Daily Chemical Reactions

November Air – Consumer Sentiment Falls, Energy Market Risk Suggests December Could Be Stinky
November 11, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Nutrien, CF Industries, Yara, K+S, LSB Industries, Indorama Ventures, Orica, Showa Denko, Vopak, Compass Minerals, Satorp, PureCycle, LyondellBasell, FMC, Corteva, Bayer, Syngenta, IMCD, Oxy, Aramco, Asahi Kasei, Pertamina, Keppel Infrastructure, Chevron, Eletrobras, United Airlines, Li-Cycle, Superior Drilling, FREYR, Beazer Homes, Bloom Energy, CEMEX, Archer, Nikola, Keystate, Wood, PureWest

Daily Chemical Reaction

November Air – Consumer Sentiment Falls, Energy Market Risk Suggests December Could Be Stinky

Key Points:

  • The drop in US consumer sentiment MoM in November is a notable concern for many chemical end markets, especially given the risk of a winter-led energy price surge.
  • The sharp volatility in global oil and natural gas around what are much higher averages for both – wherever you are in the world – indicates a lack of directional conviction.
  • We highlight USDA estimates for increased corn plantings YoY in 2023, which aligns with our acreage view and supports our positive case on fertilizer use next year.
  • We highlight mounting commentary on power purchase agreements (PPAs) as an item favoring some projects over others, especially considering rising renewable demand.
  • We discuss the drivers of agriculture productivity and highlight continued macro indications global consumer demand troubles remain elevated compared to supply.

See PDF below for all charts, tables and diagrams

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