Daily Chemical Reactions

Love For Sale – Europe Assets Move To Bargain Bin Amid Currency Depreciation, Weak Fundamentals
September 27, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
AkzoNobel, Sherwin-Williams, PPG, Avient, Celanese, DuPont, Methanex, Borealis, Reliance, Sibur, Umicore, Interzero, Eastman, Chevron, BP, Petrobras, TotalEnergies, Element Materials, Berry Global, Aquaterra Energy, Arkema, Rio Tinto, Selenis, Westlake, Olin, Shin-Etsu, Occidental, Formosa Plastics, Hess, Nabors Industries, Halliburton, Schlumberger, Shell, Toray, Yokogawa, GreenFirst, DAK Industries

Daily Chemical Reaction

Love For Sale – Europe Assets Move To Bargain Bin Amid Currency Depreciation, Weak Fundamentals

Key Points:

  • AkzoNobel provides a business update stressing fundamental headwinds in 3Q22 will likely persist in 4Q, and European currencies have devalued relative to the US Dollar.
  • US energy exports remain in considerable demand abroad – we flag trends in LNG and petroleum product markets that favor higher US prices amid strong global demand.
  • We are more concerned with global chemical demand than supply availability in 2H22, noting takeaways from the ACC, Avient, AkzoNobel, and Chlor-vinyl trends in China.
  • We discuss hydrogen hub developments and government initiatives to ensure their success, highlight generally weak recycled polymer markets, and SAF market news.
  • US mortgage rates have surged towards 7%, China freight rates to the US continue to collapse, and the US Dollar reflects a ~20year high relative to major foreign currencies.

See PDF below for all charts, tables and diagrams

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