Chemicals - Coverage Report March 2021

Published on: 03/19/2021

Capstone Headwaters has released its March 2021 Chemicals Industry Update, available for free download below.

Chemicals have played a critical role throughout the pandemic providing inputs for disinfection and sanitation, protective equipment, and medical supplies and equipment.  However, pandemic-induced manufacturing slowdowns and demand shocks have challenged chemical producers in 2020. While specialty chemicals saw depressed demand across nearly all end markets in Q2 and Q3 2020, Capstone expects end market recovery to fuel demand throughout 2021, driving merger and acquisition (M&A) activity.

Report highlights include:

  • Recovering demand, stabilizing export markets, and a favorable price environment for U.S. feedstocks provide a positive outlook for the Chemicals industry in 2021.
  • Ethane is expected to remain the dominant feedstock in 2021 as oil prices continue to recover due to a shrinking supply of oil in storage.
  • Consumers have shifted diets towards health-conscious and sustainable foods, increasing demand for plant-based and healthy chemical inputs with applications in the Food and Beverage industry.
  • M&A volume has exceeded prior year levels in 2021 year-to-date (YTD), providing optimism for a healthy deal environment throughout the remainder of the year.

To learn more about the contents of the report, please reach out to Managing Director Doug Usifer.

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Key Contacts

David Bench

Managing Director

Tracy Patch


Doug Usifer

Managing Director