Sunday Thematic & Weekly Recap

3Q21 Sector Results Will Be A Treat – Forward Views Tricky
October 17, 2021
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polystyrene, PET, Chlorine, Caustic Soda, Ethylene, Methanol, Lithium, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Propylene, MEG, Butadiene, Caprolactone, Tromethamine, Carbon, Coal, Aluminum, Biofuels, Ammonia
Companies Mentioned:
Dow, LyondellBasell, CP Chemical, ExxonMobil, Westlake, OxyChem, Shintech, Formosa, Olin, INEOS, KEM ONE, Gevo, Arkema, Baerlocher, BASF, Sanyo, Chemanol, Givaudan, Advanced Petrochemical, LG Chem, Lonza, Lukoil, Nippon Paint, Repsol, Unipetrol, Chevron, Shell, TotalEnergies, Epsilyte, Covestro, Celanese, Ford, Braskem, Eastman, Enterprise Products, Flint Hills, PPG, Axalta, Petronas Chemicals, Avantor, Reliance, Williams, EMS Group, Elkem, Centrica, Apache, Exelon, Etihad, Rio Tinto, Delta Air Lines, Tesla, ConocoPhillips, Chemours, Lanxess, bp, Origin Materials, Sharq, OCI, Air Products, Plug Power, Trinseo, Sinopec, Evonik, Hanwha, Haldor Topsoe, Monolith, SK, TC Energy, TechnipFMC, GM, LG Electronics, Apple, TSMC, Tata Steel, BMW, Ikea, BHP, Posco, Cove Point LNG, Blackrock, Essar Oil, Octopus Energy, TPC Group, Sherwin-Williams, Chandra Asri, Alcoa, Angus Chemical, ICL, Ingevity, Phillips 66, Nikola, Navigator CO2, Ascend, John Deere, Oqema, Plaskolite, Goldman Sachs, EDP, J.B. Hunt, Aker Carbon Capture, Nova Chemicals, Mubadala

C-MACC Sunday Thematic & Weekly Recap 88

3Q21 Sector Results Will Be A Treat – Forward Views Tricky

  • We expect the US Chemical industry, on average, to post strong 3Q21 results. Market changes in October leave 4Q and 2022 unclear – we discuss global chemical profit trends and possible corporate benefits of “kitchen sinking” forward views.
  • US ethylene margins are in freefall, in part because of higher feedstock costs, but also because of more supply. Costs are rising while many prices are falling.
  • Higher energy costs globally and higher US NGL costs push producers in some segments to fight for price hikes. The risk for US producers is that weaker olefin prices and still lower, though rising export values, drive polyolefin prices down.
  • Meanwhile, supply chains for durables remain tight, so demand remains strong, but inflation fears are escalating and this could end the party for all in 2022.

Last week we discussed 25 Chemicals and related products and 102 Companies.

See PDF below for all charts, tables and diagrams

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