Sunday Thematic & Weekly Recap

A Non-Inflationary China Recovery Is Not Good News For Chemicals
February 19, 2023
Commodities Mentioned:
Plastics, PVC, Polyethylene, Polypropylene, PU, PC, PET, Critical Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Ammonia, Nitrogen, Oxygen, Wind, Solar, Nuclear, Coal
Companies Mentioned:
Dow, Westlake, LyondellBasell, Enterprise Products, Nova Chemicals, 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 Technologies, Nucor, Ecolab, Sensient, Ford, Coca-Cola, Herc Holdings, LCI Industries, Avient, ICL, Celanese, Covestro, BASF, Wanhua Chemical, Owens Corning, Univar, Brenntag, TotalEnergies, PTT Global Chemical, Evonik, Asahi Kasei, Osaka Soda, Kaneka, Arlanxeo, Posco Holdings, Peabody Energy, BP, TC Energy, Glencore, Boeing, Airbus, Idemitsu Kosan, Superior Drilling Products, Mawson Infrastructure Group, Wabtec, Kraft Heinz, Pirelli, Shell, ExxonMobil, Vestas, Bloom Energy, Air Products, Aker Carbon Capture, Aemetis, LSB Industries, RWE, Albemarle, Air Liquide, Mitsubishi Chemical, Maire Tecnimont, DSM, Tronox, Grasim Industries, Vopak, PetroChina, Honeywell, Topsoe, Freepoint Ecosystems, Fortescue Future Industries, Piedmont Lithium, LG Chem, NRG Energy, Cheniere, Huntsman, Trinseo, Rio Tinto, Marubeni, JERA, Altus Power, Tigo Energy, Aurora Solar, Tesla, AdvanSix, Orion Engineered Carbons, Repsol, Energy Transfer, Enbridge, Vitol, Sinopec, Reliance, Grupa Azoty, Tata Steel, Hengyi Industries, IMCD, Williams, CenterPoint Energy, NGL Energy Partners, Charter Next Generation, PBF Energy, Eni, Stepan, Antero, Keyera, Talos Energy, EDF, Chevron, Oxy, Axalta, Olin

C-MACC Sunday Thematic & Weekly Recap 156

A Non-Inflationary China Recovery Is Not Good News For Chemicals

  • China has enough spare capacity/labor to support its economic growth without price rises, assuming crude oil inventory is such that it is not inflationary for energy.
  • A steepening of the global petrochemical production cost curve, coupled with stronger-than-expected growth, is needed for prices to exceed most expectations.
  • A risk for US chemicals is slow growth in China and a crude oil inventory draw – lowering global demand and driving prices down – this has happened before.
  • Agriculture market outlooks remain constructive, and we discuss why we think ammonia markets could be taking a recent breather before becoming much tighter.
  • We discuss global freight rate weakness, given improved supply availability, and other energy and economic data supporting our view of global supply/demand.

Last week we discussed 21 Chemicals and Related Products and 133 Companies.

See PDF below for all charts, tables and diagrams

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