But it’s not because the markets are getting worse, Vincent, it’s just they’d assumed things would get a little bit better. They’re not and they’re sort of correcting for that. And it’s important that it’s a lack of expected growth as opposed to, I think, things are getting worse. I don’t see anyone saying things are getting worse at the — in the primary demand level. Does that make sense?
Vincent Andrews: Yes. Thanks so much.
Operator: Our next question comes from Frank Mitsch with Fermium Research. Your line is open.
Frank Mitsch: Hey, good morning. With much of the discussion regarding inventory management and so forth, I’m just curious, obviously, the Q hasn’t come out yet, so we don’t know where the second quarter inventory levels are. But can you give us an idea where they are relative to the 1.94 that was in the first quarter? And what are your expectations as to when you go through these actions, how much further down will you be drawing your own inventory?
William McLain: Good morning. Frank, it’s Willie. Yes, so as we think about inventory levels, I’ll call it from Q1 to Q2, inventories are about flat. So as we think about the level of the supply chains and the demands that Mark has just outlined, we have about $300 million that we would expect inventory to decline in the back half of the year. That’s also essential to getting us to generating roughly $100 million from working capital on a full year basis. And I’m confident that our business teams and supply chain that we have a plan in place that we’ve already activated to execute and deliver that cash flow.
Frank Mitsch: Terrific. Thank you. And Mark, I was wondering if you could talk to the raw material benefits that you’re seeing in your specialty businesses, any way you can provide some order of magnitude in terms of what sort of benefits are you seeing and what your outlook is there? Thank you.
Mark Costa: Yes. So, I think in Advanced Materials, we’re certainly seeing some pretty meaningful raw material benefits, Frank. If you remember last year, we had a tremendous spike upward in VAM and PVOH prices that created a pretty significant headwind for the Interlace part of that business. Those prices have now collapsed and dropped in price pretty significantly versus last year, and that’s seen translated into a tailwind for us to recover our margins there. PX has not been as much of a tailwind. Those prices have been holding up relative to last year. There’s been a bunch of outages in that industry. New plants having trouble starting up. Alternative fuel value, all those typical explanations with PX. So, not as much of a tailwind there, but we’re still well over $100 million of spread tailwind in that segment for the year.
And I think that is obviously helping with some of the demand challenges and building us into a very good margin position as we go into next year when mix comes back and how that flows through — how that — those margins will flow through to the bottom line in our fixed cost leverage. In AFP, again, we’ve got good raw material tailwinds in that business as well. But the spread improvement is not as significant because we really have a lot of cost pass-through contracts, especially in the means business. So, we had very stable margins last year. That means they’re also going to be stable this year by the nature of those contracts. But those spreads are also coming in relatively good when you think about ammonia, methanol and some of the olefin-related propane, ethane type products going into the specialty.
