From London to Nitta Yuma – C-MACC Reports Show Growing Cost Inflation Concerns, Margin Pressure

Daily Chemical Reaction

From London to Nitta Yuma – C-MACC Reports Show Growing Cost Inflation Concerns, Margin Pressure

Key Points:

• Higher production costs, ranging from petrochemicals to crops, favor higher prices and lower margins in many product chains. The C-MACC team shares its market views from the road.  
• NW European natural gas values hit a record high this week, and an expected delay in the Freeport LNG restart halted US prices near multi-year highs. Energy market volatility persists.
• We discuss the global ammonia market, as it could stay stronger for longer following near-term benefits from European production cuts and notably higher Ex-US energy/production costs.  
• We highlight the EIA estimated construction cost differences among power generation sources, ranging from solar to hydro, and a likely continued surge in clean-energy capital investment.
• We discuss result postings and outlooks from Toll Brothers, Advanced Auto Parts, and multiple retailers, along with macro observations supporting our cautious US end-market demand view.

See PDF below for all charts, tables and diagrams