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On a quarterly average, the second quarter reads as the strongest the commodity end of the sector has posted in several years, but the average is the wrong unit. Between April and June, the Strait of Hormuz moved from near closure to a partial, supervised reopening under the ceasefire framework reached in early April, and nearly every price series tied to it traced the same shape: a spike into mid-April, a decline through May and June, and, in several cases, a finish near or below where the quarter began. US Gulf urea roughly halved from its April peak to its late-June low. Asian cracker spreads swung from their widest level in years to negative territory and back within eight weeks. Observed tanker traffic through the Strait of Hormuz, which had fallen to a trickle, recovered to a fraction of its pre-conflict level by quarter-end. The path, not the average, is the story of the quarter.
Perspectives
Arya Abedin
Our Q2 report provides color on current performance and trends in the chemicals sector, as well as the M&A deal landscape. Call us to discuss how these developments could impact your business strategies and growth plans.
