West Side Story – Consumer Price Headwinds Much Greater In Europe & North America Than In Asia

Daily Chemical Reaction

West Side Story – Consumer Price Headwinds Much Greater In Europe & North America Than In Asia

Key Points:

• Western market consumers face greater price inflation than those in Asia in 2022, and most expect it to occur again in 2023. A plus for Asia, but a negative for the West.
• We discuss upcoming US mid-term elections, as government support is needed for the fossil fuel industry and energy transition rather than abandoning one for the other.
• We discuss the decline in Sept. US polyethylene (PE) contract prices, though spot levels suggest further declines in 4Q22. We also highlight a European fertilizer plant restart.
• We discuss the CF Industries and ExxonMobil partnership as a positive development for large-scale CCS. We also flag ERCOT renewable power stats and plastics legislation.
• We highlight EIA forecasts for much higher US electricity prices this winter, note a few major takeaways from Fastenal 3Q results, and frame US auto price appreciation.

See PDF below for all charts, tables and diagrams