Help Me Make It Through The Night – Global Cost Curve Steepening Will Combat Oversupply Setting, For Some

Daily Chemical Reaction

Help Me Make It Through The Night – Global Cost Curve Steepening Will Combat Oversupply Setting, For Some

Key Points:

• We are more concerned about chemical demand than supply in 2023. A steepening of global production cost curves may help offset tepid demand in support of prices.
• Crude oil values have increased relative to US, Europe, and Asia natural gas prices since late 2022, all eyes are on reopening China and a possible oil demand boost.
• BASF’s earnings miss is in line with cost pressures and demand pressures in Europe none of which look likely to correct quickly – more permanent plant closures likely.
• We challenge the hydrogen hub idea and believe that the focus should be on power first. We also look at litigation which is stepping up in the face of apparent inactivity.  
• As global container freight rates return to pre-covid norms, China may get an export boost, but lack of demand may drive some trade challenges as 2023 unfolds.

See PDF below for all charts, tables and diagrams