Daily Chemical Reactions

Playing The Long Game – Energy Sector Capex Drives To Chemicals, Europe Tries To Get Out Of The Bunker
August 30, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Reliance, Sasol, Advario, PKN Orlen, Nutrien, CF Industries, LSB Industries, Shell, Enterprise Partners, Energy Transfer, Albemarle, Sinopec, Oxy, Chevron, Exxon, Gazprom, Engie, Jera, Magellan, TotalEnergies, BP, Novatek, Basf, Honeywell, INEOS, Anellotech, Kraton, Lanxess, LG Chem, Mitsui Chemicals, Equinor, Syngenta, FREYR Battery, SolarEdge, REX American, Best Buy, Honda

Daily Chemical Reaction

Playing The Long Game – Energy Sector Capex Drives To Chemicals, Europe Tries To Get Out Of The Bunker

Key Points:

  • 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

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