Operator: Thank you. And the next question comes from Josh Spector with UBS.
Josh Spector: Yes, hi. Thanks for taking my question. I’m just curious on EDC. And has your participation rate in that market changed at all? I mean I think it was pretty minimal before, I guess, with the VCM outage, has that pushed more material into there or not? And when do you think about when you would get more involved in that market in the future?
Scott Sutton: Well, yes, I mean, thanks for the question. I wouldn’t say it’s changed that much. But I mean, look, our participation in the global EDC merchant market, we traditionally been the biggest player there. But recently, because of low values, we had reduced that. I think through this period, when we’re having challenges in our VCM operation, still our participation hasn’t changed all that much. I think the interesting thing about PBC is U.S. inventories have declined. And you’ve seen the PVC players all nominate recent price increases. So eventually, the non-integrated PVC players, where our EDC ends up are going to get back in business. We’ve just got to make sure we get the right product values when that phenomenon happens.
Josh Spector: Thanks, I appreciate that. And I guess when you talk about some of the win-wins potentially with Dow, do we be contemplating any increase in the amount of ethylene you can get from them? And I guess, what’s your desire for you to participate larger in whether EDC or VCM without a partner?
Scott Sutton: Well, I would say our ethylene arrangements are kind of good forever. It’s not forever. I forget how many years is left, but it was a long-term agreement for more than 20 years, right? So we’re set there. We do have the ability when it makes sense to partner with a vinyls player because again, we have incremental capability there. We have the ECUs, the ethylene, the EDC capability, some level of VCM capability already. So we sit on a little gold mine there. The timing is just not right.
Josh Spector: Understood. Thanks Scott.
Scott Sutton: Yep.
Operator: Thank you. And the next question comes from John Roberts with Credit Suisse.
John Roberts: Just confirm, nothing got renegotiated on the ethylene contract?
Scott Sutton: We – that was a contract that we had in place some time ago, and it wasn’t part of the discussion.
John Roberts: And then is any of the Parlay activity in epoxies? Or is it all in chlor alkali items?
Scott Sutton: Well, the majority of it is in chlor alkali. We’ve been successful at running that Parlay strategy in epoxy until capacity utilization got so low. And so we’ve reduced that participation there. It just doesn’t make sense to do it at the moment.
John Roberts: Do you have any longer-term targets for both total Parlay and the balance between Epoxy and chlor alkali?
Scott Sutton: Well, I wouldn’t say there’s a target for a balance between chlor alkali and epoxy. I would say that we’re going to do the right amount of Parlays so that we can keep a leadership strategy in place and keep our product values up even when our capacity utilization is low. So when our capacity utilization is very low, like it is now, you’re going to see big percentages. When it goes up, you might see some smaller percentages. However, I will say that Blue Water is out there trading more caustic and more EDC across the oceans and that trading activity will continue and grow no matter what our capacity utilization is.
John Roberts: Thank you.
Scott Sutton: Yep.
Operator: Thank you. And this concludes our question-and-answer session. I now would like to turn the floor to Scott Sutton for any closing comments.
Scott Sutton: Yes. Well, I would just say thanks a lot to everybody for joining. So I think, Keith that closes the call.
Operator: Okay. Thank you. And as mentioned, the conference has now concluded. Thank you for attending today’s presentation and you may now disconnect your lines.
