Daily Chemical Reactions

Happy Thanksgiving, But A Likely Cold December Ahead – Global Chemical Profits To Shiver Into 2023
November 23, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
LyondellBasell, Dow, Braskem, Air Products, Linde, Air Liquide, New Fortress, Trafigura, Agilyx, Technip Energies, Kumho Petrochemical, Johnson Matthey, LG Chem, American Vanguard, BKV, Devon Energy, TotalEnergies, Solvay, BASF, Deere, Baker Hughes, INEOS, Stecco Petrochemical, Syzygy, Vestas, Siemens Gamesa, Cemex, Larsen & Toubro, ConocoPhillips, Sempra, Rio Tinto, Michelin, Pyrowave, Alterra Energy, Berry Global, Röhm, EMS Group

Daily Chemical Reaction

Happy Thanksgiving, But A Likely Cold December Ahead – Global Chemical Profits To Shiver Into 2023

Key Points:

  • 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

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