Daily Chemical Reactions

Wake Me Up When September Ends (Though It May Get Worse In 4Q22!) – Chemical Profits Face Narcolepsy
September 1, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Enterprise Products, Borealis, LyondellBasell, BASF, SABIC, LINDE, Dow, Shell, Braskem, Pinnacle Polymers, Anellotechl, Versalis, BP, Gazprom, ExxonMobil, Mitsui, Bharat Petroleum, Henkel, PT Freeport, QatarEnergy, Sumitomo Chemical, Berry Plastics, Nobian, LG Energy, Lenzing, OQ Chemicals, Technip Energies, NextEra, DSM, Inpex, Repsol, Unilever, Worley, Mitsubishi, Lukoil

Daily Chemical Reaction

Wake Me Up When September Ends (Though It May Get Worse In 4Q22!) – Chemical Profits Face Narcolepsy

Key Points:

  • 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

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