Sunday Thematic & Weekly Recap

The West Finesses Sanctions; Rampant Inflation Likely Anyway
February 27, 2022
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polyurethane, Polycarbonate, PET, Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Water, SAF, LNG, Renewable Diesel, Gasoline, RNG, Polystyrene, Urea, Oxygen, Ethylene, Ethanol, Lithium, Wind, Solar, Benzene, Propylene
Companies Mentioned:
Westlake, Olin, OxyChem, Shintech, Formosa Plastics, LyondellBasell, Dow, ExxonMobil, Huntsman, Nova Chemicals, Marathon Oil,, Diamondback Energy, Plains All American, KBR, Messer, MP Materials, Williams, AGC, Asahi Kasei, BCI Minerals, Bostik, Braskem, Chemtrade, Element Solutions, Elkem, Hexion, IFF, India Glycols, Koppers, Kurita, LG Energy, Venator, Solvay, Aramco, Umicore, Stepan, Thyssenkrupp, Southern Petrochemical, Polyplex, Rio Tinto, Sasol, Lowe’s, Home Depot, Maersk, Linde, Albemarle, Cosan, Nacero, Aemetis, Gevo, Microvast Holdings, Infrastructure & Energy Alternatives, TC Energy, Alto Ingredients, LiqTech International, EoS Energy Enterprises, ESS Tech, Fluence, Electric Last Mile Solutions, NextEra, Mullen Automotive, Denbury, Neste, Air Liquide, Archaea Energy, Haldor Topsoe, GPRE, CF Industries, Talos, ArcelorMittal, DuPont, Deere, Veolia, Trinseo, TotalEnergies, Aurubis, Honeywell, Versalis, Novoloop, Borealis, Enel, Plug Power, Ford, Shell, Idemitsu, Vertex Energy, The Andersons, Santos, Orbia, Arkema, Chart Industries, Ingevity, Petronas Chemicals, Chevron, Repsol, Evonik, Air Water, Mitsui, Borouge, Adnoc, Lotte Chemical, K+S, LSB Industries, Rayonier Adv. Materials, Flowserve, BASF, Carbios, Covestro, CVR, Quva, Univation, Lanxess, Standard Lithium, HollyFrontier, Styrolution, SK Energy, Stellantis, PPG, Sherwin-Williams, AkzoNobel, Cheniere, Chesapeake, Coterra, Freeport LNG, Origin Materials, Ecovyst, Tennant, Adeka, Mosaic, Sumitomo Chemical, Sanyo Chemical, PTTGC, Methanex, Univar, ABB, Ballard Power, Indorama Ventures, Grupa Azoty, Hyperlight Energy, Drax, Galp

C-MACC Sunday Thematic & Weekly Recap 107

The West Finesses Sanctions; Rampant Inflation Likely Anyway

  • In 4Q ‘21 we predicted a positive sentiment move to inflation/shortage-levered commodity chemical equities – YTD performance has exceeded our expectations.
  • With underlying demand growth already very strong, the Russia/Ukraine conflict will likely drive enough panic buying and keep commodity prices elevated.
  • All eyes are on energy, but most supply chains remain stretched, and spare capacity is limited worldwide – all reporting companies confirm strong order books.
  • We discuss actions at Westlake to boost its more stable return generating building products segment, concluding that this compelling story has room to grow.
  • Otherwise, we focus on energy markets, concluding that supply restrictions are a greater risk in Europe than energy price inflation alone.

Last week we discussed 29 Chemicals and related products and 141 Companies.

See PDF below for all charts, tables and diagrams

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