Daily Chemical Reactions

Backward Thinking: Will You Need The Feedstock To Compete?
January 10, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Oneok, Chevron, Chevron Phillips Chemical, QatarEnergy, Dow, ExxonMobil, Shell, Maire Tecnimont, Air Liquide, Air Products, Linde, BASF, Idemitsu, Tigo Energy, ATOME Energy, Bloom Energy, Petrobras, Lukoil, Yara, Showa Denko, Hexion, Engie, Nexam Chemical, Elogen, Advent Technologies, AmmPower, Charbone Hydrogen, Primobius, Vopak, RecycLIco, Elcogen, Deere, Lululemon, Tesla, Stellantis, Toyota

Daily Chemical Reaction

Backward Thinking: Will You Need The Feedstock To Compete?

Key Points:

  • Commodity chemical producers lacking feedstock integration face difficult choices as the energy sector expands downstream, pressuring non-integrated chemical returns.
  • The North American petrochemical producer cost advantage is significant relative to overseas peers, and so is the case for its energy producers serving the global markets.
  • We discuss US polyethylene contract price trends relative to US, NW Europe, and Asia spot market levels and January contract nominations facing considerable headwinds.
  • We discuss IEA research discussing patent developments across the hydrogen value chain from 2011-2020 and 2021-22 occurrences pushing growth capital into this area.
  • The decline in freight rates for ocean shipments, which have mostly returned to pre-COVID levels, and falling product price hike views suggest falling supply concerns.

See PDF below for all charts, tables and diagrams

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