Daily Chemical Reaction
Down On The Corner – Global Polymer Prices Have Mostly Reset To Pre-Covid Levels, Costs Have Not
Key Points:
- Global polymers and many other commodity chemicals have mostly fallen back to pre-covid levels. However, producer margins remain compressed amid high energy prices.
- We discuss energy market trends and news that Mexico plans to build an LNG export hub in the Gulf of Mexico to serve Europe, which will likely depend on US natural gas.
- Despite recent cost relief, we are more concerned with higher 4Q commodity chemical production costs than rebounding global demand spurring chemical price increases.
- We discuss European geothermal development ambitions, green hydrogen producers by region and method and related developments, and recent EU CO2 price weakness.
- US 10yr treasury yields touch 4%, the first time this has happened in roughly 14 years. US home prices also declined MoM in July, and German business sentiment is falling.
See PDF below for all charts, tables and diagrams