Daily Chemical Reactions

Push Comes To Shove – Downstream Price Hikes Hold Focus As Upstream Supply Chain Constraints Linger
July 20, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PS, PET, etc.), Propylene, Ethylene, Benzene, Methanol, PMMA, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
PPG, Sherwin-Williams, AkzoNobel, Asian Paints, Dow, Formosa Plastics, LyondellBasell, Sasol, PTT Global Chemical, Elkem, EMS Group, Ganfeng Lithium, Geon, Hexpol, Tristar Intermediates, Motiva, Kemira, Perstorp, Posco Chemical, Sensient, SK Materials, Synthomer, Trinseo, SQM, Nouryon, Chevron, Eastman Chemical, Amazon, Reliance Industries

Daily Chemical Reaction

Push Comes To Shove – Downstream Price Hikes Hold Focus As Upstream Supply Chain Constraints Linger

Key Points:

  • Raw material cost inflation is the hot topic today following a few sector 2Q reports, such as the results from coatings producer PPG. This setting should not surprise those following our work, and we flag several early 2H21 trends.
  • This report highlights examples of recent US commodity chemical spot market strength and notes that many derivative profit spreads, such as HDPE-to-ethylene, remain well above 2019 levels and their five-year average.
  • We highlight pertinent chemical sector corporate items (e.g., PPG, Asian Paints, Gangfeng Lithium, Motiva, Trinseo, & other sector producer news).
  • We find ESG items worth notice, ranging from IEA research on global government clean energy spending to a Chevron carbon capture update.
  • Global container freight rates fell on avg. WoW, but remain near record levels. End product price inflation is a significant 2H21 issue for retailers.

See PDF below for all charts, tables and diagrams

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