Daily Chemical Reactions

Harvest Moon – Material Producers Seek 2H Price Hikes, Buyers Expect Cost Relief – Both Can’t Be Right
February 9, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Trinseo, Unilever, Livent, SQM, Albemarle, Ganfeng Lithium, Glencore, Umicore, Freeport-McMoRan, Celanese, BASF, Dow, Ascend, Sumitomo, Huntsman, Westlake, Orbia, Shin-Etsu, Formosa Plastics, Nabors, Lotte Chemical, Mitsubishi Corporation, Kumho Petrochemical, Kuraray, Gujarat Fluorochemicals, Yasho Industries, Nagase, Lotte Fine Chemical, Sasol, ArcelorMittal, Chevron, Shell, BP, UPM Biochemicals, ProAmpac, Woodside

Daily Chemical Reaction

Harvest Moon – Material Producers Seek 2H Price Hikes, Buyers Expect Cost Relief – Both Can’t Be Right

Key Points:

  • The C-MACC Clean Energy Minerals Monthly Price Index was unchanged MoM in January, and we anticipate continued support in 1H23, though some materials will stay stronger than others.
  • Specialty chemical and downstream chemical product producers expect destocking to come to an end in 1H23 and lower raw materials in 2H23 – demand needs to hold up for them to benefit.
  • NW European and Asia natural gas has surged relative to US natural gas prices since mid-4Q22, though natural gas prices are lower in absolute terms in these regions, and we flag the EIA STEO.
  • We discuss the legal action being taken against Shell directors and the ongoing conflicts facing companies as clean activist agendas broadly differ from those of return-focused shareholders.
  • We highlight the weakness in North American chemical rail traffic YTD compared to 2022, and we also discuss Unilever’s views that further price hikes are needed for a full-margin recovery.

See PDF below for all charts, tables and diagrams

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