Daily Chemical Reactions

Higher Crude, Asia Outages & Rubber Limits – The Three Amigos Taunting US Production
June 10, 2020
Commodities Mentioned:
Oil, Naphtha, Natural Gas, Butadiene, Ethylene, Propylene, Polyethylene, Acetone, BisPhenol A (BPA), Isopropanol (IPA), Methyl Methacrylate (MMA), Polyethylene Terephthalate (PET), Mono-Ethylene Glycol (MEG)
Companies Mentioned:
Dow, CP Chem, ExxonMobil, LyondellBasell, Methanex, SABIC, TPC Group, Kuraray, Kraton, Goodyear, Olin, Hexion, Arkema, Evonik

Daily Chemical Reaction

Higher Crude, Asia Outages & Rubber Limits – The Three Amigos Taunting US Production; Other Items

Key Points:
  • Asia Butadiene (BD) values reflect a five-year low relative to naphtha and BD derivative values reflect little sign of improvement – Asia ethylene is surging higher and this suggests to us that naphtha cracker operating rate issues beyond planned outages in Asia and Europe have not been resolved.
  • We add to our commentary on the US polyethylene (PE) market yesterday and discuss the spike higher in China acetone prices.
  • Other items of note today range from oil-and-gas commentary, to rising PET prices in China, to a 2020-22 period targeting self-sufficiency (vs. trade).

See PDF below for all charts 

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