Daily Chemical Reactions

Jamming – Western Chemical Markets Face Cost Curve & Mounting Asia Concerns In 2H21
July 13, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), MDI, Propylene, Ethylene, Benzene, Methanol, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
BASF, Covestro, Dow, Huntsman, Wanhua, Advent, Borealis, Evonik, PPG, Sherwin-Williams, AkzoNobel, Gujarat Heavy Chemicals, PTTGC, Inter Pipeline, Repsol, Sasol, Aramco, Shell, CNOOC, TotalEnergies, Petro Rabigh, Vinnolit, Sinopec, Denka, Air Liquide, Lotte Chemical, Shin-Etsu, Formosa Plastics

Daily Chemical Reaction

Jamming – Western Chemical Markets Face Cost Curve & Mounting Asia Concerns In 2H21

Key Points:

  • Western commodity chemical markets remain tight in early 2H21 relative to Asia. The potential timeline for the regional differences to normalize will be a hot topic on many 2Q earnings calls, and we flag a few trends worth notice.
  •  This report highlights recent USGC spot ethylene price strength, which has moved US spot levels to a premium compared to average Asia values.
  • We highlight pertinent chemical sector corporate items (e.g., Covestro, Evonik, PTTGC, Inter Pipeline, Repsol, Sasol, & other sector producer news).
  • We find numerous ESG items and announcements worth mention, ranging from Shell project notices to carbon prices relative to renewable energy costs.
  • We note numerous other pertinent chemical sector items in this report.

See PDF below for all charts, tables and diagrams

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