Daily Chemical Reactions

The Walls Are Way Too Thin – 2H22 Chemical Sector Profit Faces A Mix of Structure & Foundation Issues
June 22, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
LyondellBasell, INEOS, Dow, ExxonMobil, Westlake, AkzoNobel, Freeport LNG, Olin, Occidental, Chevron, Conoco, Valero, Advansix, Azelis, BASF, ChemOne, Clariant, Elkem, Invista, Lotte Chemical, PyroTex, Petronas Chemicals, Sinopec, Umicore, Eniva, Equinor, LG Chem, Toyota, Yamaha Motor, Arizona Lithium, Double Eagle, Nexeo Plastics, Zangge Mining, Eni, Kaofu Chemical, Kemira, MAN Energy Solutions, Mitsubishi, Shin-Etsu

Daily Chemical Reaction

The Walls Are Way Too Thin – 2H22 Chemical Sector Profit Faces A Mix of Structure & Foundation Issues

Key Points:

  • US chemical production costs surged in 2Q22 relative to Ex-US levels. US polymer price weakness, amid more supply, and an unlikely quick global cost curve steepening, pose 2H22 profit headwinds beyond our demand concerns.
  • We highlight pertinent energy, chemical, and other corporate updates (e.g., Occidental, BASF, LyondellBasell, ChemOne, AdvanSix, INEOS, & others).
  • We discuss ESG items that range from Umicore investor day commentary to critical mineral price inflation impacting clean energy project development costs. We also flag our ESG weekly thematic research in LINK.
  • We discuss numerous other pertinent chemical sector items in this report.

See PDF below for all charts, tables and diagrams

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