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