Daily Chemical Reaction
Any Way You Want It – Chemical Supply Concerns Deescalate, Global Demand Concerns Accelerate
Key Points:
- Demand concerns are overtaking the expected benefits of input cost relief for non-integrated intermediate and specialty producers in 2H22 to keep optimism in check.
- NW Europe natural gas prices rebounded since mid-June and now reflect levels near multi-year highs, elevating many regional chemical sector profit concerns for 2H22.
- Huntsman announces the divestment of its textile effects business, which we view as a plus for simplifying its story and enhancing its evolution to specialties.
- We view materials availability, supply chain disruptions, and labor as more significant concerns than capital constraints for many wind and solar projects.
- US real hourly wages fell YoY in 2Q22, which we view as a negative leading indicator for consumer spending. We also flag the drop in US light vehicle sales.
See PDF below for all charts, tables and diagrams