GOOOAAAAL! INEOS Scores Again – Thanks For The Validation

C-MACC Sunday Thematic & Weekly Recap 157

GOOOAAAAL! INEOS Scores Again – Thanks For The Validation

• Our theme around the possible need for backward integration for all basic chemical producers as energy transition evolves was validated by INEOS this week.
• INEOS is buying inputs for its US and European ethylene plants and natural gas for its LNG agreement with Sempra – we might see the company buy more.
• Ethylene likely won’t be driven by cost curves based on market-priced inputs in 10 years – hydrocarbon integration economics will drive investment and success.
• We look at more results – weak and getting weaker in Europe for traditional chemicals but strong and getting stronger when supplying energy transition.
• We also look at recent auto data and maintain our view that this is likely to be a bad year for automakers getting worse as the year progresses.

We are 8 days away from the start of CERA week in Houston (happy to meet up with anyone attending).  

See PDF below for all charts, tables and diagrams