Daily Chemical Reaction
Something’s Gotta Give – Asia Monomer Values Are Misaligned With Derivative Fundamentals
- Asia polymer price trends on average do not support the industry case that recent upticks in ethylene and propylene are demand driven, per our model.
- We take a positive view of PVC relative to other polymer chains (notably PE & PP), find Asia propylene values decline WoW from an 11-week high amid greater supply, and note VAM as another ethylene derivative chain unable to push through higher raw material costs due to lackluster demand.
- Other items of note today range from oil-and-gas commentary, to Dow comments on the PE markets and the need for clarity on US/China trade to invest in megaprojects, to Nissan motor estimated vehicle production cuts.
See PDF below for all charts referenced