Daily Chemical Reactions

Let’s Groove – Efforts To Lengthen Chemical Product Chains To Stay In Motion Despite Macro Uncertainty
October 19, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Ineos, Ashta Chemicals, Westlake Chemical, Olin, Occidental, Formosa Plastics, Shin-Etsu, Compass Minerals, Koch Minerals & Trading, Neste, Shell, CNOOC, Air Liquide, Indorama Ventures, Kuraray, Calgon Carbon, Symrise, Cyclyx, ExxonMobil, LyondellBasell, Asahi Kasei, Bayer, Gingko Bioworks, Trecora, Braskem Idesa, Chevron, Uniper, Baker Hughes, ICL Group, Albemarle, Livent, SQM, Tianqi Lithium, J.B. Hunt, Sasol, BASF, Nestle, Albertsons, Sumitomo Rubber

Daily Chemical Reaction

Let’s Groove – Efforts To Lengthen Chemical Product Chains To Stay In Motion Despite Macro Uncertainty

Key Points:

  • We highlight the Chlor-Alkali market, in light of Ineos and Ashta Chemicals news, and discuss why strategic moves to lengthen product chains are ongoing in select markets.
  • Brent crude oil prices have risen relative to US natural gas, pushing this basic global chemical cost curve ratio higher from recent lows in support of domestic margins.
  • We discuss Europe and Asia co-product integrated ethylene production costs relative to those in the US, and highlight the notable recent decline in US PDH unit economics.  
  • We think the voluntary carbon market may see upheavals that are now present in the ESG investing community due to low rule clarity, and we discuss our ammonia view.  
  • We discuss reports from Albertsons and Nestle that highlight significant food price inflation and highlight numerous negative indicators from the housing market.

See PDF below for all charts, tables and diagrams

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