Bostik, Gail, Ganfeng Lithium, Hexpol, IOC, LyondellBasell, Jiangsu Fenghai, Lonza, Maire Tecnimont, PetroChina, Kraton, Shell, Sinopec, Solvay, Tatneft, Westlake, LASCO, Navigator Holdings, Formosa Plastics, Oriental Petchem, Covestro, Lotte Chemical, Kumho Petchem, Sibur, Amazon, Toyota

Daily Chemical Reaction

Blow At High Dough – Chemical Sector 2Q21 Profit Expectations High, 2H21 Concerns In Focus

Key Points:

  • Our discussions suggest that most anticipate chemical sector 2Q21 profit reports to be exceptionally strong and highlight positive 2H21 commentary. We discuss a few items that could deem some 2H21 views overly optimistic.
  •  This report highlights recent US spot ethylene and benzene strength, while polymer grade propylene (PGP) values reflect little change WoW.
  • We highlight pertinent chemical sector corporate items (e.g., Westlake, Shell, Arkema, BASF, Gail, Jiangsu Fenghai, & other sector producer news).
  • Carbon prices in Europe decreased WoW after setting a record-high last week – we highlight a few CO2 market drivers & other ESG news.  
  • Global container freight rates fell on avg. WoW, but remain near record levels. We find Western merchants order early for late 2H21.

See PDF below for all charts, tables and diagrams

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