Daily Chemical Reaction
Country State Of Mind – European Cost Woes Favor US Producers In Many Sectors
Key Points:
- Agriculture market indicators remain favorable while the cost curve for ammonia has steepened in favor of US producers, such as CF Industries, Nutrien, and LSB.
- EU government-led actions to limit natural gas use are being supported by many companies, such as BASF, but high costs and supply predictability remain concerns.
- Sherwin-Williams cuts its full-year profit forecast amid weaker coatings demand in some markets and higher costs, supporting our cautious view of this market.
- We discuss NextEra ambitions to convert a sizable portion of its natural gas power generation fleet to use green hydrogen, which we do not view as feasible.
- End-market demand updates are mixed by product and region, but most reflect headwinds. 3M flags weakening consumer electronics demand in its FY outlook.
See PDF below for all charts, tables and diagrams