Daily Chemical Reaction
Wake Me Up When September Ends (Though It May Get Worse In 4Q22!) – Chemical Profits Face Narcolepsy
- The Enterprise Products PDH 2 unit on the USGC and a Borealis PDH unit in Belgium were at one point both expected to start up in 2Q23, but this is no longer the case.
- As the LNG supply/demand challenges persist, Asia LNG importers have more degrees of freedom to seek alternatives to drive power supply than those in Europe.
- Despite August’s US propylene contract strength MoM, we reiterate our view that will likely drive US polypropylene (PP) prices further lower from current levels in 2H22.
- We discuss steam cracker electrification efforts after the announced BASF, SABIC, and Linde project, which follows other progress in this area, such as from Dow and Shell.
- We think food price inflation limits the risk of US/China tensions cutting China imports of US crops, and we also flag US Pro Farmer Tour feedback favoring tight crop markets.
See PDF below for all charts, tables and diagrams