Daily Chemical Reactions

Highway On The Water – Elevated Ammonia Export Markets To Limit Domestic Fertilizer, Hurt Farmers
January 4, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Nutrien, CF Industries, LSB Industries, Wacker, OCI, Hemlock, Lanxess, TotalEnergies, Ineos, Pinnacle Polymers, KBR, Asian Paints, Piedmont Lithium, Tesla, PKN Orlen, Brenntag, Univar, Indorama Ventures, Borealis, ExxonMobil, Chevron, Chlorum, Bloom Energy, Valmont, Stellantis, JBM Packaging, LanzaTech, Origin Materials, Primoris Services, Arcadia efuels, Freeport LNG, California Resources Corporation

Daily Chemical Reaction

Highway On The Water – Elevated Ammonia Export Markets To Limit Domestic Fertilizer, Hurt Farmers

Key Points:

  • US ammonia prices and production margins remain elevated, a positive for producers but a negative for farmers as domestic fertilizer production competes with exports.
  • NW European natural gas prices have fallen considerably relative to US levels, a plus for regional chemical producers, but the price points remain volatile and far apart.
  • We show the significantly higher US ammonia production margins in the US relative to Europe and highlight negative non-integrated urea production margins in the US.
  • We flag the recent collapse in polysilicon prices relative to solar module values, and we discuss the US recycling market and legislation put in motion to spur its growth.
  • We highlight the recent weakness in multiple PMI positions around the globe, including the US and China, and discuss recent movements in global freight rates.

See PDF below for all charts, tables and diagrams


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