Sunday Thematic & Weekly Recap

China: Does Economic Leverage Outweigh Heightened Risk?
November 28, 2021
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polyurethane, Polystyrene, Polycarbonate, PET, Recycled Resin, Propylene, Ethylene, Benzene, Lithium, Carbon Black, Carbon Dioxide, Hydrogen, Methanol, Natural Gas/NGLs, Crude/Naphtha, LNG, Ammonia
Companies Mentioned:
LyondellBasell, CP Chemical, Dow, ExxonMobil, Nova Chemicals, Enterprise Products, Aramco, Reliance, Sinopec, BASF, Clariant, DuPont, Ecolab, Vinnolit, Westlake, Givaudan, Shell, Berlin Packaging, Targa, NextDecade, Vulcan Energy, Petronas Chemicals, TechnipFMC, Ineos, Mitsui, OCI, Greenland Resources, Celanese, Mitsubishi Chemical, Drax, Air Liquide, Tesla, Best Buy, Dick’s Sporting Goods, Johnson Matthey, LG Chem, GS Caltex, Samsung, Stolt, DSM, Hexion, Olin, Huntsman, Woodfibre, McDermott, PBF, BorsodChem, Eastman, Kaneka, Lanxess, Unipar, Yasho Industries, Asahi Kasei, IKEA, Petrobras, Toray, BF, Eni, Worley, Standard Lithium, Licella, Gevo, Aemetis, Freeport LNG, Venture Global, Golden Pass, Cheniere, Cameron LNG, Air Products, Talos, Denbury, Baker Hughes, Coca-Cola, Closed Loop Partners, Braskem, Borouge, Oxy Low Carbon, Chevron, JERA, Lukoil, Linde, KazMunayGas, Cumberland Plastics, Pinnacle Polymers, Methanex, Southern Chemical, Greiner, BP, PTT Group, Tessenderlo, Wartsila, Tokyo Gas, Cosan, Natgasoline

C-MACC Sunday Thematic & Weekly Recap 94

China: Does Economic Leverage Outweigh Heightened Risk?

  • Foreign Direct Investment in China hit 2020 annual levels by October ‘21, up 18% YoY. Some of the investment is in Chemicals, despite surpluses and weak margins.
  • While growth in China has slowed, GDP per capita leverage still drives significant local spending gains and chemical company investments target local growth.
  • Current China surpluses result from too many targeting local growth and recent demand growth disappointment, but China will grow into the production.
  • Western companies banking on China demand growth are at risk from a less stable political backdrop and that others will chase the same opportunities.
  • Otherwise, we discuss the evolution of Westlake, carbon pricing, natural gas supply/demand, and why CCS rhetoric is running well ahead of the action.

Last week we discussed 22 Chemicals and related products and 94 Companies.

See PDF below for all charts, tables and diagrams

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