Daily Chemical Reactions

Electric Avenue – Rising Demand To Support Clean Energy Mineral Index, Greater Risk In Other Chains
September 7, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Livent, SQM, Albemarle, Ganfeng Lithium, Glencore, Umicore, Celanese, BASF, Dow, Huntsman, LyondellBasell, Braskem, Nova Chemicals, Shell, ExxonMobil, Chem One, Chevron, Repsol, Sinopec, Kemira, OMV, Solvay, Tokai Carbon, Sabic, Sitio, Brigham, Trinseo, Air Products, Imperial Oil, Axens, Black & Veatch, Maire Tecnimon, JERA, Constellation Energy, Newell Brands

Daily Chemical Reaction

Electric Avenue – Rising Demand To Support Clean Energy Mineral Index, Greater Risk In Other Chains

Key Points:

  • Our clean energy mineral price index declined for the fifth consecutive month in August, but the rate of decline has moderated. We do not foresee a collapse in 2H22.
  • We flag the modest improvement WoW in Brent Crude and Ex-US naphtha relative to US natural gas and USGC ethane, though the ratios are notably below YTD highs.
  • Global ethylene margins remained negative in Asia, NW Europe, and the US last week, and further polymer price declines have pushed integrated producer profits lower.
  • We discuss the significant EU hydrogen demand growth set by REPowerEU targets for 2030 and flag the notable benefits from 45Q for CCUS and falling EU CO2 values.
  • The US Dollar reflects sizable strength relative to the Euro and Yen, a mounting headwind for US exporters, and freight rates from China to the US fell again WoW.

See PDF below for all charts, tables and diagrams

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