Daily Chemical Reactions

You’re A Mean One, Mr. Grinch – October Chemical Profit Trends Could Be Thrown Under The Sleigh By Christmas
October 20, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Dow, LyondellBasell, ExxonMobil, CP Chemical, Westlake, Epsilyte, Albemarle, Arakawa Chemical, AkzoNobel, Asian Paints, DCM Shriram, Gujarat FluoroChemicals, ICL, LG Chemical, Navin Fluorine, Nuberg EPC, OCI, Posco Chemical, PPG, Sabic, SCG Chemicals, Denka, Summit Midstream, Baker Hughes, TC Energy, Jack Daniel’s, Gail, JBF Petrochemicals, Nexus Circular, Woodside, Sherwin-Williams, TeraWatt, Shakti Plastic, Octopus Energy, Siemens Energy, Tesla, CNOOC, Shell, Borealis, BP

Daily Chemical Reaction

You’re A Mean One, Mr. Grinch – October Chemical Profit Trends Could Be Thrown Under The Sleigh By Christmas

Key Points:

  • The start of 4Q22 reflects commodity chemical profit levels below the 3Q average but higher than the 3Q lows in most products – it may mark the peak profit period for 4Q.
  • NW European natural gas prices have collapsed amid expectations of adequate winter supplies, though risks remain high. We also flag views of Permian gas processing.
  • We highlight several 3Q22 reports, ranging from Dow, to Stepan, to AkzoNobel, Asian Paints, and PPG, and discuss our general views of 4Q22 Street profit expectations.
  • We flag the circular and renewable solution targets at Dow, highlight a recycling venture at Borealis, and display several other relevant corporate and sector updates.  
  • US mortgage rates remain above 7%, at more than 20-year highs, and we observe more signs of consumer demand headwinds than those supporting optimistic views.

See PDF below for all charts, tables and diagrams

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