Aziza Gazieva

Aziza Gazieva, representing Fermium Research, asked for insights into Celanese's expectations for Chinese acetyls pricing throughout 2026. She also inquired whether the company had quantified the earnings impact of the second-quarter POM turnaround.

Answer

Scott Richardson, President and CEO of Celanese, stated that Chinese acetyls pricing is expected to remain stable within recent ranges, with no significant uplifts anticipated, and noted stable pricing despite low demand during Chinese New Year. Regarding the Q2 POM turnaround, Mr. Richardson indicated an earnings impact similar to the $30 million Q1 inventory benefit, clarifying that these major turnarounds occur every five years due to enhanced reliability and are confined to Q2.

Aziza Gazieva of Fermium Research inquired about the outlook for Chinese VAM margins given new capacity and asked for expectations on raw material costs for Q4 and early 2025.

Answer

CEO Lori Ryerkerk stated that a recovery in VAM margins is dependent on a broader demand rebound and is difficult to predict. COO Scott Richardson noted that raw material costs are expected to be stable in Q4, with the 2025 outlook dependent on energy markets, and the company is actively managing its product mix to maximize profitability.

Aziza Gazieva inquired about the outlook for epoxy resins inflation and the various factors contributing to PPG's expectation of low single-digit raw material inflation.

Answer

Chairman and CEO Tim Knavish explained that epoxy resins were impacted by anti-dumping and tariffs prior to the current administration, which was already factored into the low single-digit inflation guidance. He noted that the supply-demand calculus favors PPG, with upstream suppliers prioritizing volume deals over price increases. CFO Vince Morales added that PPG is contracting its supplier base to share more volume with fewer suppliers, which is expected to further contribute to a favorable raw material environment.

Aziza Gazieva from Fermium Research inquired about the outlook for epoxy resin inflation, which had been slightly inflating, and the overall puts and takes contributing to the expectation of low single-digit inflation for raw materials.

Answer

Chairman and CEO Tim Knavish explained that epoxy resins were impacted by anti-dumping and tariffs prior to the current administration, which was already factored into the low single-digit inflation guidance. He noted that epoxy's impact is a differentiator for PPG, as it's used in automotive, packaging, PMC, and industrial coatings, not architectural. Knavish added that the supply-demand calculus favors PPG, with upstream suppliers prioritizing volume deals over price increases. CFO Vince Morales highlighted that contracting the supplier base post-supply chain crisis will also contribute to a favorable raw material environment.

Aziza Gazieva of Fermium Research asked about the potential for pre-buying activity ahead of tariffs impacting Q2 results and sought an update on the company's full-year outlook for raw material inflation.

Answer

President, CEO & Chairman Ashish Khandpur stated that Avient saw no evidence of pre-buying, as customers are managing inventory tightly with only 20-30 days of order visibility. SVP & CFO Jamie Beggs added that the company's local-for-local production model limits tariff exposure. Beggs also confirmed the raw material inflation outlook remains at 1-2% for the year, with lower hydrocarbon costs being offset by increases in pigments and flame retardants.

Aziza Gazieva, on for Frank Mitsch, questioned the current state of the zircon market and potential catalysts for its revival, and also asked if other production sites were being considered for idling following the Botlek decision.

Answer

CEO John Romano explained that the zircon market is seeing more measured, historical growth patterns in 2025 after a strong pull-forward in early 2024, with China being the main area yet to recover. Both Romano and CFO John Srivisal confirmed there are no plans to idle other plants, stating the focus is on executing their cost improvement program to make all assets more competitive.

Aziza Gazieva, on for Frank Mitsch, asked for the timing and associated costs of the new PVCO pipe plant project and requested commentary on the outlook for the corporate EBITDA line in 2025.

Answer

EVP and CFO Steve Bender stated the PVCO plant in Wichita Falls, Texas, is expected to start up in 2026 but did not disclose the capital cost. For the corporate line, he noted that the company's significant cash balance is earning interest, which contributes to corporate results, while Westlake seeks better ways to deploy that capital.