Daily Chemical Reactions

Ammonia Weakness To Change Direction: A Comedy of Likely Clean Supply Defeats, Tight Markets Ahead
June 27, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Yara, Nutrien, CF Industries, Koch Fertilizer, LSB Industries, Bayer, BASF, Corteva, Syngenta, Aramco, TotalEnergies, Linde, Wanhua, PPG, Braskem, Chemtrade, Lonza, ExxonMobil, Axens, Formosa Plastics, LyondellBasell, SABIC, Chevron Phillips Chemical, Sayona Mining, Solvay, Sika, Ragnar Metals, Novatek, Thyssenkrupp Nucera, Schnitzer, Hess Midstream, Plug Power, Denbury, Origin Materials, SCG Chemicals

Daily Chemical Reaction

Ammonia Weakness To Change Direction: A Comedy of Likely Clean Supply Defeats, Tight Markets Ahead

Key Points:

  • Global ammonia markets remain weak, but better times are on the horizon, as supply appears unlikely to keep pace with broadening existing and new demand channels in the medium term.
  • Yara held a capital markets day this week, discussing its clean ammonia capacity push in the US amid favorable incentives and flexibility in Europe to curtail production and import products.
  • Agriculture market indicators display a favorable farmer income setting amid high crop prices, a positive for absorbing farm input oversupply, and tighter markets in 2024 relative to 2023.
  • We highlight the Origin Materials CMF facility startup and numerous other industry items that range from Denbury expanding its US CCS footprint to a Plug Power 10MW electrolyzer delivery.
  • We discuss global commodity chemical indicators suggesting oversupply, the drop in Asia to US and Europe freight rates, and recent weakness in the Chinese yuan relative to the US Dollar.

See PDF below for all charts, tables and diagrams


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