The Weekly Catalyst
Global Chemical Update – September in the Rain
Key Points:
- Global polymer prices declined again WoW, but global feedstock prices, on avg., fell more, halting further profit declines for integrated producers that, in some cases, are below 2018/19 levels.
- We see a greater risk that feedstocks/energy costs march higher into year-end, further pinching integrated polymer producer profit than polymer price strength spurring a rebound in margins.
- Street profit estimates, per our view, have not fallen enough for 2H22/2023 to give us confidence that an investor sentiment shift from negative to positive towards chemical sector equities is at hand.
- US ethanol margins held up WoW, crop prices on average also reflect support, and fertilizer prices rose relative to feedstock costs. Our constructive view of the agriculture sector remains intact.
Client Login
Learn About Our Subscriptions and Request a Trial
to gain full access and experience our services!