Sunday Thematic & Weekly Recap

The Market is Down, But Negative Revisions May Stall A Recovery
July 3, 2022
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polyurethane, Polycarbonate, Polystyrene, PET, Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Copper, Nickel, Lithium, EVs, Batteries, Corn, Soy, Canola, LNG, Gasoline, Biofuels, Biodegradable Polymers, DAC, Ethanol, Solar, Wind
Companies Mentioned:
Energy Transfer, Enterprise Products, CP Chemical, Westlake, Dow, LyondellBasell, Celanese, Occidental, Nova Chemicals, Braskem, Albemarle,, BASF, Linde, ExxonMobil, Chevron, Eastman, 1PointFive, Cheniere Energy, Freeport LNG, ProFrac, AkzoNobel, Elkem, Evonik, Henkel, Iluka Resources, INEOS, Lotte Chemical, Piedmont Lithium, Sayona Mining, Sinopec, Sipchem, Tata Chemicals, Borealis, Carlsberg, Equinor, Volkswagen, Nike, Italmatch, Imperial, Avangard Innovative, Entigris, Methanex, Formosa Plastics, Repsol, Pilbara Minerals, Southern Chemical Corporation, Natgasoline, Mitsui, Bed Bath and Beyond, General Mills, McCormick, JOGMEC, Schlumberger, Williams, Cameron LNG, Atotech, Liontown Resources, Ford, Sika, Showa Denko, Air Products, AeroViroment, Blue Clover, Neste, Siemens Energy, TotalEnergies, H&M, Paychex, Compass Minerals, Crossbridge Energy, DWS, FREYR Battery, Tesla, BMW, Britishvolt, Toyota, Cirba Solutions, Umicore, Freeport McMoran, Southern Copper, Vale, Glencore, BHP, PTTGC, Manulife, Air Liquide, Huntsman, Posco Chemical, LG Chem, DuPont, Venator Materials, Endesa, Gazprom, BP, OMV, PG&E, PJM, Shell, Whitecap Resources, SK Capital, FMC, Kurita, Shenghong Petrochemical, Schneider National Carriers, INPEX, Mitsubishi, Petronas, Nutrien, CF Industries, Corteva, Sherwin-Williams, PPG, Berry Plastics, Kinder Morgan, Marubeni, Polynt, Koch, Azelis, IFF, Chemdirect, SKW Piesteritz, Lonza, OCI, Croda, Yara, Univar, The Azek Company, Trinseo, Watts Water Tech, Apple, Micron, General Motors, Nio, Symrise

C-MACC Sunday Thematic & Weekly Recap 124

The Market is Down, But Negative Revisions May Stall A Recovery

  • After the worst 6 months for the US stock market since 1970, chemical sector equity values face headwinds in 2H22 as profit expectations trend lower.
  • Most companies were too optimistic with expectations set in April/May, when tight conditions continued to enable pricing power – this setting now shows cracks. 
  • The Ag and Industrial Gas sectors look relatively less vulnerable to peers, but a negative sentiment shift will hurt all – how long it lasts likely depends on inflation.
  • We expect metals and crop prices to hold up relatively well, as shortages are real and demand should grow – chemicals/plastics tie more to discretionary spending. 
  • Otherwise, we study the squeeze and challenges with US refining capacity, show further macro indicators that confirm our concerns, and discuss EVs/batteries. 

Last week we discussed 29 Chemicals and related products and 134 Companies.

See PDF below for all charts, tables and diagrams

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