Daily Chemical Reactions

Any Way You Want It – Chemical Supply Concerns Deescalate, Global Demand Concerns Accelerate
August 9, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Huntsman, BASF, Dow, Covestro, Trinseo, Enterprise Products, Energy Transfer, Ineos, Wood, ExxonMobil, Southwestern Energy, Cabot, Evonik, Fertiglobe, OCI NV, Firmenich, Gail, Borealis, Ingrevia, Maire Tecnimont, Mosaic, American Vanguard, Occidental, Nucor, Nippon Soda, Sabic, Sappi, Oz Mineral, AdvanSix, Yasho Industries, GEVO, Broadwind, Honeywell, Braskem, Sasol, Veolia, KBR, McDermott, Tyson Foods, IHG, Micron, Asahi Kasei, Altana, Pembina

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

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