Daily Chemical Reaction
Pride Before the Fall – Lithium Price Collapse and China Demand Concerns Oppose Many Early-Year Views
- The C-MACC Clean Energy Minerals Monthly Price Index fell ~18% MoM in March, following a ~17% decline in February, led lower by falling lithium values amid loosening market conditions.
- We highlight a few global auto market developments, including movements to EVs relative to ICE vehicles, and provide a view of polymer markets with the most exposure to the auto industry.
- Chinese demand not living up to supply expectations is a growing concern, and we flag the recent declines in China lithium prices and discuss its shrinking need for polyethylene imports.
- We provide our views on the ExxonMobil 2023 low carbon solutions spotlight, and we flag the demand picture for hydrogen today that will broaden as global carbon reduction efforts advance.
- We highlight recent movements in the Brent Crude price relative to WTI, and US, Europe, and Asia natural gas, and also display movements in refinery margins relative to US gasoline prices.
See PDF below for all charts, tables and diagrams