Daily Chemical Reactions

Too Much Of A Good Thing – Recycled Resin Prices Fell In July Relative To Virgin Values, Both Lower In August
August 11, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
LyondellBasell, Braskem, Pinnacle Polymers, ExxonMobil, SABIC, BP, DCP Midstream, Freeport LNG, Toyo, Devon Energy, Enterprise Products, Flint Hills, New Fortress, Borealis, Chemtrade Logistics, LSB Industries, Indorama, Hy Stor Energy, NuScale, Ampol, Topsoe, Nel Hydrogen, Sika, Stelco, Wood, Freyr, EVgo, Delta Electronics, Dow, Black & Veatch, X Energy, Applied Industrial Technologies, DRAX, Siemens

Daily Chemical Reaction

Too Much Of A Good Thing – Recycled Resin Prices Fell In July Relative To Virgin Values, Both Lower In August

Key Points:

  • The price of plastic resin & materials and recycled plastics declined in July, and the value slide worsened in August. Recycled resin prices will likely snap back faster.
  • Brent crude and Ex-US naphtha values have fallen relative to US natural gas and USGC ethane, implying a flatter global chemical cost curve at the feedstock level.
  • We provide some general commentary on the US propylene market, which has found support, and follow with views on US benzene after its recent price drop.
  • We discuss the Hy Stor storage project and energy and wind power variability as a green hydrogen production issue. We also highlight Nuscale Power Results.
  • We highlight the US PPI posting for July that followed the CPI posting earlier this week – both were below expectations, but consumer headwinds remain stiff.

See PDF below for all charts, tables and diagrams

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