Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Chevron, ExxonMobil, Dow, LyondellBasell, Nova Chemicals, Borealis, OMV, Eastman, Aramco, Albemarle, Compass Minerals, Ganfeng Lithium, SQM, Livent, Shandong Energy, Italmatch, Solvay, TotalEnergies, Cummins, Maire Tecnimont, Avina Clean Hydrogen, Johnson Matthey, Orbia, ArcelorMittal, CNH Industrial, CEMEX, Aker Carbon Capture, Avanti Helium, Phillips 66, TC Energy, BP, Kemira, Williams, Enverus, Coterra, Dominion

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

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