Daily Chemical Reaction
Electric Feel – Clean Energy Minerals Lost Charge In July, More Likely To Recharge In 2H Than Fizzle Out
- 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.
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