Daily Chemical Reactions | Sunday Thematic & Weekly Recap

The New Wall: European Border Tax Could Disrupt US Exports
August 1, 2021
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polystyrene, PET, Ethylene, Propylene, Benzene, Carbon Dioxide, Hydrogen, Methanol, Natural Gas/NGLs, Crude/Naphtha, Chlorine, Caustic Soda, Carbon Offsets, Biofuels, Waste Oil, Jet Fuel, Diesel, Gasoline, Acetic Acid, Acetone, MDI, Nylon, Lithium
Companies Mentioned:
Dow, Celanese, LyondellBasell, Olin, Westlake, Indorama, Borealis, CP Chemical, AkzoNobel, Axalta, Brenntag, Clariant, Coromandel, Croda, DSM, Ecolab, ExxonMobil, SABIC, Shin-Etsu, Honeywell, Navin Fluorine, JSW Paints, Reliance, Neste, Inter Pipeline, Pembina, Brookfield, Philips Carbon Black, PPG, Repsol, Sensient, S-Oil, Yansab, RPM, Sherwin-Williams, Lithium Americas, TotalEnergies, OxyChem, Formosa Plastics, Shintech, ASK Chemicals, BASF, Chemours, Entegris, Enterprise Products, Givaudan, ICL, Jervois, OMV Group, SI Group, Stepan, Indorama Ventures, Tokuyama, Sinopec, Avery Dennison, Lotte Chemical, Air Products, Iberdrola, SK Chem, Sonoco, Recticel, Gevo, Aemetis, Airbus, FedEx, UPS, Amazon, TPG, Methanex, Kuraray, Natgasoline, Kraton, Air Liquide, Arkema, Ashland, OMV, Element Solutions, Haldor Topsoe, KBR, Larsen & Toubro, LG Chem, Sekisui Chemical, Shell, Solvay, Vopak, Pemex, Linde, Petrochina, J.B. Hunt, C.H. Robinson, Huntsman, Covestro, AdvanSix, Avient, Chandra Asri, Chevron, Elementis, Ingevity, International Paper, Kurita Water, Nouryon, Orbia, Pilbara Minerals, Siam Cement, Sibur, Tronox, Umicore, Caterpillar, Volkswagen

C-MACC Sunday Thematic & Weekly Recap 77

The New Wall: European Border Tax Could Disrupt US Exports

  • The European border tax could drive significant behavior shifts in the US – we discuss this issue and US reliance on Europe as an export market.
  • While the border tax does not apply to chemicals initially, competitor and customer pressure could impact the sector and US NGL (as well as LNG) shipments.
  •  US sellers into Europe will need to assess whether it is cheaper to pay the tax or look for alternatives outside of Europe that meet the definitions.  
  • We also discuss the wave of capital spending and M&A initiatives which smell very “peak market” to us.  We are having Déjà vu again!
  • 2Q21 sector reports appear to be setting a record for record quarterly results. Optimistic, stronger-for-longer corporate outlooks are becoming the norm.

Last week we discussed 28 Chemicals and related products and 107 Companies.

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