Daily Chemical Reactions

Hard Rain’s A-Gonna Fall – But, It Is Occurring And Known, 1H23 Sector Profit May Beat Low Estimates
December 29, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Westlake, Olin, Orbia, Formosa Plastics, Shin-Etsu, Oxy, ExxonMobil, AkzoNobel, OQ, Sabic, Origin Materials, Sempra Infrastructure, Superior, Certarus, Woodside, Chimei, KPI, Forum Energy Technologies, Perstorp, Pemex, Tallgrass, Ineos, Sinopec, Lanzatech, Tesla, Cedar Fair, PKN Orlen, Neste, TSMC, Cal-Maine Foods, Carbon Streaming, Sumitomo Chemical, Amyris, Honeywell, Trina Solar

Daily Chemical Reaction

Hard Rain’s A-Gonna Fall – But, It Is Occurring And Known, 1H23 Sector Profit May Beat Low Estimates

Key Points:

  • Global chemical market indicators increasingly signal oversupply, supporting negative sector views that could lessen with any 1H23 energy and/or outage-season surprises.
  • We highlight natural gas price movements in Europe, Asia, and the US, and we flag the chemical markets most impacted by material natural gas and energy market swings.
  • Oversupplied global base chemical and polymers markets have caused operating rate cuts irrespective of cost curve placement in most markets – a quick fix looks unlikely.
  • Origin Materials provides an update on the timing of its Origin 1 manufacturing plant, and we also discuss recycling market headwinds and critical mineral tailwinds in 2023.
  • Global container freight rates have mostly reverted to 2017-2020 average levels, though the cost of shipping products from Europe to the US remains elevated.

See PDF below for all charts, tables and diagrams

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