Daily Chemical Reaction
- Global chemical producer outlook updates and industry indicators highlight elevated Western consumer demand headwinds and oversupplied Chinese products impacting the global market.
- China currently benefits from lower inflation and interest rates relative to Western markets, with Europe facing the challenging setting of no significant cost advantages or demand drivers.
- The potential combination of Adnoc and Covestro holds benefits beyond simple integration, as it could link a low-carbon feedstock into several markets, penalizing those without it.
- We flag recent research highlighting our regular commentary that 2023 is not meeting most estimates set with 1Q results and why more chemical sector negative profit warnings are likely.
- We highlight freight rates from China to US and Europe, showing that rates to Europe are below those to the US, and we discuss the troubling recent 10yr/2yr US yield curve inversion.
See PDF below for all charts, tables and diagrams