Daily Chemical Reaction
- Global chemical sector business conditions in 2Q23 were weaker at its close than at its start – we flag more commodity and specialty producer business updates supporting our 2H23 concerns.
- We discuss estimated global commodity chemical operating rates, the OMV 2Q trading update, and why Asia and US propylene spot values have increased from YTD lows relative to NW Europe.
- NW Europe propane values have fallen but reflect support relative to Asia and the US, and we show the recent weakness in European natural gas values and other chemical feedstock shifts.
- Clean energy critical mineral investments to boost production have surged amid concerns that supply will unlikely keep pace with demand, but some markets are more strained than others.
- Our concerns with Chemical end market demand are broadly higher than with supply, and we highlight further downward pressure on global freight rates and indications of oversupply.
See PDF below for all charts, tables and diagrams