Daily Chemical Reactions

Methanol Glory: US Natural Gas Put Local Producers In An Enviable Position – BASF Could Use That Help
April 27, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
BASF, Methanex, Syngenta, Corteva, Linde, Air Liquide, Air Products, Proman, LyondellBasell, Celanese, Mitsui, OCI, Petronas, Orbia, Shin-Etsu, Westlake, Formosa Plastics, Olin, LG Chem, INEOS, Nouryon, Shell, Asahi Kasei, Helmerich & Payne, Chemed, Element Solutions, Wacker, DuPont, PureCycle, ExxonMobil, Lanxess, Solvay, TotalEnergies, Chevron, Marathon Petroleum, TC Energy, Repsol

Daily Chemical Reaction

Methanol Glory: US Natural Gas Put Local Producers In An Enviable Position – BASF Could Use That Help

Key Points:

  • The recent steepening of the global chemical production cost curve favors North America, and industry efforts to decarbonize products rather than significantly expand favor tighter markets.
  • Valero refinery profits surged in 1Q, and domestic refiners should benefit from LyondellBasell closing its USGC refinery later this year, though we doubt it is a good move for LYB stakeholders.
  • BASF highlights estimates that global chemical production was unchanged YoY in 1Q, despite added capacity, suggesting the ability to meet demand is ample in most chemical product chains.
  • We view industrial gas companies as significant beneficiaries of the energy transition, discuss Linde and Air Liquide progress toward their decarbonization goals, and show a few sector trends.
  • Global macroeconomic growth headwinds remain stiff amid high-interest rates, less friendly markets for companies raising capital to make investments, and weakness in “real” hourly wages.

See PDF below for all charts, tables and diagrams

Client Login

Learn About Our Subscriptions and Request a Trial

Contact us to gain full access and experience our services!

Request a Free Trial