Daily Chemical Reactions

One Right Now – Agriculture Stays In Favor; Negative 2H22 Profit Revisions Plague Chemical Sector
September 14, 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, Corteva, Westlake, Olin, Huntsman, Dow, Mura Technology, Cheniere, Milliken, BASF, Brightmark, Koch, LyondellBasell, Poet Biorefining, Green Plains, Valero Energy, Archer Daniels Midland, Marquis Energy, Nucor, Crescent Energy, Andritz, Danimer Scientific, Encina, Li-Cycle, Tokia Carbon, Bayotech, Carlisle, Technip Energies, APChemi, Topsoe, First Ammonia, Flowserve, Johnson & Johnson, Rio Tinto, X-Elio

Daily Chemical Reaction

One Right Now – Agriculture Stays In Favor; Negative 2H22 Profit Revisions Plague Chemical Sector

Key Points:

  • Compelling investment entry points in commodity and specialty chemicals could arise in 2H22, but not until profit views reset lower. Agriculture reflects more support.
  • Europe energy markets reflect an extreme “have and have not” setting. We discuss why some are seeing extraordinary profits while others need government support.
  • We discuss the potential impact of the US rail strike on the chemicals sector, a few corporate updates, and falling integrated Asia production costs relative to US levels.
  • We provide a constructive view of the Dow and Mura Technology venture in advanced recycling in Europe and discuss mounting scrutiny towards many ESG data sets.
  • We show recent increases in the USD relative to major foreign currencies, flag rising US mortgage rates, and discuss growing indications of global economic headwinds.

See PDF below for all charts, tables and diagrams

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