Strait Talk on Chemicals—Strait Traffic Up, CMA S/D/Op Rate Updates, Pricing

Research evidence excerpt

Strait Talk on Chemicals—Strait Traffic Up, CMA S/D/Op Rate Updates, Pricing

May 20, 2026 | 04:00 ET~

US Chemicals

Strait Talk on Chemicals—Strait Traffic Up, CMA S/D/ US Chemicals

Op Rate Updates, Pricing 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 this edition of Strait Talk, we comment on an update we saw from CMA regarding Caleb Boehnlein Senior Associate

supply, demand, and operating rates in 2Q for a host of chemical platforms (PE/PP) as caleb.boehnlein@bmo.com (347) 906-1860

well as forecasts for NA rates in 3Q for PE/PP/PVC/Chlor-Alkali. We also saw Strait traffic Margarita Margulis Associate

improve vs last week largely helped by Iran working with regional partners and Trump's margarita.margulis@bmo.com (332) 257-0592

visit to China. Regarding asset production levels, we saw a number of assets in Asia taken Legal Entity: BMO Capital Markets Corp.

down to lower rate. Finally, we saw a number of corporate price hikes (CE, XOM) and

mixed commodity price moves. What's Inside

Given the accelerating flow of information—

Key Points from plant closures and commodity pricing to

demand trends and management & industry expert

commentary—our "Strait Talk on Chemicals" series is

News From the Iran Conflict designed to keep pace with these rapidly evolving

developments; the report will be updated frequently

Over the past few days UAE reported a drone strike on the Barakah Nuclear Power Plant to deliver timely, actionable, and time-sensitive news

(electrical generator), while Saudi Arabia reported intercepting three drones coming from and insights.

Iraqi airspace, as U.S. President Donald Trump warned that Iran must act "fast" after peace