Daily Chemical Reactions | Sunday Thematic & Weekly Recap

Olin – Underinvesting To Over-Earn Is Act I; We Question Act II
October 24, 2021
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polystyrene, PET, Chlor-Alkali, Ethylene, Propylene, Methanol, Lithium, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Maleic Anhydride, Methacrylic Acid, Chlorine, Caustic Soda, Benzene, Carbon, Methane, LNG, Ammonia, Ethanol
Companies Mentioned:
Dow, LyondellBasell, Braskem, BASF, Flint Hills, Enterprise Products, PPG, Huntsman, Sherwin-Williams, Methanex, Westlake, Olin, ExxonMobil, CP Chemical, Arkema, Bachem, Baerlocher, Clariant, Evonik, Gurit, Hexcel, Hexion, Haldor Topsoe, Lanxess, Lone Star, McDermott, Repsol, Yansab, Sensient, Solvay, Teijin, Petronas Chemicals, Shell, Halliburton, Stellantis, Kraton, OQ Chemicals, Air Products, AkzoNobel, Axalta, Sabic, Chandra Asri, Johnson Matthey, Mitsubishi Chemical, INEOS, Hyundai Glovus, Neste, Ravago, Rio Tinto, Ford, Qatargas, Novatek, WD-40, Winnebago, Plug Power, Fortescue, Tesla, Procter & Gamble, First Solar, SolarEdge, ASML, Alpek, Covestro, Stepan, Formosa Plastics, Shintech, Asian Paints, Valero, M. Holland, Sumitomo, Technip Energies, Ryanair, Symrise, Baker Hughes, PTTGC, Unilever, Yara, Tata Chemicals, Gevo, Aemetis, Formosa, OxyChem, Air Liquide, Celanese, Lummus, Gail, DCM Shriram, Posco Chemical, Sika, Ube Industries, bp, LG Chem, Honeywell, PKN Orlen, Borealis, Petrobras, Atotech, Whirlpool, Mattel, American Express, Linde, Danimer Scientific, Origin Materials, Macquarie, Mitsubishi Corporation, Denbury

C-MACC Sunday Thematic & Weekly Recap 89

Olin – Underinvesting To Over-Earn Is Act I; We Question Act II

  • The turnaround at Olin has been notable and is a function both of better markets and of a radically different corporate strategy – which is currently working.
  • The commodity chemical industry has a history of repeating a strategy of growing capacity and hoping for positive outcomes – the Olin strategy is different.
  • Similar to the “early harvest” strategy at LyondellBasell and the one taken in acetyls at Celanese, Olin appears set to make some good money and create value.
  • LyondellBasell has not had a great “second act,” and Celanese’s is yet to play out. Olin’s Act I strategy has a limited duration – we discuss drivers of Act II
  • Otherwise, we discuss the cost concerns reflected in most earnings reports to date, and we look at the focus on carbon as it is now impacting chemicals. 

Last week we discussed 25 Chemicals and related products and 106 Companies.

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