Sunday Thematic & Weekly Recap

Pumping Up The Pumpkins – Is Farm Inflation A Horror Story?
October 31, 2021
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polystyrene, PET, Chlor-Alkali, Ethylene, Propylene, Benzene, Methanol, Lithium, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Chlorine, Coal, Nuclear, Methane, LNG, Ammonia, Urea, Steel, Sustainable Aviation Fuel
Companies Mentioned:
Dow, LyondellBasell, Nova Chemicals, CP Chemical, Westlake, Olin, Shintech, OxyChem, Formosa Plastics, Celanese, Axalta, Clariant, Ecolab, Idemitsu Kosan, SRF, Kemira, LG Chem, Reliance, Sekisui, Shikoku Chemicals, Synalloy, Sherwin-Williams, ExxonMobil, Pilbara Minerals, Solvay, Shell, ENI, Valero, Tesla, Aramco, Huntsman, Gevo, ADM, Aemetis, Origin Materials, Coca-Cola, Chevron, BASF, Covestro, Petrobras, Equinor, Repsol, BorsodChem, Entegris, Cabot Corporation, Epsilyte, Siam Cement, Iberchem, Croda, Meghmani Finechem, Mitsui Chemicals, SK Chemicals, Pregis, Linde Group, Wacker Chemie, Axens, Berry Global, Avery Dennison, Trex, Toray, Invesco, Vestas, Bloomsberry, Linde, Stellantis, Neste, Methanex, Southern Chemical, Mitsui & Co. Ltd., bp, TotalEnergies, SABIC, Avient, Element Solutions, Elkem, Ingevity, Kraton, S-Oil, Shin-Etsu, OCI, Sumitomo, Tata Chemicals, Tokuyama, Bunge, Denbury, Volkswagen, Samsung, Capital Group, Air Products, ABP, Honeywell, Ryanair, Alpek, Fidelity International, AdvanSix, OMV, Eastman Chemical, Versalis, Glencore, Balaji Amines, Chemed, Chemours, EMS, Evonik, Elementis, Cosmos Films, PetroChina, Sibur, Toyota, Indorama Ventures, Graphic Packaging, Nippon Shokubai, Sonoco, Newell Brands

C-MACC Sunday Thematic & Weekly Recap 90

Pumping Up The Pumpkins – Is Farm Inflation A Horror Story?

  • Crop price strength in 2021 – due to demand and logistics – is well documented, but attention is increasingly shifting to farm costs, notably fertilizer.
  • Urea and Ammonia prices have jumped, in part with natural gas, by enough to shift farmer planting intentions for 2022, possibly limiting US corn production.
  • Higher crop prices mean higher input costs for those making renewable fuels from corn, soy, canola, etc., and could potentially delay projects not yet approved.
  • As COP26 will likely emphasize, all regions lack sufficient concrete steps to address fossil fuel-based emissions – so renewable projects cannot afford delays. 
  • Otherwise, we focus on relative ethylene economics, the activist pressure on Shell, and the added woe for polymer producers (to CO2) – inadequate recycling.

Last week we discussed 27 Chemicals and related products and 114 Companies.

See PDF below for all charts, tables and diagrams

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