Daily Chemical Reactions

Dreams – Europe Natural Gas Flop Promotes Profit Fantasies For Some Before Nightmares Likely Return
November 2, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
LSB Industries, Nutrien, K+S, CF Industries, Maersk, C.H. Robinson, Verde AgriTech, Bloom Energy, Denbury, Dow, ByFusion, Thyssenkrupp, Lapis Energy, Univar, Avient, Tellurian, Freeport LNG, Equinor, AMD, Advanced Energy, BP, ExxonMobil, Enterprise, Gulfport Energy, Pemex, Marathon, Aramco, Brenntag, Johnson Matthey, Maire Tecnimont, Ganfeng, Kensing, Kaman, United Rentals, Shell, Rohm, Clean Harbors

Daily Chemical Reaction

Dreams – Europe Natural Gas Flop Promotes Profit Fantasies For Some Before Nightmares Likely Return

Key Points:

  • A crisis of confidence has developed in Europe, which will not be lessened by an abrupt shift in circumstance, as its medium-to-long-term chemical sector risks remain high.
  • NW European natural gas prices have collapsed toward US levels, which has lifted profit hopes among regional chemical producers relative to the start of 4Q22.
  • Polymer market premiums in NW Europe relative to the US and Asia will likely face downward pressure, and we also flag fertilizer and lithium producer commentary.
  • We discuss LSB Industries’ blue and green ammonia expansion plans and related risks, and we also highlight our views that COP27 could prove generally miss expectations.
  • We highlight incremental updates from Maersk, C.H. Robinson, and others, combining to signal that the economy is slowing while signs of increased production are rising.

See PDF below for all charts, tables and diagrams

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