Daily Chemical Reactions

What Am I Gonna Do With You – Commodity Prices Find Love Amid Supply Cuts, CPI Gains MoM Support
February 14, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
OCI, Yara, Nutrien, CF Industries, PPG, Unilever, Ineos, Galaxy Surfactants, Braskem, PTTGC, Solvay, Freeport LNG, Cleveland-Cliffs, Sasol, Fertiglobe, Neste, NextChem, Indorama Ventures, VoltH2, Umicore, Linde, Equinor, Idemitsu, Toray, Sumitomo, Maruzen, Mitsui Chemicals, Chevron Phillips Chemical, Lanxess, Advent, Nucor, Ecolab, Sensient, Ford, Coca-Cola, Herc Holdings, LCI Industries

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

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