Daily Chemical Reactions

Going Underground: Will CCS Be More Important To Chemicals Than Recycling – Regardless of Growth  
April 4, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
PPG, Linde, ExxonMobil, Nouryon, Synthomer, Givaudan, Amyris, Clariant, Grupa Azoty, Ineos, Tianqi, Ganfeng Lithium, Venator, Teijin, Lanxess, TotalEnergies, Posco, Asahi Kasei, Epsilyte, OMV, Aker Carbon Capture, Borealis, Alcoa, Lummus, Baker Hughes, QatarEnergy, Osaka Gas, Mitsubishi Heavy Industries, Valero, Cleveland-Cliffs, Tesla, Rivian, Origin Materials, Donaldson

Daily Chemical Reaction

Going Underground: Will CCS Be More Important To Chemicals Than Recycling – Regardless of Growth

Key Points:

  • Global chemical producers face the challenge of navigating a movement to CO2-free materials despite low profitability – CO2 capture will compete with substitutes, but both have roles to play.
  • 4Q22 cost relief for some non-integrated chemical producers turned to sequential headwinds in 1Q23, but lagging sales lifted margins above estimates. Margin upside is less likely in 2Q23.
  • We highlight the PPG 1Q23 business update, discuss movements in propylene and PDH profit by region, and shift markets to issue a few initial views on recent US crop price developments.
  • We flag IEA views on CCUS that demonstrate that ambitions are high, but progress is slow, discuss an industry recycling report, and note TX legislator pushback against wind and solar.
  • We flag economic growth projections for Asia, discuss the China PMI posting, and show that US active truck utilization has collapsed in 2023, providing more indications of economic troubles.

See PDF below for all charts, tables and diagrams

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