Daily Chemical Reactions

Cross Road Blues – Western Commodity Chemical Profit Surges, But The Equities Fail to Keep Pace
July 23, 2021
Commodities Mentioned:
Methanol, Acetic Acid, Plastics (PVC, PP, PE, PS, PET, etc.), Propylene, Ethylene, Benzene, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Celanese, Braskem, Dow, Honeywell, Johnson Matthey, Lonza, Lukoil, Methanex, McDermott, Oxiteno, Indorama, Atul, Posco Chemical, TPI Composites, Precision Drilling, Schlumberger, Sinopec, LyondellBasell, SABIC, Ascend, Hyundai Chemical, PBF Energy, NextEra Energy, Tesla, TotalEnergies, AmEx, Indian Oil

Daily Chemical Reaction

Cross Road Blues – Western Commodity Chemical Profit Surges, But The Equities Fail to Keep Pace

Key Points:

  • Western commodity chemical industry profitability remains near historic highs, but equity performance in this subsector has underperformed peers. We discuss headwinds facing commodity sector equity performance in 2H21.   
  • We highlight pertinent chemical sector corporate updates (e.g., Celanese, Braskem, Honeywell, Posco Chemicals, TPI Composites, & other items).  
  • Sector demand indicators broadly remain robust, but we flag varied cost inflation and a mixed demand setting facing chemical product chains in 2H21. 
  • We find numerous ESG announcements worth mention, ranging from the WoW decline in EU CO2 prices to multiple global project updates.
  • Along with publishing our latest ESG weekly, we launch a multi-client initiative on carbon abatement in conjunction with the Power Research Group.
  • We note numerous other pertinent chemical sector items in this report.

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