Daily Chemical Reactions

The Pest Of The West – US & Europe Inflation To Likely Outpace China Again In 2023 – Not Good For Chemicals
May 11, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Oxy, Westlake, Shin-Etsu, Formosa Plastics, Dow, X-Energy, Zhejiang Petrochemical, Aramco, Nutrien, CF Industries, LSB Industries, Brenntag, Univar, Vopak, Messer, BASF, Petro Rabigh, IFF, Bayer, Adnoc, Apollo, Braskem, Indorama, Daicel, BP, Aarti Industries, Excelerate Energy, Orica, Nippon Sanso, Fuso Chemical, Lotte Chemical, Kao Chemicals, Origin Materials, PureCycle, Li-Cycle, Enbridge, Petronas

Daily Chemical Reaction

The Pest Of The West – US & Europe Inflation To Likely Outpace China Again In 2023 – Not Good For Chemicals

Key Points:

  • The 2021/2022 price inflation surge in the US and Europe did not occur in China – it appears well poised to benefit from much lower relative inflation for the third consecutive year.
  • China has enough spare capacity/labor to support its economic growth without price hikes, assuming its energy markets are not inflationary and Russian imports are likely curbing this risk.
  • We highlight the Oxy 1Q23 report, looking at its oil-and-gas business, chemicals, and clean energy and carbon capture efforts, and we discuss Dow/X-Energy news at Dow’s Seadrift, TX site.
  • The Nutrien 1Q23 report and earnings call highlight weak current conditions but a still positive farmer income setting favoring a tighter fertilizer market setting in 2H23 relative to 1H23.
  •  We note the recent back-and-forth views of Aramco’s blue hydrogen prospects, recent US CPI and PPI trends, and other energy and economic data supporting our global supply/demand view.

See PDF below for all charts, tables and diagrams


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