Daily Chemical Reaction
Fix A Drink – Plastic Recyclers Face a Tough Profit Setting Hitting The Bottle, Intervention Needed
Key Points:
- US recycled resin prices reflect significant declines from 2H22 highs, adding significant risk to recycler profit and many sector growth initiatives to hit buyer content targets.
- NW Europe And Asia natural gas prices have risen considerably from 4Q22 lows relative to Crude and US natural gas. We also discuss regional US natural gas trends.
- We highlight the improvement in lithium prices relative to spodumene values in 4Q22, amid strong end-use demand that also benefits most clean energy materials.
- We highlight growing criticism of US clean energy targets as being “too good” and running the risk of pulling supply chains out of other global areas, such as Europe.
- The run-up in vehicle prices during the past three years has helped suppliers push prices – we discuss the headwinds facing the auto markets and its suppliers in 2023.
See PDF below for all charts, tables and diagrams