Chemical Industry Summary Heading into Q2 earnings season, chemical margins generally look positive for most chemical sectors with olefins/polyolefins leading and the chlor-alkali chain less profitable. Macroeconomics and Geopolitics The International Monetary Fund (IMF) reports Q1 global GDP growth at 2.2%, 0.8% below the April forecast. The year 2015 now looks to…
Chemical Industry Summary US and global commodity chemical companies generally reported favorable financial results in the Q2 earnings season, with several companies reporting record results. Commodity chemical prices proved to be relatively stable despite ongoing feedstock price erosion. Demand for polyolefins in all regions was relatively firm and producers’ inventories at the end of…
Chemical Industry Summary Reflecting a lower cost basis, global commodity chemical prices continue to wilt as the global chemical industry adjusts to lower crude oil prices. Spot ethylene in Asia has recently traded near US$800 per MT, down from US$1,400 in July. Margins have eased for producers in all regions. The Asian ethylene/naphtha spread…
Chemical Industry Summary The deflation of global chemical prices continues following declining feedstock and oil/gas prices. Key olefins in the US are now hitting levels not seen since 2009 in some cases, not seen since 2003. Ethylene margins are starting to ease for US shale gas-based chemical producers as lower international prices have resulted…
Chemical Industry Summary Publicly traded US commodity chemical producers reported surprisingly good financial results for the recently completed third quarter. Margins in Q3 for the US polyolefin chain decreased sequentially with polymer prices falling more than feedstock costs. However, for Europe, the story was reversed with declining oil and naphtha prices falling faster than…
Chemical Industry Summary As witnessed by record inventory, the global oversupply of crude oil continues to weigh on expectations for a price recovery in the near term. This is both a supply and a demand-driven problem with consensus expectations indicating that 2016 is highly unlikely to show significant improvement in energy pricing. Companies in…
Chemical Industry Summary Lack of confidence in global chemical demand and weakness in the energy sector have spurred a generally gloomy outlook for global chemicals in 2016. The continuing weakness in the Chinese demand, especially for commodities, has resulted in weakness in global stock markets and especially on the Shanghai Exchange. Very high global…