Daily Chemical Reactions

Price Hikes Amid Limitations – The Butadiene Handcuffs; Vinyls, PE & Other Items Of Note
May 22, 2020
Commodities Mentioned:
Oil, Natural Gas, Butadiene, Ethylene, Propylene, Polyethylene, Caustic Soda, Chlorine, Polyvinyl Chloride (PVC), Polyethylene
Companies Mentioned:
Dow, CP Chem, ExxonMobil, LyondellBasell, Kuraray, Kraton, Goodyear, DuPont, Sasol, Sekisui, Air Products, Cepsa, JXTG

Daily Chemical Reaction

Price Hikes Amid Limitations – The Butadiene Handcuffs; Vinyls, PE & Other Items Of Note

Key Points:
  • Asia Butadiene (BD) values reflect a five-year low relative to naphtha and BD derivative values reflect little sign of improvement – this suggests ethylene cracker operating rate issues in Asia and Europe are persisting.
  • We highlight weakness in China caustic soda values while PVC values rising – we see this setting as more beneficial to Westlake relative to Olin.
  • We discuss multiple global corporate releases (Dow, Sekisui, Air Products, Cepsa & JXTG) and thoughts on recent events (Dow & DuPont).
  • Other items of note today range from oil-and-gas commentary, to mixed Asia petrochemical output, to a new EV launch in China.

See PDF Below for all charts referenced

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