Daily Chemical Reactions

Lithium: Stronger for Longer or Hubris Following A Blow Out Year: High Prices Encourage New Entrants
January 24, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Albemarle, Livent, SQM, Pilbara Minerals, ICL, Lanxess, 3M, Borealis, Evonik, Covestro, Saint-Gobain, Aether Industries, Symrise, Petro Rabigh, Wacker, Sasa Polyester, Honeywell UOP, Citroniq Chemicals, Mitsui & Co., Reliance, UPL, Vitol, Freeport LNG, SK Geo, Plastic Energy, Baker Hughes, Siemens, NextEra Energy, OCP, Trafigura, Nayara Energy, Summit Plastics, OQ Chemicals, Halliburton, Greenland Resources, Air Liquide, Sasol

Daily Chemical Reaction

Lithium: Stronger for Longer or Hubris Following A Blow Out Year: High Prices Encourage New Entrants

Key Points:

  • Clean energy mineral forecasts are broadly bullish. We see near-to-medium-term conditions staying tighter than most chemical markets, but our view is not risk-free.
  • We discuss movements in Asia, Europe, and US natural gas prices and potential shifts considering European storage levels, the Freeport LNG restart, and future demand.
  • We provide a global production cost curve view for lithium and bromine. Albemarle and a few of its peers are well situated in this area, which lessens relative return risks.
  • We highlight the estimated benefits of Biden’s green subsidies through 2031 that will drive many markets, including hydrogen, inciting the envy of many foreign countries.
  • The US leading economic indicator index eroded into late 2022, and we flag 3M 2023 views, rising auto loan delinquencies, and a potential strengthening in US fuel prices.

See PDF below for all charts, tables and diagrams


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