Strait Talk on Chemicals—CE Announces 2nd Round, Cum. Totals on Down Chem Cap

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Strait Talk on Chemicals—CE Announces 2nd Round, Cum. Totals on Down Chem Cap

May 12, 2026 | 04:00 ET~

US Chemicals

Strait Talk on Chemicals—CE Announces 2nd Round, US Chemicals

Cum. Totals on Down Chem Cap John P. McNulty, CFA Analyst

john.mcnulty@bmo.com (646) 946-8428

Bhavesh Lodaya Analyst

Bottom Line: bhavesh.lodaya@bmo.com (347) 274-1393

In today's edition of Strait Talk, we see that the Iran Conflict continues to largely be Caleb Boehnlein Senior Associate

at a stalemate with the Strait's chances of opening appearing less likely in the near caleb.boehnlein@bmo.com (347) 906-1860

term. We see commodity prices largely holding (other than oil up) as buyers carefully Margarita Margulis Associate

have a "wait and see" stance. That said, we saw CE announce a chunky second round margarita.margulis@bmo.com (332) 257-0592

of price hikes across their portfolio, which could give lift to its 2Q/2H estimates if they Legal Entity: BMO Capital Markets Corp.

are successfully implemented. On the capacity/production front, we saw some mixed

results with some turnarounds ending while others are starting. We have also worked What's Inside

with S&P Global's data to highlight the cumulative chemical capacity tally that shows Given the accelerating flow of information—

total production offline by product--we will be refining/updating the details as we get from plant closures and commodity pricing to

new updates. demand trends and management & industry expert

commentary, our "Strait Talk on Chemicals" series is

Key Points designed to keep pace with these rapidly-evolving

developments, the report will be updated frequently

to deliver timely, actionable, and time-sensitive news

News From the Iran Conflict and insights.