Epoxy

February 26, 2021

BASF Results

BASF proposes stable dividend despite pandemic, sees support from organic growth

Author: Nigel Davis

2021/02/26

LONDON (ICIS)–BASF management on Friday said a €3.30/share dividend would be proposed to the annual meeting as the company generated what it called a solid cash flow in 2020 despite the pandemic.

The company reported strong earnings in the fourth quarter of the year after facing the difficult operating environment brought about by the coronavirus pandemic earlier in 2020

Financial analysts had been predicting a dividend cut. The pay out would be flat compared with 2019 but the yield would be 5.1% based on the year end share price of €64.72

The expected earnings power of the ongoing businesses and their cashflow will be sufficient to cover investments and dividend payments, CEO, Martin Brudermuller, said, outlining future dividend policy. BASF has also, effectively, put the brakes on capital spending in 2021.

“Based on our medium-term financial planning, we will also have scope to reduce our financial indebtedness,” he added.

BASF is developing what could be seen as a more sustainable business model. No major investments are planned, rather bolt-on acquisitions that add to the company’s technical expertise and regional manufacturing capabilities.

Currently, BASF is in the midst of its largest ever investment – at Nanjing in China – and is investing in battery materials.

The divestments it has on hand include the pigments business and the IPO (initial public offering) of Wintershall DEA.

“The new Verbund site in southern China and our investments in battery materials will provide additional momentum for BASF’s future growth. We will finance the strong organic growth in these areas with proceeds from our divestitures.” Brudermuller said.

“Despite high investments in these growth activities in the coming years, we expect that our portfolio will be less capital-intensive after this transformation.”

BASF has also agreed to pay performance bonuses to staff despite lower returns in 2020. The return on capital employed (ROCE) for the year sank to 1.7% compared with 7.7% in 2019, with earnings impacted by non-cash impairments of €2.9bn.

Employee performance-related compensation is determined by ROCE and for the year was below the pay-out threshold.

The BASF board, however, had agreed to pay bonuses totalling €360m as a sign it said of recognition and appreciation of work done through the pandemic. “With this bonus, we want to acknowledge the huge effort put in by the BASF team in the pandemic year 2020, which was difficult for everyone,” Brudermuller said.

The company’s share price dipped in early trading on Friday, falling 1.3% as of 12:30 GMT, despite the stable dividend and stronger fourth-quarter earnings. The tepid market response was due to conservative 2021 earnings projections undershooting analyst expectations, according to Baader Bank’s Markus Mayer.

“After BASF’s share price outperformed over the last weeks, we expect profit taking on today’s reporting,” he said.

“The reason might be prudent earnings guidance… which assumes significant disruptions to global supply chains,” he added.

https://www.icis.com/explore/resources/news/2021/02/26/10611465/basf-proposes-stable-dividend-despite-pandemic-sees-support-from-organic-growth

February 26, 2021

BASF Results

BASF proposes stable dividend despite pandemic, sees support from organic growth

Author: Nigel Davis

2021/02/26

LONDON (ICIS)–BASF management on Friday said a €3.30/share dividend would be proposed to the annual meeting as the company generated what it called a solid cash flow in 2020 despite the pandemic.

The company reported strong earnings in the fourth quarter of the year after facing the difficult operating environment brought about by the coronavirus pandemic earlier in 2020

Financial analysts had been predicting a dividend cut. The pay out would be flat compared with 2019 but the yield would be 5.1% based on the year end share price of €64.72

The expected earnings power of the ongoing businesses and their cashflow will be sufficient to cover investments and dividend payments, CEO, Martin Brudermuller, said, outlining future dividend policy. BASF has also, effectively, put the brakes on capital spending in 2021.

“Based on our medium-term financial planning, we will also have scope to reduce our financial indebtedness,” he added.

BASF is developing what could be seen as a more sustainable business model. No major investments are planned, rather bolt-on acquisitions that add to the company’s technical expertise and regional manufacturing capabilities.

Currently, BASF is in the midst of its largest ever investment – at Nanjing in China – and is investing in battery materials.

The divestments it has on hand include the pigments business and the IPO (initial public offering) of Wintershall DEA.

“The new Verbund site in southern China and our investments in battery materials will provide additional momentum for BASF’s future growth. We will finance the strong organic growth in these areas with proceeds from our divestitures.” Brudermuller said.

“Despite high investments in these growth activities in the coming years, we expect that our portfolio will be less capital-intensive after this transformation.”

BASF has also agreed to pay performance bonuses to staff despite lower returns in 2020. The return on capital employed (ROCE) for the year sank to 1.7% compared with 7.7% in 2019, with earnings impacted by non-cash impairments of €2.9bn.

Employee performance-related compensation is determined by ROCE and for the year was below the pay-out threshold.

The BASF board, however, had agreed to pay bonuses totalling €360m as a sign it said of recognition and appreciation of work done through the pandemic. “With this bonus, we want to acknowledge the huge effort put in by the BASF team in the pandemic year 2020, which was difficult for everyone,” Brudermuller said.

The company’s share price dipped in early trading on Friday, falling 1.3% as of 12:30 GMT, despite the stable dividend and stronger fourth-quarter earnings. The tepid market response was due to conservative 2021 earnings projections undershooting analyst expectations, according to Baader Bank’s Markus Mayer.

“After BASF’s share price outperformed over the last weeks, we expect profit taking on today’s reporting,” he said.

“The reason might be prudent earnings guidance… which assumes significant disruptions to global supply chains,” he added.

https://www.icis.com/explore/resources/news/2021/02/26/10611465/basf-proposes-stable-dividend-despite-pandemic-sees-support-from-organic-growth

February 26, 2021

Yet Another Gulf Update

Post-freeze petrochemical restart efforts continue on US Gulf Coast

Houston — US Gulf Coast petrochemical producers continued efforts Feb. 25 to assess damage from sustained sub-freezing temperatures in the week of Feb. 15 and moved ahead with plant restarts when able.

Market sources said Dow Chemical was restarting its three crackers in Freeport, Texas, which have a combined 3.2 million mt/year of ethylene capacity. Sources also said ExxonMobil had restarted its 826,000 mt/year cracker at its refining and chemical complex in Beaumont, Texas.

Sources said news of restarts was expected to emerge piecemeal through the week of March 8 and beyond given that shutdowns were so widespread and damage assessments could be lengthy. In addition, producers were expected to assess downstream units as well before restarting crackers to gauge whether repairs were needed before they could receive feedstock.

In addition, supply chains needed to clear freeze-related backlogs on the US Gulf Coast and inland, as the frigid weather affected much of the US, sources noted.

“This is a very widespread situation,” a source said. “It will not be a quick fix.”

Increases in feedstock ethylene and propylene prices were expected to cascade to downstream derivatives on that added cost in addition to tight supply across the petrochemical spectrum, sources said. February spot ethylene prices hit a six-year high of 50 cents/lb FD Mont Belvieu on Feb. 25, up a penny on the day. And the February contract for propylene retroactively settled up 28 cents from January at 88.50 cents/lb.

Here is a rundown of fallout from the freeze:

FORCE MAJEURES

** Dow Chemical: Declared Feb. 19, on 2-ethylhexanol and butanol products from its Texas City, Texas complex

** Formosa Plastics USA: Declared Feb. 19 on US polyethylene

** BASF: Declared Feb. 19 on dioctyl terephthalate (DOTP), a plasticizer, at its Pasadena, Texas, site

** Westlake Chemical: Declared Feb. 19 on US caustic soda, chlorine, PVC and VCM; company has 2.9 million mt/year of US caustic soda capacity, more than 2 million mt/year of PVC capacity, 2.6 million mt/year of VCM; more than 2.26 million mt/year of chlorine capacity at five affected sites

** Formosa Plastics USA: Declared Feb. 18 on US PVC, 1.3 million mt/year of capacity at Point Comfort, Texas, and Baton Rouge, Louisiana, complexes

** Dow Chemical: Declared Feb. 18 on multiple intermediate chemicals produced at plants in Deer Park, Freeport, Texas City and Bayport Texas, Hahnville, Louisiana, and Louisville, Kentucky; declaration includes vinyl acetate monomer (VAM), methyl methacrylate (MMA), glacial methacrylic acid (GMAA), butyl methacrylate (BMA), glycidyl methacrylate (GMA), 2-ethylhexyl Acrylate (2EHA), butyl acrylate (BA), and others; Dow informed South American customers

** Celanese: Declared force majeure Feb. 18 on multiple intermediate chemicals normally sold to customers in the US, Europe and the Middle East, including acetic acid, VAM, ethyl acetate and ethylene vinyl acetate (EVA)

** Total: Declared Feb. 17 on polypropylene produced at its 1.15 million mt/year La Porte, Texas, facility

** Formosa Plastics USA: Declared Feb. 17 on all chlor-alkali products

** LyondellBasell: Declared Feb. 16 on styrene monomer

** Vestolit: Declared Feb. 16 on PVC produced at its Colombia and Mexico plants on lack of upstream vinyl chloride monomer feedstock from US suppliers; plants have a combined 1.8 million mt/year of capacity

** Olin: Declared Feb. 16 on US chlorine, caustic soda, ethylene dichloride, epoxy, hydrochloric acid and other products produced at its Freeport, Texas, complex; on Feb. 18 Olin expanded the declaration in a separate letter to customers to include products made system-wide

** MEGlobal: Declared Feb. 15 on MEG produced at its Freeport, Texas, site

** LyondellBasell: Declared Feb. 15 on US polyethylene

** Flint Hills Resources: Declared Feb. 15 on polypropylene produced at Longview, Texas

** OxyChem: Declared Feb. 15 on US chlorine, caustic soda, EDC, vinyl chloride monomer and polyvinyl chloride

** LyondellBasell: Declared Feb. 15 on US polypropylene

** INEOS Olefins and Polymers USA: Declared Feb. 15 on polypropylene

** OQ Chemicals: Declared Feb. 15 on US oxo-alcohols, aldehydes, acids and esters produced at its Bat City, Texas, operations

SHUTDOWNS

** Westlake Chemical: 331,763 mt/year cracker, 249,475 mt/year chlorine, 274,423 mt/year caustic soda, 680,388 mt/year vinyl chloride monomer, 680,388 mt/year polyvinyl chloride, Calvert City, Kentucky

** Eastman Chemical: 7.33 million mt/year ethylene capacity, Longview, Texas

** INEOS: 1.89 million mt/year of ethylene capacity, Chocolate Bayou, Texas

** LyondellBasell: 3.26 million mt/year of ethylene capacity in Channelview, La Porte and Corpus Christi, Texas

** MEGlobal: 750,000 mt/year monoethylene glycol (MEG) plant, Freeport, Texas

** Total: 1.15 million mt/year PP, La Porte, Texas

** Lotte Chemical: 700,000 mt/year MEG, Lake Charles, Louisiana; 1 million mt/year joint-venture cracker

** Braskem: 360,000 mt/year PP Freeport, Texas; 400,000 mt/year PP La Porte, Texas; 225,000 mt/year PP Seadrift, Texas

** ExxonMobil: Cumulative 1.53 million mt/year from three units, HDPE and LLDPE capacity, Mont Belvieu, Texas

** Indorama Ventures: Port Neches, Texas, 235,867 mt/year cracker, 1 million mt/year ethylene oxide/MEG unit, 238,135 mt/year propylene oxide unit, and 988,000 mt/year of MTBE capacity; Clear Lake, Texas, 435,000 mt/year EO, 358,000 mt/year MEG

** Olin: Freeport, Texas complex, with 3 million mt/year of caustic soda and 2.73 million mt/year of chlorine capacity; 748,000 mt/year of EDC

** OxyChem: Ingleside, Texas, 544,000 mt/year cracker; 248,000 mt/year chlor-alkali; 680,000 mt/year EDC; Deer Park and Pasadena, Texas, 1.27 million mt in PVC capacity; 1.79 million mt/year of VCM capacity; 580,000 mt/year chlor-alkali

** Shintech: Freeport, Texas: 1.45 million mt/year PVC

** Formosa Plastics USA: Entire Point Comfort, Texas, complex, including three crackers with a cumulative capacity of 2.76 million mt/year; 875,000 mt/year of high density polyethylene; 400,000 mt/year of low density PE; 465,000 mt/year of linear low density PE; two PP units with combined capacity of 1.7 million mt/year; 798,000 mt/year of PVC; 1 million mt/year of caustic soda and 910,000 mt/year of chlorine; 753,000 mt/year of VCM; 1.478 million mt/year of EDC; and a cumulative 1.17 million mt/year of monoethylene glycol operated by sister company Nan Ya Plastics

** Dow Chemical: Certain units offline within Dow sites along the US Gulf Coast, but the company did not specify. Dow’s Gulf Coast operations two LDPE units with 552,000 mt/year and 186,000 mt/year HDPE; Dow’s Seadrift, Texas, complex includes 490,000 mt/year LLDPE and 390,000 mt/year HDPE; Dow told South American customers in a letter dated Feb. 16 that the company was assessing impact on PE production capacity “and we know that our ability to supply various products could be affected.”

** TPC Group: Houston site shut down, including 544,310 mt/year butadiene unit, when boilers lost steam

** Motiva Chemicals: Port Arthur, 635,000 mt/year mixed-feed cracker

** Shell: Deer Park, Texas, refining and chemical complex, including two crackers with a combined 961,000 mt/year of capacity

** Shell: Norco, Louisiana, refining and chemical complex, including two crackers with a combined capacity of 1.42 million mt/year

** Chevron Phillips Chemical: Pasadena, Texas, 998,000 mt/year HDPE; also has cumulative 5.35 million mt/year in capacity of six crackers in Port Arthur, Baytown and Sweeny, Texas

RESTARTS

** Dow Chemical: Restarting three crackers at Freeport, Texas, with a combined 3.2 million mt/year of ethylene capacity

** Flint Hills Resources: Restarting 658,000 mt/year PDH unit, Houston

** Dow Chemical: Restarting 750,000 PDH, Freeport, Texas

** Braskem: Restarting 450,000 mt/year PP, La Porte, Texas

** Dow Chemical: restarting 680,000 mt/year cracker in Orange, Texas

** ExxonMobil: Beaumont, Texas, restart activity begun; 826,000 mt/year cracker operational; 225,000 mt/year HDPE; 240,000 mt/year LDPE; 1.19 million mt/year LLDPE with some HDPE capacity

** ExxonMobil: Baytown, Texas, restart activity begun; three crackers with a combined capacity of 3.8 million mt/year; 800,000 mt/year PP

** Sasol: Restarts for 380,000 mt/year EO/MEG, Lake Charles, Louisiana

** Formosa Plastics USA: 513,000 mt/year PVC, 653,000 mt/year VCM, Baton Rouge, Louisiana

** LyondellBasell: Lake Charles, Louisiana, joint-venture 470,000 mt/year LLDPE; 420,000 mt/year LDPE

PRICES

** The US propylene contract price for February settled up 28 cents/lb from January at 88.50 cents/lb

** US spot polymer-grade propylene prices for February fell 8.25 cents/lb on the day Feb. 25 to 93.75 cents FD USG, while March prices fell the same amount to 86 cents/lb FD USG. February prices had reached an all-time high of $1.25/lb on Feb. 23 before news emerged that two of the three US PDH plants were restarting.

** US spot ethylene prices for February rose 1 cent/lb to 51 cents/lb FD Mont Belvieu and rose 3.50 cents/lb to 50.5 cents/lb FD Choctaw; forward-month March prices rose 3.25 cents/lb to 51 cents FD Mont Belvieu and rose 3.50 cents/lb to 49.75 cents/lb FD Choctaw

** US export normal butanol and 2-ethylhexanol prices surged on the week Feb. 25 in line with higher global pricing on the lack of US availability on freeze fallout. NBA prices were assessed up $585/mt at $1,995/mt FOB USG, and 2-EH prices rose $415/mt to $1,995/mt FOB USG

** US acetic acid prices strengthened to a more than two-year high Feb. 25, rising $230/mt to $900/mt FOB USG and 10.43 cents/lb to 40.82 cents/lb on a domestic delivered basis

https://www.spglobal.com/platts/en/products-services/petrochemicals/global-polyolefins-outlook

February 26, 2021

Yet Another Gulf Update

Post-freeze petrochemical restart efforts continue on US Gulf Coast

Houston — US Gulf Coast petrochemical producers continued efforts Feb. 25 to assess damage from sustained sub-freezing temperatures in the week of Feb. 15 and moved ahead with plant restarts when able.

Market sources said Dow Chemical was restarting its three crackers in Freeport, Texas, which have a combined 3.2 million mt/year of ethylene capacity. Sources also said ExxonMobil had restarted its 826,000 mt/year cracker at its refining and chemical complex in Beaumont, Texas.

Sources said news of restarts was expected to emerge piecemeal through the week of March 8 and beyond given that shutdowns were so widespread and damage assessments could be lengthy. In addition, producers were expected to assess downstream units as well before restarting crackers to gauge whether repairs were needed before they could receive feedstock.

In addition, supply chains needed to clear freeze-related backlogs on the US Gulf Coast and inland, as the frigid weather affected much of the US, sources noted.

“This is a very widespread situation,” a source said. “It will not be a quick fix.”

Increases in feedstock ethylene and propylene prices were expected to cascade to downstream derivatives on that added cost in addition to tight supply across the petrochemical spectrum, sources said. February spot ethylene prices hit a six-year high of 50 cents/lb FD Mont Belvieu on Feb. 25, up a penny on the day. And the February contract for propylene retroactively settled up 28 cents from January at 88.50 cents/lb.

Here is a rundown of fallout from the freeze:

FORCE MAJEURES

** Dow Chemical: Declared Feb. 19, on 2-ethylhexanol and butanol products from its Texas City, Texas complex

** Formosa Plastics USA: Declared Feb. 19 on US polyethylene

** BASF: Declared Feb. 19 on dioctyl terephthalate (DOTP), a plasticizer, at its Pasadena, Texas, site

** Westlake Chemical: Declared Feb. 19 on US caustic soda, chlorine, PVC and VCM; company has 2.9 million mt/year of US caustic soda capacity, more than 2 million mt/year of PVC capacity, 2.6 million mt/year of VCM; more than 2.26 million mt/year of chlorine capacity at five affected sites

** Formosa Plastics USA: Declared Feb. 18 on US PVC, 1.3 million mt/year of capacity at Point Comfort, Texas, and Baton Rouge, Louisiana, complexes

** Dow Chemical: Declared Feb. 18 on multiple intermediate chemicals produced at plants in Deer Park, Freeport, Texas City and Bayport Texas, Hahnville, Louisiana, and Louisville, Kentucky; declaration includes vinyl acetate monomer (VAM), methyl methacrylate (MMA), glacial methacrylic acid (GMAA), butyl methacrylate (BMA), glycidyl methacrylate (GMA), 2-ethylhexyl Acrylate (2EHA), butyl acrylate (BA), and others; Dow informed South American customers

** Celanese: Declared force majeure Feb. 18 on multiple intermediate chemicals normally sold to customers in the US, Europe and the Middle East, including acetic acid, VAM, ethyl acetate and ethylene vinyl acetate (EVA)

** Total: Declared Feb. 17 on polypropylene produced at its 1.15 million mt/year La Porte, Texas, facility

** Formosa Plastics USA: Declared Feb. 17 on all chlor-alkali products

** LyondellBasell: Declared Feb. 16 on styrene monomer

** Vestolit: Declared Feb. 16 on PVC produced at its Colombia and Mexico plants on lack of upstream vinyl chloride monomer feedstock from US suppliers; plants have a combined 1.8 million mt/year of capacity

** Olin: Declared Feb. 16 on US chlorine, caustic soda, ethylene dichloride, epoxy, hydrochloric acid and other products produced at its Freeport, Texas, complex; on Feb. 18 Olin expanded the declaration in a separate letter to customers to include products made system-wide

** MEGlobal: Declared Feb. 15 on MEG produced at its Freeport, Texas, site

** LyondellBasell: Declared Feb. 15 on US polyethylene

** Flint Hills Resources: Declared Feb. 15 on polypropylene produced at Longview, Texas

** OxyChem: Declared Feb. 15 on US chlorine, caustic soda, EDC, vinyl chloride monomer and polyvinyl chloride

** LyondellBasell: Declared Feb. 15 on US polypropylene

** INEOS Olefins and Polymers USA: Declared Feb. 15 on polypropylene

** OQ Chemicals: Declared Feb. 15 on US oxo-alcohols, aldehydes, acids and esters produced at its Bat City, Texas, operations

SHUTDOWNS

** Westlake Chemical: 331,763 mt/year cracker, 249,475 mt/year chlorine, 274,423 mt/year caustic soda, 680,388 mt/year vinyl chloride monomer, 680,388 mt/year polyvinyl chloride, Calvert City, Kentucky

** Eastman Chemical: 7.33 million mt/year ethylene capacity, Longview, Texas

** INEOS: 1.89 million mt/year of ethylene capacity, Chocolate Bayou, Texas

** LyondellBasell: 3.26 million mt/year of ethylene capacity in Channelview, La Porte and Corpus Christi, Texas

** MEGlobal: 750,000 mt/year monoethylene glycol (MEG) plant, Freeport, Texas

** Total: 1.15 million mt/year PP, La Porte, Texas

** Lotte Chemical: 700,000 mt/year MEG, Lake Charles, Louisiana; 1 million mt/year joint-venture cracker

** Braskem: 360,000 mt/year PP Freeport, Texas; 400,000 mt/year PP La Porte, Texas; 225,000 mt/year PP Seadrift, Texas

** ExxonMobil: Cumulative 1.53 million mt/year from three units, HDPE and LLDPE capacity, Mont Belvieu, Texas

** Indorama Ventures: Port Neches, Texas, 235,867 mt/year cracker, 1 million mt/year ethylene oxide/MEG unit, 238,135 mt/year propylene oxide unit, and 988,000 mt/year of MTBE capacity; Clear Lake, Texas, 435,000 mt/year EO, 358,000 mt/year MEG

** Olin: Freeport, Texas complex, with 3 million mt/year of caustic soda and 2.73 million mt/year of chlorine capacity; 748,000 mt/year of EDC

** OxyChem: Ingleside, Texas, 544,000 mt/year cracker; 248,000 mt/year chlor-alkali; 680,000 mt/year EDC; Deer Park and Pasadena, Texas, 1.27 million mt in PVC capacity; 1.79 million mt/year of VCM capacity; 580,000 mt/year chlor-alkali

** Shintech: Freeport, Texas: 1.45 million mt/year PVC

** Formosa Plastics USA: Entire Point Comfort, Texas, complex, including three crackers with a cumulative capacity of 2.76 million mt/year; 875,000 mt/year of high density polyethylene; 400,000 mt/year of low density PE; 465,000 mt/year of linear low density PE; two PP units with combined capacity of 1.7 million mt/year; 798,000 mt/year of PVC; 1 million mt/year of caustic soda and 910,000 mt/year of chlorine; 753,000 mt/year of VCM; 1.478 million mt/year of EDC; and a cumulative 1.17 million mt/year of monoethylene glycol operated by sister company Nan Ya Plastics

** Dow Chemical: Certain units offline within Dow sites along the US Gulf Coast, but the company did not specify. Dow’s Gulf Coast operations two LDPE units with 552,000 mt/year and 186,000 mt/year HDPE; Dow’s Seadrift, Texas, complex includes 490,000 mt/year LLDPE and 390,000 mt/year HDPE; Dow told South American customers in a letter dated Feb. 16 that the company was assessing impact on PE production capacity “and we know that our ability to supply various products could be affected.”

** TPC Group: Houston site shut down, including 544,310 mt/year butadiene unit, when boilers lost steam

** Motiva Chemicals: Port Arthur, 635,000 mt/year mixed-feed cracker

** Shell: Deer Park, Texas, refining and chemical complex, including two crackers with a combined 961,000 mt/year of capacity

** Shell: Norco, Louisiana, refining and chemical complex, including two crackers with a combined capacity of 1.42 million mt/year

** Chevron Phillips Chemical: Pasadena, Texas, 998,000 mt/year HDPE; also has cumulative 5.35 million mt/year in capacity of six crackers in Port Arthur, Baytown and Sweeny, Texas

RESTARTS

** Dow Chemical: Restarting three crackers at Freeport, Texas, with a combined 3.2 million mt/year of ethylene capacity

** Flint Hills Resources: Restarting 658,000 mt/year PDH unit, Houston

** Dow Chemical: Restarting 750,000 PDH, Freeport, Texas

** Braskem: Restarting 450,000 mt/year PP, La Porte, Texas

** Dow Chemical: restarting 680,000 mt/year cracker in Orange, Texas

** ExxonMobil: Beaumont, Texas, restart activity begun; 826,000 mt/year cracker operational; 225,000 mt/year HDPE; 240,000 mt/year LDPE; 1.19 million mt/year LLDPE with some HDPE capacity

** ExxonMobil: Baytown, Texas, restart activity begun; three crackers with a combined capacity of 3.8 million mt/year; 800,000 mt/year PP

** Sasol: Restarts for 380,000 mt/year EO/MEG, Lake Charles, Louisiana

** Formosa Plastics USA: 513,000 mt/year PVC, 653,000 mt/year VCM, Baton Rouge, Louisiana

** LyondellBasell: Lake Charles, Louisiana, joint-venture 470,000 mt/year LLDPE; 420,000 mt/year LDPE

PRICES

** The US propylene contract price for February settled up 28 cents/lb from January at 88.50 cents/lb

** US spot polymer-grade propylene prices for February fell 8.25 cents/lb on the day Feb. 25 to 93.75 cents FD USG, while March prices fell the same amount to 86 cents/lb FD USG. February prices had reached an all-time high of $1.25/lb on Feb. 23 before news emerged that two of the three US PDH plants were restarting.

** US spot ethylene prices for February rose 1 cent/lb to 51 cents/lb FD Mont Belvieu and rose 3.50 cents/lb to 50.5 cents/lb FD Choctaw; forward-month March prices rose 3.25 cents/lb to 51 cents FD Mont Belvieu and rose 3.50 cents/lb to 49.75 cents/lb FD Choctaw

** US export normal butanol and 2-ethylhexanol prices surged on the week Feb. 25 in line with higher global pricing on the lack of US availability on freeze fallout. NBA prices were assessed up $585/mt at $1,995/mt FOB USG, and 2-EH prices rose $415/mt to $1,995/mt FOB USG

** US acetic acid prices strengthened to a more than two-year high Feb. 25, rising $230/mt to $900/mt FOB USG and 10.43 cents/lb to 40.82 cents/lb on a domestic delivered basis

https://www.spglobal.com/platts/en/products-services/petrochemicals/global-polyolefins-outlook

February 25, 2021

Durable Goods Surge

US Durable Goods Orders Surge In January To Pre-COVID Highs

by Tyler DurdenThursday, Feb 25, 2021 – 8:37

Having slowed for 3 straight months, analysts expected US durable goods orders to re-accelerate and they were not wrong as preliminary January data showed a huge 3.4% MoM jump (more than triple the +1.1% MoM expected).

Source: Bloomberg

That is the ninth straight monthly rise in durable goods orders after the March/April collapse, with orders up 4.5% YoY to pre-COVID highs…

Source: Bloomberg

Core capital goods orders, a category that excludes aircraft and military hardware and is seen as a barometer of business investment, rose 0.5% after an upwardly revised 1.5% gain.

https://www.zerohedge.com/economics/us-durable-goods-orders-surge-january-pre-covid-highs