Daily Chemical Reactions

Whiskey River – Recent Petrochemical Margin Shifts To Spur Global Production, Hangover Likely Ahead
May 17, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Indian Oil, Bharat Petroleum, Petrobras, Technip Energies, Samsung Engineering, OMV, Westlake, Mitsubishi Chemical, Orbia, Arkema, Syngenta, FMC, Bunge, Nutrien, Idemitsu, Kaneka, 3M, Svante, Adnoc, PKN Orlen, Vital Energy, Venture Global, Cheniere, Wanhua, Sonatrach, Lithium Americas, Birla Carbon, Lowercarbon Capital, Fujifilm, Azelis, DSM, Henkel, Vanguard Renewables, EVgo, Stellantis, Target, T.J. Maxx

Daily Chemical Reaction

Whiskey River – Recent Petrochemical Margin Shifts To Spur Global Production, Hangover Likely Ahead

Key Points:

  • Global polymer prices fell WoW, with US and European values falling more on average than Asia – we discuss this trend alongside Asia production costs and rising India polymer imports.
  • NW European and Asia natural gas prices have fallen considerably relative to US levels in 1H23, and the recent drop in US shale/fracking activity suggests US market price support near term.
  • We highlight the record level of India plastic imports, compare US Ethylene and Chlor-alkali production costs to NW Europe, and flag QoQ growth in NW Europe chemical production.
  • We discuss the Bunge and Nutrien partnership in agriculture supply-chain sustainability, GHG emissions from the agriculture sector relative to other emitters, and a recent UN plastics report.
  • Target reports consumer demand headwinds, while T.J. Maxx has a better view, which suggests US retail spending headwinds in some areas amid a shift toward discounted products.

See PDF below for all charts, tables and diagrams


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