Sunday Thematic & Weekly Recap

As Chemical Earnings Fall, Capital Allocation To Chemicals May Rise
January 8, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Critical Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Renewable Power, Wind, Solar, Hydro, Nuclear, Raw Materials, PV, Renewables, Batteries, EVs, Oil, Nickel, Copper, Lithium, Cobalt, Graphene, Polysilicon, R-PE, Carbon, Carbon Black
Companies Mentioned:
Livent, SQM, Albemarle, Ganfeng, Glencore, Umicore, Freeport-McMoRan, Celanese, BASF, Dow, Ascend, Sumitomo, Huntsman, 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, Vestas, First Solar, Covestro, Freeport McMoRan, Cheniere, NuScale, RoPower, Ford, Longi, TCL, Livent, Ganfeng Lithium, Fulcrum Bioenergy, PureCycle Technologies, Yara, RPM, PPG, Sherwin-Williams, AkzoNobel, MOL, Targa, Talos, Lindsey, Adnoc, Chemanol, Vopak, Hydrogenious, Beyond 6, Nayara Energy, Equinor, Unipetrol, Tokyo Gas, Sumitomo Chemical, Fluor, Nexus Circular, Suncor, Boston Metal, Itawana Corp, Aker Carbon Capture, Chart Industries, Schnitzer, Mitsubishi Electric, PG&E, Samsung, Amazon, Salesforce, Shell, Westlake, Olin, OxyChem, Shin-Etsu, Braskem, LyondellBasell, Phillips 66, DCP Midstream, HH2E, Nel, Berry Global, Petrochina, Yulin Energy, BP, Circulus, EQT, Montrose Environmental, Lithium Americas, Bakken Energy, Oceana, Mercedes-Benz, Geely, Blackrock, Citi, Maersk, Bed, Bath & Beyond, Patterson-UTI

C-MACC Sunday Thematic & Weekly Recap 150

As Chemical Earnings Fall, Capital Allocation To Chemicals May Rise

  • Like peers in 2022, ExxonMobil and Shell’s chemical business weakness was overwhelmed by record profit elsewhere, but chemical investments are rising.
  • The agriculture sector looks like it is in for another strong year, with high crop prices enabling farmers to absorb elevated fertilizer and other input costs easily.
  • The possible loser is urea, where non-integrated margins remain negative, suggesting that others can pay more for ammonia – we see this trend continuing.
  • US railcar data for chemicals is notably weak when viewed in the context of higher US polymer capacity, implying demand weakness and production cutbacks.
  • Otherwise, we discuss a few early 2023 business updates, expectations for renewable power shortages versus potential demand, and where to invest.

Last week we discussed 32 Chemicals and Related Products and 120 Companies

See PDF below for all charts, tables and diagrams

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