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


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