Daily Chemical Reaction
Squeeze Box – Global Polymer Markets To Loosen, Most Likely Push US Prices Down More Than Costs
- US polymer prices have declined from their YTD highs but most remain well above 2019 levels. Further 2H price declines are likely, but a similar cost retreat is not.
- US natural gas prices are well below NW Europe and Asia levels but reflect a multi-year high relative to Alberta levels – a plus for some Canadian chemical producers.
- Braskem expects lower polypropylene (PP) prices relative to propylene and lower gas-based polyethylene (PE) spreads QoQ in 3Q – we view PP profit as most at risk.
- We highlight Braskem efforts to invest in various clean-energy and sustainable business lines, an ongoing industry trend, and discuss delays in solar projects.
- We flag the downward trend in US 10yr gov’t bond rates since 1980, a positive development for asset values, and we discuss North American rail traffic trends.
See PDF below for all charts, tables and diagrams