Tracks Of My Tears – European Chemical Producers Reposition, Permian Gas Sellers Temporarily Weep

Daily Chemical Reaction

Tracks Of My Tears – European Chemical Producers Reposition, Permian Gas Sellers Temporarily Weep

Key Points:

• We discuss the continued push among specialty chemical producers to recapture margins and more global announcements of strategic repositioning among producers.
• We highlight much tighter conditions in the US Diesel market relative to the Gasoline market and flag the risk of the Diesel market adding to consumer inflation pressures.
• BASF has telegraphed concerns for its European business since the Ukraine/Russia conflict started. We discuss its European downsizing and other producer 3Q releases.
• We discuss challenges in Europe to aggressively shift its mix to renewables from fossil fuel-based power and see exorbitant costs as an issue for some recycling initiatives.
• We remain concerned that the better auto market – referenced by BASF in China and GM – could be a flash in the pan, and we flag US mortgage rates at a new YTD high.

See PDF below for all charts, tables and diagrams