Daily Chemical Reaction
Hitching Up – North American Methanol Producer Benefits To Grow Beyond Regional Cost Advantages
- We hold a long-term constructive view of North American methanol. Like ammonia, regional cost advantages will enable exports as global demand sources broaden faster than supply.
- US natural gas prices remain under pressure while support signals in oil markets emerge mid-week despite demand concerns. This setting is a plus for North American chemical producers
- We highlight continued weakness in Chinese spot lithium prices, which are considerably lower than four months ago, and the relative movements in US, Asia, and Europe butadiene spot prices.
- We flag the ability to source waste as a limitation to the growth in advanced recycling, discuss blue hydrogen government funding skepticism, and generally highlight the geothermal market.
- An era of “free money” is over, although Apple will still give you credit. Significant inflation that preceded higher interest rates will keep global economic growth in check for some time.
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