Daily Chemical Reaction
Auto Market Blues & Brews; Methanol Contract Nominations Pray for Spot Support; Other Items
- We discuss automotive market headwinds (Hertz bankruptcy, falling used car values & rising US consumer negative vehicle equity scores) that we view as negative for chemical demand in a few key areas – we frame the issues.
- North America methanol contract nominations for June reflect significant premiums to US and Asia spot methanol values – we remain unconvinced.
- Other items of note today range from oil-and-gas commentary, to strength in some chemical chains that are being helped by recent supply curtailments, to lithium producers waiting out pandemic for the EV revolution to resume.
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