Daily Chemical Reactions

Love The Way You Lie – Do 1Q23 Chemical Sector Business Trends Give A Good View of 2Q? We Doubt It!
April 6, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Shell, Dow, LyondellBasell, ExxonMobil, Formosa Plastics, Sherwin-Williams, RPM, PPG, Neste, Brooge Energy, Borouge, Baker Hughes, QatarEnergy, InterPipeline, Agilyx, Ineos Styrolution, PKN Orlen, Standard Industries, W.R. Grace, Versalis, Valero, AGCO, Bosch, BASF, IMCD, Evonik, Toyobo, Mitsubishi Corp., LG Energy Solutions, Tesla, Graham Corp., ConAgra, Walmart, Ford, Stellantis, Petrobras, Dominion Energy

Daily Chemical Reaction

Love The Way You Lie – Do 1Q23 Chemical Sector Business Trends Give A Good View of 2Q? We Doubt It!

Key Points:

  • North American petrochemical margins have improved YTD, but volume trends suggest most producers are still at sub-optimal rates despite the global cost curve shifting further in its favor.
  • We discuss business updates from Shell and coatings producers, PPG and RPM, suggesting sequential profit improvement in 1Q but keeping our near-to-medium-term concerns high.
  • North American chemical rail traffic remains depressed YTD relative to 2022, with US chemical volume trends YTD being the weakest among the other significant sectors gauged by the AAR.
  • We highlight that many companies have 2050 zero-emission targets, but we question whether they have “real” plans to get there or are simply hoping the pieces firm up to support their view.
  • We discuss retailer reports, including the Costco business update, and highlight trends in the value of the US Dollar relative to the Chinese Yuan and other major foreign currencies YTD.

See PDF below for all charts, tables and diagrams

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