Daily Chemical Reactions

Wasted on You – Demand To Soak Up Oversupplied Markets Trumps Cost Curve Placement, For Now
December 28, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
INEOS, Sinopec, Nova Chemicals, Amcor, NextDecade, Honeywell, IFF, Nippon Soda, Meghmani Organics, ESM, ProLogium, Petro Rabigh, SK Materials, Showa Denko, Asian Paints, Grupa Azoty, Neste, KMG, Chevron Phillips Chemical, Plains All American, Sumitomo Chemical, Mondi, Henkel, Synova, Sabic, Technip Energies, Engel, Topsoe, Dow, BASF, Linde, Rayonier Advanced Materials, Mitsubishi Electric, ABB, Baker Hughes, Marathon Oil Corp.

Daily Chemical Reaction

Wasted on You – Demand To Soak Up Oversupplied Markets Trumps Cost Curve Placement, For Now

Key Points:

  • Global chemical markets moved from tight conditions in early 2022 to oversupply by yearend, and we view demand as much more of a wild card than supply in 2023.
  • NW European and US natural gas prices have fallen notably relative to Brent Crude levels in December. We also discuss E&P spending and US LNG export prospects.
  • We discuss Ineos, Nova, and a few other global petrochemical expansions to display varying motivations from cost-curve placement to reliance on local demand growth.
  • We comment on RNG market developments and discuss China’s significant market share in manufacturing major components for most global solar energy projects.  
  • We highlight US manufacturer order book trends, Mastercard holiday spending insights last week, and higher interest rates hurting luxury real estate values.

See PDF below for all charts, tables and diagrams

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