Daily Chemical Reactions

Mineral Index Drops, Dow Revenue Cut: Demand Headwinds & Manufacturer Challenges Persist
June 2, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Dow, ExxonMobil, BP, Honeywell, Albemarle, Codelco, SQM, Chemours, Corteva, DuPont, Carbios, Indorama Ventures, Sumitomo, Huntsman, Celanese, BASF, Rio Tinto, TotalEnergies, Cepsa, Air Liquide, Shell, LyondellBasell, Technip Energies, Mitsubishi Electric, Orsted, PureCycle, Posco, Toray, Paragon Films, SMBC, Polymer Resources, Autel Energies, Sinopec, Freeport McMoRan, Umicore, Glencore, Ganfeng Lithium, Livent, Azelis

Daily Chemical Reaction

Mineral Index Drops, Dow Revenue Cut: Demand Headwinds & Manufacturer Challenges Persist

Key Points:

  • The C-MACC Clean Energy Minerals Monthly Price Index fell ~6% MoM in May to reflect a 28% lower YTD level, with components beyond lithium leading the index lower amid loosening supply.
  • Dow cuts its 2Q23 revenue view below Street expectations, and we discuss other market news supporting our view that global demand headwinds are much stiffer than those facing supply.
  • We discuss ExxonMobil’s view of increasing shale output through technological advances and flag shifts in global petrochemical feedstock costs WoW supporting our chemical supply views.
  • Expensive polyester recycling faces challenges, paper packaging with plastic barriers poses a recycling challenge, and electric furnaces for ethylene production face power and cost challenges.
  • US job growth is strong in services but weak in manufacturing, hampered in some areas by permitting and infrastructure challenges. US reliance on imports may increase as a result.

See PDF below for all charts, tables and diagrams

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