C-MACC Sunday Thematic & Weekly Recap 111
Ending Globalization (& Its Unwinding) Will Be Costly
- Uncertainty has increased meaningfully for most corporate near and perhaps medium-term strategic plans, with stubbornly high input costs being a critical issue.
- Absent an improbable pro-West solution in Russia – energy independence and national security agendas will increase spending and commodity demand.
- Consequently, we have to live with higher prices before adding the costs of climate change/energy transition – a loud and common theme at WPC last week.
- Chemical sector profit expectations continue to rise, especially for the US, and the oil price rise is replicating the margin umbrella seen in 2011-2014.
- Otherwise, we look at inventory and its impact on apparent demand, refining margins, some ESG issues, including carbon pricing, methanol, and recession.
Last week we discussed 27 Chemicals and related products and 141 Companies.
See PDF below for all charts, tables, and diagrams