Daily Chemical Reaction
Rollin’ and Tumblin’ – Global Polymer Prices Move Lower, US Premiums Shrink, Olin Cuts 3Q Profit View
Key Points:
- Global polymer prices have declined significantly relative to 1H22 highs, and we discuss the collapse in US premium polymer prices compared to Asia since 2Q22.
- US refinery margins remain above the price five-year range and notably higher YoY. We discuss refinery utilization rates and capacity growth estimates by region.
- Olin cuts its 3Q22 EBITDA guidance to a level more than 10% below the Street consensus view, and we highlight takeaways from Henkel’s capital markets day.
- Renewable natural gas is an area where demand will likely outpace availability, and we discuss reports on carbon tax incentives and global CCS developments.
- Though container freight rates from China to the US continue to plunge and Houston saw record port traffic in August, logistic challenges continue to face many industries.
See PDF below for all charts, tables and diagrams