Daily Chemical Reaction
Playing The Long Game – Energy Sector Capex Drives To Chemicals, Europe Tries To Get Out Of The Bunker
- We discuss long-term strategic sector announcements supporting our thematic views of energy companies boosting chemical investments and falling European sector competitiveness.
- We note the continued strength in NW Europe and Asia natural gas prices relative to North American levels and increasing global energy sector investment in chemical product chains.
- We discuss the movement in NW Europe spot ethylene relative to US ethylene levels, as the price difference is near a five-year low, and highlight US PVC values reflect discounts to Asia.
- We highlight a few examples of inflation reduction act (IRA) incentives spurring clean-energy project developments that were likely on the fence before its passage and other related news.
- China freight rates to the US East and West Coasts fell again last week, reflecting a 14th consecutive weekly decline, and property markets in the US and China both face headwinds.
See PDF below for all charts, tables and diagrams