Daily Chemical Reactions

Tight Fittin’ Jeans– Price Hikes Spur 2H21 Profit Surges, Supply Response Poses Major 2022 Risk
November 9, 2021
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Propylene, Ethylene, Lithium, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Aramco, Phillips 66, Shell, Occidental, Freeport LNG, AOC, BASF, Clariant, Covestro, Huntsman, Dow, Daicel, Daiken, ExxonMobil, CP Chemical, Nova Chemicals, LyondellBasell, Trinseo, SABIC, Solvay, Livent, Nippon Shokubai, Nippon Soda, Indorama Ventures, Orion Eng. Carbons, Kumho Petrochemical, Sumitomo Seika, Teijin, Toyobo, Tosoh, Wacker, Henkel, Enterprise Products

Daily Chemical Reaction

Tight Fittin’ Jeans– Price Hikes Spur 2H21 Profit Surges, Supply Response Poses Major 2022 Risk

Key Points:

  • Global Chemical Sector 3Q21 reports display significant price-led sales growth, which in many cases bolstered profitability. As volume returns, we discuss the case for price declines into 2022 and lower per-unit profitability.
  • Though we find notices of new project developments to start the week, we think inadequate growth Capex is targeting many product chains. See our report titled Waiting For The Big One – Is A Chemical Mega-Cycle Ahead?
  • We flag pertinent chemical sector corporate updates (e.g., Covestro, Tosoh, Daicel, Shell, Trinseo, BASF, Wacker, Henkel, Solvay, Livent, & others).
  • We note relevant ESG items worth notice, ranging from updates across several chemical sub-sectors to a view on global hydrogen production centers.
  • We discuss numerous other pertinent chemical sector items in this report.

See PDF below for all charts, tables and diagrams

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