Daily Chemical Reactions

Rockin’ The Casbah – US PPI Outpaces CPI In June, Demand Destruction Risks Surging In Early 2H22
July 14, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Dow, LyondellBasell, Nutrien, CF Industries, Westlake, Huntsman, Hexion, Covestro, Shell, Borealis, OMV, Nova Chemicals, Methanex, Umicore, Vitol, Delfin LNG, Air Liquide, Neste, Koch, Tellurian, Tianjin Bohai, Toyo Ink, Lummus Technology, Hexicon, Ericsson, The Andersons, General Motors, Hyundai, Fisker, Tesla, Volkswagen, Kraft Heinz, Delta Airlines, TSMC, Amazon, REC Group, WEG, Redwood Group, Gazprom

Daily Chemical Reaction

Rockin’ The Casbah – US PPI Outpaces CPI In June, Demand Destruction Risks Surging In Early 2H22

Key Points:

  • Producer prices continue to outpace consumer prices, implying more end-product price hikes or margin contraction lie ahead of many chemical product chains in 3Q. We view demand destruction as the greatest 2H22 chemical sector profitability risk.
  • We highlight pertinent energy, chemical, and other corporate updates (e.g., Shell, Huntsman, Borealis, Umicore, Covestro, Vitol, Air Liquide, Neste, Koch, & others).
  • We discuss ESG items that range from Hexion announcing the use of renewable methanol to produce sustainable products to Lummus Technology introducing the first net zero ethane cracker. See our latest 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

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