Daily Chemical Reaction
Electric Feel – Clean Energy Minerals Lost Charge In July, More Likely To Recharge In 2H Than Fizzle Out
Key Points:
- Our clean energy mineral price index declined for the fourth consecutive month in July, after a period of considerable strength. We do not foresee a 2H22 collapse.
- US refining margins have declined from YTD highs, but domestic operating rates have moderated, and low inventories favor price (and margin) support near term.
- Low Rhine river levels could cut production of some chemicals in Europe, such as at BASF, which we view as a likely plus for North American export prices.
- Clean energy mineral demand growth will likely be amplified by emerging US climate policy, which will likely trigger more production growth announcements.
- Global food prices declined in July, following crop prices lower, but as discussed in recent research, prices remain higher YoY, and most crop markets remain tight.
See PDF below for all charts, tables and diagrams