Sunday Thematic & Weekly Recap

US Commodity Chemical Margins Find Elements Of Support
January 23, 2022
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polyurethane, Polycarbonate, PET, Ethylene, Propylene, Melamine, Lithium, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Benzene, Biofuels, Ethanol, Butanol, Gasoline, Diesel, Jet Fuel, Corn, LNG, Polyester, Chlor-Alkali, Methanol, Oleochemicals,
Companies Mentioned:
Nova Chemicals, Westlake, Enterprise Products, Dow, Sherwin-Williams, Olin, LyondellBasell, Ashland, Axalta, CP Chemical, ExxonMobil, Braskem, Formosa Plastics, Petrobras, Lucid Energy, Covestro, Eastman, EQT, Seneca, Arkema, BASF, Repsol, Rio Tinto, Lummus, Eneos, Marubeni, Lukoil, PetroChina, Novonor, Petronas, BP, Albemarle, Lonza, Trafigura, Solenis, Fortescue, McDermott, Reliance Industries, Gevo, Aemetis, Archaea Energy, Clean Energy Fuels, Borealis, Montauk Renewables, Renewable Energy Group, Westport Fuel Systems, Fulcrum Bioenergy, OMV, Delta Air Lines, Golden Pass, Chevron, Shell, Asian Paints, New Hope Energy, H.B. Fuller, Danimer Scientific, Evonik, Air Liquide, Air Products, Linde, Solvay, Sabic, S-OIL, Phillips 66, Kinder Morgan, TotalEnergies, Serica Energy, WL Plastics, GM, Pepsi, Procter & Gamble, Enbridge, Loop Industries, DHL, PPG, Union Pacific, Ecolab, Pemex, Baker Hughes, Schlumberger, Siemens, GAIL, DuPont, DuluxGroup, IFF, Yansab, Khaitan C&F, Sunlit Chemical, UPL, Blackstone, Invesco, Asahi Kasei, LG Chem, Unilever, Toyota

C-MACC Sunday Thematic & Weekly Recap 102

US Commodity Chemical Margins Find Elements Of Support

  • The US commodity chemical cost advantage remains significant relative to Asia, and several factors favor Ex-US polymer price support – a plus for US producers.
  • While 2022 is unlikely to be as profitable for US chemicals as 2021, commodity producers should do well, while others will see profit lag with inflation pressure.
  • The situation looks much less pleasant for producers in Asia, with overcapacity, high raw materials costs, and very high freight cost barriers to export.
  • Otherwise, we flag several pertinent energy transition & ESG issues, including our new biofuels index launch and Eastman’s ambitious recycling plans for France.
  • We also discuss ExxonMobil’s net-zero proposal (could it give ExxonMobil an edge?), and a week of varied macro news, including very negative rail freight data.  

Last week we discussed 29 Chemicals and related products and 95 Companies.

See PDF below for all charts, tables and diagrams

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