Idle Capacity Shows Up in the Footnotes First
A specialty chemicals maker in Illinois pulled ten reporting periods on Friday because it had been capitalizing fixed overhead without regard to normal capacity. The correction took $3.5m out of inventory and the same $3.5m out of equity. Plus a Chinese owner restarts 150,000 tonnes of British pigment inside a dumping case its competitor filed, iodine prints a record $73.40 a kilogram, and carbon black borrows at 4.95% to repay 3.40%.
Nothing closed this week. Six documents landed instead, and four of them are about plants running at a rate nobody planned for.
The first is the one to read twice, because the mechanism inside it applies to every underloaded reactor in the country.
Here is what moved, and what each one costs you.
The rest of this brief is for subscribers.
The capacity math, the trade-flow read, and what it means for the products you buy.
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