Sunday Thematic & Weekly Recap

Ammonia – A Huge Opportunity – Or Value Trap? Is Methanol Better?
May 7, 2023
Commodities Mentioned:
Plastics, Recycled Plastics, Propylene, Polyethylene, Polypropylene, Polyurethane, Polycarbonate, PVC, PET, Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas, NGL, Crude, Naphtha, Ammonia, Autos/EVs, Electric Power, Renewable Fuels, Fertilizer, Batteries, Methanol, Water
Companies Mentioned:
Olin, Westlake, Oxy, Shin-Etsu, Formosa Plastics, Nutrien, BASF, Corteva, CF Industries, LSB Industries, DuPont, Enterprise Products, Petronas, LyondellBasell, bp, Hexpol, Chevron, TotalEnergies, ExxonMobil, Citroniq, MOL, Air Liquide, Cheniere, Marathon Petroleum, FMC, Elkem, Yansab, W.R. Grace, PetroChina, Ecolab, Sabic, Borealis, Wacker, Syngenta, DSM, Meghmani Organics, Ineos, EcoPro, Hanwha Solutions, Avantor, Lotte Chemical, Albemarle, Livent, Freeport-McMoRan, Ashland, Avient, Axalta, Bunge, Capstone Copper, DCM Shriram, IMCD, Johnson Matthey, Messer, Polynt, Posco, Shell, Crescent Energy, Energy Transfer, Exelon, Murphy Oil, ONEOK, Dow, Ingevity, TechnipFMC, ProPetro, Phillips 66, Neste, FulcrumAir, UFP Industries, Builders FirstSource, Westlake Chemical, Pertamina, Tellurian, Ford, GM, ADNOC, Eastman, Origin Materials, Sealed Air, Unilever, P&G, S.C. Johnson, Linde, Sunpower, Denbury, Evonik, Mosaic, Henkel, Sinochem, Solvay, OCI, Innospec, , CP Chemical, Kumho Petrochemical, New Fortress, Vitol, Trafigura, Merceria, Gunvor, Sempra, North American Helium, Altus Power, Ecovyst, Odfjell, Maersk, Tata Chemicals, Nova Chemicals, Huntsman, AdvanSix, Trinseo, Clariant, Koppers, Arkema, Fortum, Equitrans, Evergy, Orion Engineered Carbons, Enbridge, Coterra Energy, Alliant Energy, Pembina Pipeline, The Azek Company, OQ Chemicals, Luxi Chemical, Kemira, LCI Industries, Fluor, Tutor Perini, Technip Energies, GE, Apple

C-MACC Sunday Thematic & Weekly Recap 167

Ammonia – A Huge Opportunity – Or Value Trap? Is Methanol Better?

  • Ammonia has seen a negative pricing swing this year, adding uncertainty to investment economics and raising questions about the timing of demand growth.
  • Methanol may play a large transition role in shipping fuel, but the challenges and costs of decarbonizing are no different than ammonia – this may not matter.
  • We look again at the surplus of basic chemical feedstocks, which will only worsen. Chemical market conditions do not support investment, but feedstocks do.   
  • Metals pricing has taken a beating, especially lithium, but this is a commodity sector where demand is growing and some capacity less so – focus on copper/nickel
  • Otherwise, we look at trouble with ESG investing in Europe, inventories (which still look too high), inflation, and other economic indicators – we remain concerned

Last week we discussed 24 Chemicals and Related Products and 131 Companies.

See PDF below for all charts, tables and diagrams

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