Daily Chemical Reaction
- Expectations for a chemical market advance later this year continue to increase. Even with demand growth, global oversupply in many products will likely keep pressure on earnings.
- 1Q23 results for chemicals are better because of lower costs rather than robust markets, and expectations for operating rates in 2023 are low even in cost-advantaged regions like the US.
- Energy companies are posting lower results based on lower commodity prices, but earnings are high and refining margins strong, suggesting that LyondellBasell should rethink its closure.
- Given the very high capital costs, do the economics of some of the molecular recycling initiatives make commercial sense? We also discuss Neste’s strong renewable fuels business.
- Durable goods data is inflated by aircraft and auto demand, while other components are weaker. Autos may have demand challenges later in the year – aircraft demand should stay high.
See PDF below for all charts, tables and diagrams