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