Daily Chemical Reaction
Changes – Chemical Companies Respond To Investor & Climate Activist Pressure, Return Profiles In Flux
- Global chemical feedstock price shifts and a push toward net zero have shifted many business plans drastically during the past 24 months, with some carrying more return risk than others.
- The global chemical feedstock market significantly favors North American producers relative to those in Europe and Asia, given its cheaper natural gas/NGLs and wide oil-to-gas ratio.
- LyondellBasell provided polyolefin growth assumptions through 2030 and gave O&P business guidance for 2027 at its recent investor day – we comment on global supply and demand trends.
- We flag LyondellBasell, Dow, and BASF efforts to cut carbon emissions and boost product circularity while being focused on growing returns – we compare and contrast these initiatives.
- Global container freight rates on average have returned to 2017-2020 average levels, with the major outlier being elevated Europe to US rates. Dow reiterates its 1Q23 macro outlook.
See PDF below for all charts, tables and diagrams