Daily Chemical Reactions

Relieving Stress – Western Natural Gas Price Drop Favors Chemical Production, Lifts Oversupply Risk
January 5, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
ExxonMobil, Yara, RPM, PPG, Sherwin-Williams, Asian Paints, AkzoNobel, MOL, Targa, Talos, Lindsey, Adnoc, Chemanol, Vopak, Hydrogenious, Chevron, Beyond 6, Nayara Energy, Equinor, Unipetrol, Tokyo Gas, Sumitomo Chemical, Fluor, Nexus Circular, Suncor, Boston Metal, Itawana Corp, Aker Carbon Capture, Univar, Brenntag, Chart Industries, Schnitzer, Mitsubishi Electric, PG&E, Samsung, Amazon, Salesforce

Daily Chemical Reaction

Relieving Stress – Western Natural Gas Price Drop Favors Chemical Production, Lifts Oversupply Risk

Key Points:

  • Weakness in Western natural gas prices favors chemical production, lifting oversupply risk in many products, especially in areas with overly optimistic demand outlooks.
  • We discuss factors impacting ExxonMobil 4Q22 results relative to 3Q22 and note that its 2022 EBITDA will still likely be ~2x full-year 2021 EBITDA – over US$100 billion!
  • We highlight the Yara announcement to add ammonia import capabilities in Europe and discuss RPM results that include an early-year view worth consideration for peers.
  • We highlight an auto supplier view that China holds a 10,000 Euro EV production cost advantage over European peers and rising China EV exports, along with other items.
  • Consumer confidence indicators are increasingly at odds with consensus inflation forecasts in many product chains. We also flag ifo German auto sentiment trends.

See PDF below for all charts, tables and diagrams


Client Login

Learn About Our Subscriptions and Request a Trial

Contact us to gain full access and experience our services!

Request a Free Trial

Archives