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