Daily Chemical Reactions

Trading Places – Myriad Headwinds Face Chemical Sector Equities In 2023, Relative Trades In Focus
December 30, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
PPG, Sherwin-Williams, DuPont, Lanxess, Trinseo, Huntsman, Nova Chemicals, Dow, LSB Industries, Bloom Energy, Oneok, Venture Global, Evonik, Sabo, Engel, EDF Renewables, PhosAgro, Black & Veatch, BYD, Tesla, ABC Technologies, Westlake, Orbia, Oxy, Shintech, Formosa Plastics, Olin, Graco, Amazon, Home Depot, FedEx, TC Energy, Suncor Energy, TPC Group, LyondellBasell, Goodyear, Kraton

Daily Chemical Reaction

Trading Places – Myriad Headwinds Face Chemical Sector Equities In 2023, Relative Trades In Focus

Key Points:

  • Deteriorating consumer health and falling concern with chemical supply will hinder chemical sector equity performance in 1H23 – relative sub-sector bright spots exist.
  • Specialty chemical equities underperformed, and Fertilizer & Agricultural Chemical equities significantly outperformed in 2022 – different challenges face them in 2023.
  • Chemical operating rates have come under pressure globally in late 2022, and we discuss spot market trends that paint a relatively constructive view of US Chlor-vinyls.
  • We discuss the cost inflation seen in most clean energy projects in 2022, adding to views in our ESG weekly, A Spending Spree in ‘23 – But Profitable? Selectively Maybe.
  • We discuss the significant strength in the US mortgage rates and the US Dollar in 2022, flag North American rail traffic trends, and the 4Q22 drop in West Coast port activity.

See PDF below for all charts, tables and diagrams

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