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