Daily Chemical Reactions

Flu Season Ahead, No Vaccine Will Help Europe
October 4, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Air Liquide, Olin, Borealis, Issaquena Green Power, Nutrien, LyondellBasell, Dow, Trinseo, TotalEnergies, Aramco, Orsted, Shell, Fluor, DuPont, BASF, Linde, Meraxis, PTTGC, Pensana, Freeport LNG, Lanxess, British Steel, Enviva, Enbridge, Yara, Petrobras, KBR, Neste, NextEra, Mitsubishi Chemical, Nucor, Ingevity, Technip, Sinopec, Idemitsu Kosan, BAE Systems, Trinity Industries

Daily Chemical Reaction

Flu Season Ahead, No Vaccine Will Help Europe

Key Points:

  • European chemical producers have faced harsh headwinds for most of 2022, but we think 4Q22 and 1Q23 hold more risk than what we see factored into most forecasts.
  • NW European natural gas values have fallen from recent highs. With European natural gas inventories high in anticipation of shortages, it may be the quiet before the storm.
  • We highlight depressed European monomer and polymer margins, 3Q sales guidance from Air Liquide, and Olin shifting some production from Europe to the US.
  • Borealis and VERBUND announce a JV to use green hydrogen to produce fertilizer, which is similar in this stage to our US Issaquena Green Power project development.
  • We highlight global freight rate developments, forecasts for German GDP growth in 2022/23, and flag input shortages lingering for many German manufacturers.

See PDF below for all charts, tables and diagrams

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