Daily Chemical Reactions

West Side Story – Consumer Price Headwinds Much Greater In Europe & North America Than In Asia
October 13, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
CF Industries, ExxonMobil, Braskem, Dow, CP Chemical, LyondellBasell, Yara, K+S, Fastenal, Petrobras, BASF, Covestro, Grupa Azoty, IFF, Hyundai Oilbank, Lotte Chemical, Ascend Elements, EcoPro Group, EQT, TotalEnergies, Nexeo Plastics, Sempra Infrastructure, AVANGRID, Wabtec, Enviva, Diamondback Energy, Shell, Mitsubishi Heavy Industries, Gevo, Graphic Packaging, Plug Power, Uniper, Michelin, Fuel Hydrogen, BP, Chevron

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

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