Daily Chemical Reaction
- The global commodity chemical market reflects oversupplied conditions in late 4Q22, heightening the risk of a further profit weakness into yearend if energy prices inflate.
- The increase in global natural gas prices WoW is a notable concern for North American chemical producers, as it implies a flatter global production cost curve into yearend.
- We highlight global ethylene production margins and cost curve developments by region in 2022, though most global product markets reflect oversupply.
- We highlight the cost curve displaying major CO2 mitigation strategies and discuss our concerns with the acceptance of premium “green” prices near term in some products.
- We discuss the Deere business update and 2023 outlook showing a continuation of benefits from a strong farm economy that aligns with our agriculture sector view.
See PDF below for all charts, tables and diagrams