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