Daily Chemical Reactions

Heart Like A Truck – Global Chlor-Vinyl Demand Is Weak, Cost Advantages Drive US Margin Support
February 28, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Oxy, Westlake, Olin, Shin-Etsu, Formosa Plastics, Chevron, Ecovyst, CF Industries, Ingevity, Indorama Ventures, SABIC, Croda, Solvay, Nippon Shokubai, Nouryon, Chemanol, Saudi Kayan, PKN Orlen, Evonik, Core Lithium, Mitsubishi Chemical, Golden Agri Resources, Air Liquide, Vencorex, PTTGC, PPG, ChemDirect, North American Helium, Excelerate Energy, Venture Global, SK Materials, ExxonMobil, EOG, Pemex, Uniper, BP, Pioneer

Daily Chemical Reaction

Heart Like A Truck – Global Chlor-Vinyl Demand Is Weak, Cost Advantages Drive US Margin Support

Key Points:

  • US Chlor-Vinyl margins have increased from 4Q22 lows in 1Q23, and we discuss Oxy views of this product chain in 2023 – we share a constructive view of this market relative to peer products.
  • Chevron shows plans for growing its oil and gas business at its investor day, and we also discuss the Oxy 4Q22 report and outlook and global LNG capacity and demand growth.
  • We highlight the SABIC view for 2023 that expects petrochemical margins will remain under pressure, and we discuss Ecovyst views by customer category and other chemical sector items.
  • The global race for clean ammonia is underway, and we flag another CF Industries potential project and offtake. We also discuss DAC to sequestration economics, among other items.
  • Global shipping rates have mostly reset to pre-covid levels, and we highlight indications that some shippers are now canceling voyages to prop up rates, among other market indicators.

See PDF below for all charts, tables and diagrams


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