Daily Chemical Reactions

Hold On, I’m Comin’ – US Petrochemical Margins Have Improved In 1Q23, Supply Response Ahead
January 31, 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, Phillips 66, LyondellBasell, Braskem, Westlake, Oxy, Shin-Etsu, Orbia, Olin, BP, Kirby Corporation, Petronas, Mitsubishi, Origin Materials, Saint-Gobain, Johnson Matthey, Plug Power, Sekisui Chemical, Covestro, Linde, BHP, Synthomer, Li-Cycle, Albemarle, Posco Chemical, LG Chem, Zeon, Sumitomo Chemical, Tokuyama, Harima Chemicals, Evonik, Grupa Azoty, Ube, Indorama, Whirlpool, UPS

Daily Chemical Reaction

Hold On, I’m Comin’ – US Petrochemical Margins Have Improved In 1Q23, Supply Response Ahead

Key Points:

  • Multiple US petrochemical producers highlight that margins have bottomed with their 4Q business reports, but a sector supply response could reverse recent improvements.
  • We discuss the BP 2023 energy outlook, as its demand forecasts for oil and natural gas show why most cautiously approach significant long-term investments in this area.
  • We highlight 4Q22 chemical segment results from ExxonMobil and Phillip 66, flag the drop in HDPE integrated margins at CP Chemical and discuss its growth ambitions.
  • We discuss the Johnson Matthey and Plug Power JV and highlight why many new, small-scale energy transition technologies could face challenges as the scale increases.
  • We cautiously approach the raised IMF economic forecast for 2023 as we continue to find more signs of lukewarm global consumer demand than signs of improvement.

See PDF below for all charts, tables and diagrams

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