Daily Chemical Reaction
Dreams – Europe Natural Gas Flop Promotes Profit Fantasies For Some Before Nightmares Likely Return
- 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.
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