Daily Chemical Reactions

All Over The Road – Demand Speed Bumps Rise, Virgin Resin Weakness Could Brake Recycled Content Pledges
October 12, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Celanese, DuPont, BASF, Enterprise Products, Flint Hills, Aramco, Westinghouse, Brookfield Renewable, Repsol, Borealis, Safex Chemicals, Briar Chemicals, Toyobo, Indorama, Petronas Chemicals, Perstorp, GAIL, Kolmar, Sherwin-Williams, LyondellBasell, Superior Drilling Products, Air Products, Arkema, OMV Petrom, Rio Tinto, Viterra, Bockatech, BP, Capstone Green Energy, Cepsa, ExxonMobil, GM, Apollo, Arconic, Saint-Gobain, Uniper, PepsiCo

Daily Chemical Reaction

All Over The Road – Demand Speed Bumps Rise, Virgin Resin Weakness Could Brake Recycled Content Pledges

Key Points:

  • The US Sept. producer price index (PPI) posting exceeded expectations. Most views of inflation peaking in 4Q22 inadequately consider energy market and geopolitical risks.
  • Global economic growth concerns and energy transition headwinds support the OPEC crude oil supply cuts when considering their view of maximizing near-term cash flow.
  • We flag the BASF business update, discuss the EU conditional approval of the Celanese acquisition of DuPont M&M, and flag lows in US spot propylene relative to propane.
  • Virgin plastic prices have fallen relative to recycled resin prices, putting packager resin sourcing ambitions to the test. We also discuss carbon taxes and border adjustments.
  • US mortgage rates hit more than a 20yr high this week, mattress sales indicators are falling, and multiple data points suggest a global economic slowdown is underway.

See PDF below for all charts, tables and diagrams

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