Daily Chemical Reactions

You’ve Got The Love – US Chemical Margins Grow As Its Feedstock Values Fall, Energy Sector Awareness Rises
March 30, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Enterprise Products, Dow, Chevron Phillips Chemical, Aramco, ExxonMobil, CNOOC, Shell, Cheniere, Total, Altus Power, Enviva, Encina, Shaw Industries, X-Energy Partners, Wacker, DC Energy, Oberon Fuels, Kraton, Sayona Mining, Piedmont Lithium, Pilbara Minerals, Grupa Azoty, LG Chem, Evonik, Highfield Resources, BAE Systems, iSun, EVgo, TSMC, Li-Cycle, Clean Harbors, Stolt-Nielsen, H.B. Fuller, Fortum, Cargill, Ford, Tesla

Daily Chemical Reaction

You’ve Got The Love – US Chemical Margins Grow As Its Feedstock Values Fall, Energy Sector Awareness Rises

Key Points:

  • Strength in North American chemical production margins due to falling feedstock costs relative to those abroad is boosting energy sector awareness of its downstream value chain benefits.
  • US natural gas fell below US$2/mmbtu this week, while crude oil values reflect more support, pushing the oil-to-gas ratio to multi-year highs. This feedstock trend is positive for US chemicals.
  • We show the movement in US ethylene cracker economics based on ethane feedstock and PDH margins relative to those abroad to display the sizable domestic feedstock cost advantage.
  • We discuss sustainability and ESG trends related to consumer product demand, IRENA power market outlooks, and the Li-Cycle business update and views of European and US markets.
  • US chemical rail traffic is depressed YTD relative to other areas of North America, German manufacturer supply chain health is rising, and global plastic per-capita use has room to grow.

See PDF below for all charts, tables and diagrams


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