Daily Chemical Reactions

From London to Nitta Yuma – C-MACC Reports Show Growing Cost Inflation Concerns, Margin Pressure
August 24, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Ammonia
Companies Mentioned:
CF Industries, Nutrien, LSB Industries, Yara, Wanhua, Grupa Azoty, Atome, IMCD, S-Oil, DSM, Arxada, Siam Cement Group, PPG, Lummus Technology, Fujian Eversun, BASF, Worley, Brenntag, Eni, TotalEnergies, Denbury, Murphy Oil, ConocoPhillips, GreenGroup, Fluor, Capstone Green Energy, Birla Carbon, American Vanguard, Primoris Services, INPEX, Woodside, Black & Veatch, CATL, Shell, Toll Brothers, Advanced Auto Parts

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

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