Pause – Commodity Equities May Take A Breather Here, Despite Compelling Long Term Fundamentals

Daily Chemical Reaction

Pause – Commodity Equities May Take A Breather Here, Despite Compelling Long Term Fundamentals

Key Points:

• US commodity chemicals outperformed YTD, but we think a price/margin pullback among these producers is likely in 2H22. We argue that US specialty sub-sector equities could outperform in this setting amid low expectations.
• We highlight pertinent energy, chemical, and other corporate updates (e.g., ExxonMobil, LyondellBasell, BASF, Celanese, Olin, Eastman, PBF & others).
• We discuss relevant ESG items ranging from Ecovyst and Neste renewable product market views for 2Q22 to Europe carbon market developments. We also highlight our latest ESG sector dedicated weekly research in LINK.
• We discuss numerous other pertinent chemical sector items in this report.

See PDF below for all charts, tables and diagrams