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

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