Daily Chemical Reactions

Together We’re Better – Chemical Producers With Advantaged Energy Integration To Rule The Roost
March 8, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Chevron Phillips Chemical, QatarEnergy, Dow, LyondellBasell, Westlake, Oxy, ExxonMobil, Nova Chemicals, Kuwait Petroleum Corp., Air Products, Black & Veatch, Brenntag, Alpek, Ag Growth International, Elementis, Ineos, Equinor, Baker Hughes, Eni, OQ Chemicals, Petrobras, EDF, GE, Perma-Pipe, Givaudan, Symrise, DSM, Henkel, BP, Rivian, OMV, Volkswagen, Rondo Energy, TotalEnergies, Fisker, New Hope, Walmart

Daily Chemical Reaction

Together We’re Better – Chemical Producers With Advantaged Energy Integration To Rule The Roost

Key Points:

  • The North American ethylene advantage relative to Asia is significant and likely to remain high as energy and chemical producers integrate in this market – a trend we see as likely inevitable.
  • The oil majors and NOCs narrative at CERA highlights one we have been supported for a few years now – the focus should not be to eliminate fossil fuels, it should be on cutting emissions.
  • We highlight movements in US, Europe, and Asia ethylene production margins and discuss why China ethylene demand growth as a percentage of global demand is less than in other chains.
  • We discuss the EIA short-term energy outlook as it relates to implied petrochemical cost curve movements, and we also illustrate how the EU’s ban on diesel is shifting global trade patterns.
  • The US PMI reflects contraction in February, while the China PMI reflects strength. Most are relying on China as the global growth engine to lift all boats in 2023, a view far from risk free.

See PDF below for all charts, tables and diagrams

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