Daily Chemical Reactions

Back To December? – Commodity Chemicals Saw Prices Rise, Costs Fall In 1Q; Upcoming Supply Return To Cause Bad Blood
April 21, 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, Shell, OMV, Covestro, BASF, Eastman, Chevron, ExxonMobil, CF Industries, SLB, BP, Bharat Petroleum, Albemarle, SQM, Livent, Tianqi, Ganfeng Lithium, Hilltop Holdings, IMCD, Evonik, Aramco, Lummus, Lithium Americas, Freeport-McMoran, Alcoa, LEGO, CSX, Union Pacific, Deloitte, Indorama Ventures, Procter & Gamble, Knight-Swift Transportation, Idemitsu, EQT, Ford, Arena Minerals

Daily Chemical Reaction

Back To December? – Commodity Chemicals Saw Prices Rise, Costs Fall In 1Q; Upcoming Supply Return To Cause Bad Blood

Key Points:

  • Falling production costs and higher prices favored the US commodity chemical sector in 1Q, beating most estimates – we see more potential to disappoint than further surprise in 2Q23.
  • Significant government incentives keep many domestic clean ammonia projects in motion, despite the recent price collapse, as the long-term demand profile for ammonia is compelling.
  • We discuss lithium and copper markets and 1Q23 producer updates, noting both commodities will benefit from rising demand from the energy transition and how they face different risks.
  • We discuss capital reinvestment expectations for the oil and gas, utilities, and mining sectors during the next two years, noting significant differences in how energy transition impacts them.
  • We highlight Union Pacific and CSX 1Q23 results, highlighting weakness in chemical and fertilizer volume supported by AAR data, and note still stiff headwinds facing global consumers.

See PDF below for all charts, tables and diagrams


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