Daily Chemical Reactions

Enough! The World Appears Awash With Chemical, Suggesting Some Earnings May Become Simply Red
May 23, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
LyondellBasell, Reliance, SABIC, Enterprise Products, Invista, Heartland Polymers, Dow, Braskem, Ineos, Air Products, ExxonMobil, Basic Chemicals Industries, Borealis, OMV, Yara, BASF, Linde, Chevron, Heidelberg Materials, Mitsui Chemicals, Sanyo Chemical, Albemarle, SQM, Nemaska Lithium, Codelco, Chemanol, Sipchem, Tanfac Industries, Ford, Johnson Matthey, Hystar, Mitsubishi Gas Chemical, Mitsui OSK Lines, TotalEnergies, Lanxess, PDC Energy

Daily Chemical Reaction

Enough! The World Appears Awash With Chemical, Suggesting Some Earnings May Become Simply Red

Key Points:

  • We discuss the China polypropylene price decline MTD, highlighting more production, demand concerns, and its ability to source discounted Russian crude/feedstocks – a problem for the West.
  • The severe US propylene price decline from outage-driven 1H23 highs pushed its PDH margins lower, despite weakness in domestic propane, while Asia PDH margins have moved higher MTD.
  • Ford announces multiple partners to supply it with lithium amid a push to ramp EV production and following the lithium spot market collapse relative to 2022 highs to lessen supply chain risk.
  • We discuss the Neom Green Hydrogen Company project reaching FID, displaying its planned green power sources and production chain that face more challenges than likely meet the eye.
  • We discuss the unlikely rebound in global freight rates and shift gears to flag tepid near-term views from Lowe’s on the housing and construction market and mortgage rate strength WoW.

See PDF below for all charts, tables and diagrams

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