Daily Chemical Reactions

Thunder – Commodity Market Rumblings Pick Up, Indicators Suggest 4Q Holds The Most 2H21 Risk
July 14, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), Propylene, Ethylene, Benzene, Chlorine, Methanol, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Dow, Enterprise Products, Flint Hills, LyondellBasell, Braskem, Huntsman, PPG, Sherwin-Williams, Berry Global, Axalta, Basic Chemical Industries, Inter Pipeline, Haldor Topsoe, IFF, Lanxess, LSI, LG Chem, Pawling, Standard Lithium, Vopak, West Virginia Methanol, Citgo, Sinochem, Oriental Energy, MEGlobal, Shell, Honeywell UOP, Polyplastic

Daily Chemical Reaction

Thunder – Commodity Market Rumblings Pick Up, Indicators Suggest 4Q Holds The Most 2H21 Risk

Key Points:

  • Despite rising evidence of improved production, an abrupt loosening of US markets appears unlikely to occur at a sector level in 3Q21. We view 4Q21 as holding most 2H21 risk as a greater than seasonal profit drop could occur.
  •  We revisit US polymer grade propylene (PGP) markets as an example commodity product seeing strong demand but also improved availability.
  • We highlight pertinent chemical sector corporate items (e.g., IFF, Haldor Topsoe, Basic Chemical Industries, WV Methanol & other producer news).
  • Carbon prices in Europe have fallen MTD but remain notably higher YTD – we highlight a few CO2 market drivers & other relevant ESG news items.  
  • Global container freight rates moderated a bit WoW, but remain near record levels. We also flag the US PPI news following the recent CPI posting.

See PDF below for all charts, tables and diagrams

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