Daily Chemical Reactions

Home Sweet Home – Sellers Increasingly Stay Put, Creating Shortages, Spurring New Home Development
July 7, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Shell, ExxonMobil, Clariant, Lanxess, Ashland, H.B. Fuller, Chandra Asri, K+S, Cabot, Westlake, Shin-Etsu, Oxy, Orbia, Formosa Plastics, Nutrien, BASF, Corteva, FMC, Aker Carbon Capture, Richmond Minerals, Sinochem, Pirelli, SQM, LG Energy Solutions, First Solar, Vestas, Orsted, Ineos, Petronas, Wood, Idemitsu, Siemens Gamesa, Pattern Energy, DKSH, Trollvind, AEG, Samsung

Daily Chemical Reaction

Home Sweet Home – Sellers Increasingly Stay Put, Creating Shortages, Spurring New Home Development

Key Points:

  • Building & construction product producers stand to benefit if the shortage of houses on the market spurs new home development, despite higher interest rates/lower buyer affordability.
  • The US polyvinyl chloride (PVC) market would benefit from expanding new home construction, given its sizable ties to this market, cost advantage, and favorable regional price developments.
  • Shell and ExxonMobil give 2Q business updates that support our commodity chemical market views, though we note that business conditions were worse at the close of 2Q than at the start.
  • Clariant adds itself to a growing list of global intermediate and specialty chemical companies reducing financial guidance for 2023, citing weaker-than-expected business conditions since 1Q.
  • Crop prices were notably volatile this week as planted acreage estimates competed with low crop conditions – we maintain a generally constructive view on farmer incomes in 2023/24.

See PDF below for all charts, tables and diagrams


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