Daily Chemical Reaction
February Snow – Rising Supply, Chilly Demand To Put Some Early 2023 Chemical Margin Upticks On Ice
Key Points:
- Production cuts in 2H22 helped trim inventories and lift chemical prices in early 2023 – we discuss recent propylene and polypropylene price trends and headwinds ahead.
- We highlight rising energy company growth ambitions in chemicals and alternatives amid growing ESG pressure, and we flag the potential Freeport LNG restart in the US.
- We flag Enterprise Products chemical and refined products results in 4Q22 and show US ethylene and propylene (PDH) margins relative to NGL fractionation spreads.
- We note challenges facing Eastman in molecular recycling, the role of mechanical and molecular recycling in a circular economy, and a few renewable fuels commentaries.
- Global container freight rates on avg. and the Baltic Exchange Dry Index have weakened to 2019 levels recently amid improving supply chain health worldwide.
See PDF below for all charts, tables and diagrams