Daily Chemical Reaction
What Am I Gonna Do With You – Commodity Prices Find Love Amid Supply Cuts, CPI Gains MoM Support
Key Points:
- The US Consumer Price Index (CPI) increased MoM but modestly slowed YoY in January 2023 – commodity market indicators reflect support in February, deeming a near-term collapse unlikely.
- We discuss the EIA estimates for refinery utilization and margins through 2024 and highlight a few notably different market views of refined products and petroleum demand through 2040.
- We discuss the OCI 4Q22 results and business outlook that paints a constructive picture of agricultural markets and fertilizer demand, including the postponement of 4Q farm purchases.
- Many estimates focus on the growth of CO2-free products based on potential demand, but the most significant supply determinant is how quickly clean, reliable power can meet this need.
- Global container freight rates, on average, have returned to the high end of the 2017-2021 range, presenting more indications of improving product availability than otherwise.
See PDF below for all charts, tables and diagrams