Daily Chemical Reaction
- Spot polypropylene price spreads between major global regions have returned to pre-COVID levels, but prices (and profits) are lower, putting most 2023 outlooks set with 1Q results at risk.
- 2Q23 commodity chemical profit conditions in most global regions have worsened, on average, since the quarter start, as global cost curves have flattened, suggesting an oversupplied 3Q23.
- We discuss Ineos movement of US LNG to support its global chemical production and why the lengthening of corporate value chains combining energy and chemicals will remain a global trend.
- We consider electricity grid transmission and interconnection equipment and related permit delays as significant clean energy growth constraints and discuss IEA net zero target feasibility.
- We discuss recent movements in the US Dollar relative to major foreign currencies along with US export/trade gap shifts, and we flag housing data showing price declines despite low supply.
See PDF below for all charts, tables and diagrams