Daily Chemical Reaction
Free Fallin’ – 1H Chemical Profit Fell Due To Higher Costs, Holes Develop In Some 2H Price Parachutes
Key Points:
- Spot ethylene cracker margins in the US and Asia both turned negative for parts of 2Q22, implying a reliance on derivative spreads to generate profit for integrated producers that faces considerable risk in 2H22 per our analysis.
- We highlight pertinent energy, chemical, and other corporate updates (e.g., Huntsman, Borealis, Posco Chemical, LG Chem, LyondellBasell, & others).
- We discuss ESG and clean-energy developments that range from thoughts on a potential tax on lithium in California to a general view of offshore wind developments. We also flag our ESG weekly research in LINK.
- We discuss numerous other pertinent chemical sector items in this report.
See PDF below for all charts, tables and diagrams