Daily Chemical Reaction
Bosa Nova: Can The Middle East (and Wall Street) Slow Dance with The Brazilians?
- A very complicated deal may be under way for control of Braskem, with ADNOC a less obvious buyer than its affiliates/partners – will synergies outside Brazil offset political risk in Brazil.
- Crude oil and international gas prices continue to fall in absolute terms and relative to US natural gas – this is incrementally bad for US chemical producers but far from problematic yet.
- Origin is highlighting a strategy partnership a day before reporting earnings – unlikely a good sign, but this technology, even if it has teething problems could still be a game changer.
- Separately we look at carbon values – a topic for this week’ ESG and Climate report, noting that a lack of carbon pricing or credits outside the US, Canada and Europe is a growing issue.
- Otherwise, we look at whether downstream consolidation/rationalization could drive further inventory corrections in the US, and question the inflationary impact of machinery demand.
See PDF below for all charts, tables and diagrams