Sunday Thematic & Weekly Recap

Investor Flight To Safety Unlikely To Reverse Course: Oil Looks Good!
April 23, 2023
Commodities Mentioned:
Plastics, PVC, Polyethylene, Polypropylene, PU, PC, PET, Critical Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, EVs, SAF, Renewable Fuels, LNG, Ammonia, Fertilizer, MTBE, Fuel Cells
Companies Mentioned:
Nutrien, CF Industries, LSB Industries, Albemarle, Livent, SQM, Lithium Americas, OMV, PPG, Evonik, Siemens, ExxonMobil, Onyx Power, Aramco, Petronas Chemicals, Sika, DSM, Firmenich, Lenzing, Zeta Energy, Saudi Kayan, Hempel, Sipchem, Wood Group, Fluor, Oriental Energy, Phillips Carbon Black, Cepsa, Henkel, Cabot, DIC, LG Chem, TotalEnergies, Shell, Arafura Resources, Siemens Gamesa, Equinor, Versalis, Chevron, Cummins, Walmart, Borouge, Borealis, Pertamina, AkzoNobel, Sherwin-Williams, Wanhua, Dow, LyondellBasell, Huntsman, BASF, Covestro, Cemvita, Barentz, Baker Hughes, Air Liquide, Linde, HydrogenPro, Andritz, Maire Tecnimont, Clariant, Indorama, Johnson Matthey, Nouryon, Tricon Energy, Solvay, GKN Aerospace, Patterson-UTI, Origin Materials, Chemours, TC Energy, Encina, MEGlobal, Equate, Tesla, Lucid, Rivian, Ferrari, Neste, EQT, ConocoPhillips, NextDecade, Ganfeng Lithium, Celanese, Mitsui, Orion Engineered Carbons, Rio Tinto, Sunnova, BP, Keppel, Kinder Morgan, PKN Orlen, Ebb Carbon, Mitsubishi, Calpine, Puracy, Toyo Engineering, Amcor, Alcoa, Fluxys, Technip Energies, Berry Plastics, Sinopec, Eastman, SLB, Bharat Petroleum, Tianqi, Hilltop Holdings, IMCD, Lummus, Freeport-McMoran, LEGO, CSX, Union Pacific, Deloitte, Indorama Ventures, Procter & Gamble, Knight-Swift Transportation, Idemitsu, Ford, Arena Minerals

C-MACC Sunday Thematic & Weekly Recap 165

Investor Flight To Safety Unlikely To Reverse Course: Oil Looks Good!

  • The last three years have taught us that understanding macro and commodity markets enables better investment ideas than company financials (in most cases).  
  • Performance YTD for global material equities have been mixed, with fertilizer & lithium stocks lower with commodity prices and industrial gases offering safety.
  • Commodity chemicals started the year well, but the run may now be over as fundamentals look weak, despite US cost advantages, which may have peaked. 
  • Energy transition is out of favor, primarily because of higher borrowing costs and a change in risk appetite following some major disappointments – especially EVs.
  • As we look at fundamentals, we drift back to oil and, more broadly, fossil fuel stocks as we expect engineered tightness and a continuation of strong cash flows.

Last week we discussed 22 Chemicals and Related Products and 121 Companies.

See PDF below for all charts, tables and diagrams

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