Daily Chemical Reactions

Breaking Bad – 2H22 Chemical Sector Profit Views Poised To Tumble, Agriculture Sector Ready To Rumble
September 13, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Nutrien, CF Industries, LSB Industries, Eastman Chemical, Air Liquide, Air Products, Kemira, Aemetis, Clariant, LyondellBasell, Chemtrade, Lynas, BASF, Samsung Heavy Industries, INEOS Styrolution, KBR, Borealis, Trexel, Repsol, Hanwha Solutions, GS Energy, Lanxess, Reliance, Stepan, Devon, Henkel, Global Amines, Avantium, Nel, Cheniere, Encina, Gevo, Nippon Shokubai, Lummus, Teijin, Eni

Daily Chemical Reaction

Breaking Bad – 2H22 Chemical Sector Profit Views Poised To Tumble, Agriculture Sector Ready To Rumble

Key Points:

  • Eastman cuts its 3Q22 EPS target to a level 20% below the consensus view – we flag our research, Too Drunk To Drive – 2H22 Consensus Views Lag Reality, Opportunities To Emerge As They Sober Up, anticipating sizable sector profit estimate cuts in 2H22.
  • Western market consumer price inflation estimates for full-year 2022 have surged YTD to show notably more inflation than Asia – a major concern for Western producers.
  • We highlight market factors supporting tight corn and soybean markets and discuss why we continue to view profit conditions as favorable for US fertilizer producers.
  • Recycled PET prices are trending higher relative to virgin PET prices, putting packager resin sourcing ambitions to the test. We also highlight growing SAF market news.
  • We struggle to see a viable energy plan for Europe that does not include an expansion of its nuclear base and highlight a few relevant power market trends in the region.

See PDF below for all charts, tables and diagrams

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