Daily Chemical Reactions

Walk Em Down – Chemical Sector Profit Headwinds Continue Rise, Chemours Steps Its Profit View Lower
September 21, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Huntsman, PPG, Trinseo, General Mills, Lenzing, Chemours, Uniper, Dow, DuPont, Neste, Borealis, MAM, CF Industries, Evonik, BASF, Magnolia Oil & Gas, Shell, Valero, Tellurian, Advent International, Lanxess, Asahi Kasei, DOMO Chemicals, Eastman, Epsilyte, Ineos, Greiner Packaging, OMV, Olin, Piedmont Lithium, Toray, Air Liquide, PetroChina, Aramco, Schlumberger, Balaji Amines, W. R. Grace

Daily Chemical Reaction

Walk Em Down – Chemical Sector Profit Headwinds Continue Rise, Chemours Steps Its Profit View Lower

Key Points:

  • Global commodity chemical prices have declined during the past three months, but demand concerns outweigh the benefits of cost relief for most derivative producers.
  • We highlight the significant working capital issues facing many European utilities and flag recent movements in European natural gas and power prices relative to US levels.
  • Chemours cuts its profit guidance for 2022 below street estimates, adding itself to a growing list of producers expecting lower 2H22 profit – we foresee more cuts ahead.
  • We discuss the rising arguments for and against ESG investing, establishing a Midwest US hydrogen hub, and the risk of over-relying on renewables in most forecasts.  
  • US mortgage rates have climbed to their highest level since 2008 this week, and the USD has strengthened to roughly a 10yr high relative to major foreign currencies.

See PDF below for all charts, tables and diagrams

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