Daily Chemical Reactions

Hungry Heart – Energy Sector Boosts Investments In Petrochemicals Amid ESG Pressure & Growth Concerns
November 18, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Aramco, CP Chemical, Chevron, QatarEnergy, Enterprise Products, Energy Transfer, LyondellBasell, Dow, Formosa Plastics, ExxonMobil, Celanese, Nutrien, CF Industries, LSB Industries, Grupa Azoty, Umicore, DCW, Chemours, SQM, Livent, Albemarle, Lithium Americas, Ganfeng Lithium, Sumitomo Seika, Ballard, BHP, Oz Minerals, Ovintiv, Ballard Power Systems, Shell, Siemens Energy, PlastiPak, EVgo, Sears, Macy’s, Kohl’s, Pitney Bowes

Daily Chemical Reaction

Hungry Heart – Energy Sector Boosts Investments In Petrochemicals Amid ESG Pressure & Growth Concerns

Key Points:

  • Despite weak global commodity chemical fundamentals, capital investment in this area reflects support as energy sector participants push their portfolios downstream.
  • We discuss the drop in Brent Crude relative to US natural gas WoW and add to our general views on global petrochemical cost curve developments in 4Q22 and 1H23.
  • We highlight US propylene and ethylene spot market movements compared to their October contract settlement prices and price developments for both into the yearend.
  • We flag the importance of cutting emissions from the fertilizer sector to decarbonize food markets and discuss the rising low-carbon ammonia demand beyond fertilizer.
  • Our chemical sector supply concerns are much lower than demand concerns into 2023 – we flag freight rates, rail traffic statistics, and retailer reports supporting our view.

See PDF below for all charts, tables and diagrams

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