Daily Chemical Reactions

Changes – Chemical Companies Respond To Investor & Climate Activist Pressure, Return Profiles In Flux
March 21, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
CF Industries, Incitec Pivot, Technip, Sabic, Shell, CNOOC, Standard Lithium, McDermott, Aramco, Mura Technologies, Gulf Coast Sequestration, North American Helium, Wanhua, Evonik, OCI, Lotte Fine Chemical, Navin Fluorine, LG Chem, Adani, Indorama, PureCycle, Mitsui, Saipem, Domo Chemicals, Altana, INEOS, Sempra, ExxonMobil, Eni, TotalEnergies, Air Liquide, Black & Veatch, New Fortress, Repsol, Sinofert

Daily Chemical Reaction

Changes – Chemical Companies Respond To Investor & Climate Activist Pressure, Return Profiles In Flux

Key Points:

  • 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


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