Sunday Thematic & Weekly Recap

Could Our Ethylene Megacycle Thesis Fail Due To ESG Pressure?
June 26, 2022
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polyurethane, Polycarbonate, Polystyrene, PET, Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Renewable Power, Recycled Polymers, Plastic Waste, Ammonia, Methanol, Oil, Ethanol, Gasoline, Biofuels, Renewable Fuel, Coal, Fertilizer, Crops, Oxygen, Water, Lithium, Nickel, Cobalt, Aluminum, Copper, EVs, Nuclear, Solar, Wind, Electrolyzer, Fuel Cell, Ethylene, Renewable Polymers, SAF, Renewable Diesel, RNG
Companies Mentioned:
CP Chemical, Westlake, Dow, LyondellBasell, ExxonMobil, PPG, Axalta, Enterprise Products, Phillips 66, Trinseo, Olin,, Covestro, Huntsman, AkzoNobel, Navigator Holdings, INEOS, Borealis, Formosa Plastics, Braskem, Chesapeake Energy, Freeport LNG, Solvay, Sinopec, Matador, TotalEnergies, Qatar Energy, BD, Mitsubishi Chemicals, Elite, LG Chem, Andani, Bosch, Chevron, Tesla, Emerson, Helios Technologies, Microsoft, Sherwin-Williams, Volkswagen, Piedmont Airlines, Nova Chemicals, Mitsui, Li-Cycle, Oxy, Shintech, Orbia, Advario, BP, Repsol, ShipBob, Univar, Balchem, Clariant, Lynas, CorPower Ocean, Cal Solar Inc, GM, Romco, Toyota, Cheniere, Ikea, Stellantis, Sulzer, IOC, Navigator CO2 Ventures, POET, Summit Agricultural Group, Nutrien, Air Products, Linde, WEC Energy, DWS, Epsilyte, OMV, OCI, Wood, SABIC, Energy Transfer, BHP, Petrobras, Wizz Air, Azelis, Nucor, Tiajin Bohai, Toray, Advent Technologies, Aramco, BlackRock, C-Zero, Ford, Frontier, SoCalGas, LEGO, Maersk, Boeing, Celanese, Shell, Kumho Petrochemical, Obsidian Energy, Glencore, Tianjin Bohai, Orion, Syngenta, UniteChem, Codelco, Avfuel, Sony, Unilever, Amazon, Tesco, Walmart, Kroger, Rivian, Genomatica, Honda, Sibur, Amogy, Conoco, Valero, Advansix, BASF, ChemOne, Elkem, Invista, Lotte Chemical, PyroTex, Petronas Chemicals, Umicore, Eniva, Equinor, Yamaha Motor, Arizona Lithium, Double Eagle, Nexeo Plastics, Zangge Mining, Eni, Kaofu Chemical, Kemira, MAN Energy Solutions, Shin-Etsu, Bloom Energy, Thyssenkrupp, Plug Power, Ballard, PTTGC, Plug Power, H.B. Fuller, Eastman, Air Liquide, Pilbara, Sinopec Shanghai Petrochemical, Eagle LNG, Sempra Energy, Lenzing, Imperial Supplies, Siemens Energy, Aptar, BMW, Evonik, Indorama Ventures, Quantafuel, Apogee Enterprises, Bayer, Target, Xebec Adsorption, Columbus McKinnon

C-MACC Sunday Thematic & Weekly Recap 123

Could Our Ethylene Megacycle Thesis Fail Due To ESG Pressure?

  • Return risk, limiting chemical company growth investment, is the core of our megacycle thesis, but what if other sectors, such as energy, see it as less risky.
  • It is all relative, and risk-adjusted returns from the chemicals sector may be more attractive than their existing businesses, while incumbents see it differently.
  • Current economics support oil majors and refiners sticking with existing businesses, but medium-to-long term uncertainties are high for many reasons.
  • Negative economic signs continue to mount, suggesting a challenging 2H22 for chemicals, especially in Europe, where profit pressures are highest for many.
  • Otherwise, we look at metal pricing/demand, Europe climate change pressure, lower freight rates (higher volumes?), and short/longer-term LNG challenges.

Last week we discussed 46 Chemicals and related products and 165 Companies.

See PDF below for all charts, tables and diagrams

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