Daily Chemical Reaction
On The Road Again – Asia BD Prices Rise Relative to US Levels, Derivative Prices Signal Demand Revival
Key Points:
- Asia spot butadiene (BD) prices have increased YTD on an absolute basis and relative to US values. We discuss the strength in BD derivatives and Asia BD price trends relative to ethylene.
- US natural gas prices are much lower than 2022 highs, and we discuss movements in North American natural gas markets to show USGC’s weakness relative to Marcellus and Alberta.
- We highlight several European chemical sector 4Q22 reports reiterating the common sector 2023 outlook suggesting that profitability in 1H23 will be much more challenged than in 2H23.
- We discuss challenges facing the onshore wind sector, highlight initiatives among chemical producers to source renewable energy, and efforts to prove product circularity to customers.
- North American chemical rail traffic remains in the dumps, led by lower volumes YTD in the US. We also show Covestro views of global demand growth by key product industries for 2023.
See PDF below for all charts, tables and diagrams