Daily Chemical Reaction
You Gave Me A Mountain – After Reaching A 2022 Price Peak, The C-MACC Clean Mineral Index Faces High Altitude Risk(s)
- The C-MACC Clean Energy Minerals Monthly Price Index fell 17% MoM in February, led lower by lithium and cobalt values as demand and substitution concerns grew due to their high prices.
- We highlight SQM 4Q22 results and its views of lithium supply and demand, along with noting EV producer activities, such as at Tesla, that show concerted efforts to secure low-cost supply.
- We discuss the production cost pockets where EV manufacturers are targeting cuts, and discuss these efforts relative to news of EV producer price cuts and their push to keep margins.
- US natural gas and USGC ethane values increased WoW relative to Brent Crude and Ex-US naphtha. However, both remain notably lower on a one- and three-month relative basis.
- We flag global inflation estimates to show low inflation in China relative to high inflation levels in the US and Europe. A non-inflationary China recovery in 2023 is not great news for chemicals.
See PDF below for all charts, tables and diagrams