Daily Chemical Reactions

Auto Market Blues & Brews; Methanol Contract Nominations Pray for Spot Support
May 27, 2020
Commodities Mentioned:
Oil, Coal, Natural Gas, Polypropylene, Polyamides, Polyethylene, Polyvinyl Chloride, Polyurethanes, Butadiene, Methanol, Ethylene, Lithium
Companies Mentioned:
LyondellBasell, Braskem, Dow, BASF, Huntsman, Celanese, DuPont, DSM, Hertz, Avis Budget, Methanex, SCC, CNOOC

Daily Chemical Reaction

 

Auto Market Blues & Brews; Methanol Contract Nominations Pray for Spot Support; Other Items

Key Points:
  • 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.

See PDF Below for all Charts 

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