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