Daily Chemical Reactions

I Gotta Feeling – More Global Chemical Business Updates Reduce 2H23 Expectations, More To Come
July 11, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
OMV, Shell, ExxonMobil, FMC, Evonik, Ashland, Lanxess, Glencore, Wanhua Chemical, Nanya Plastics, Mitsubishi Chemical, Nutrien, LG Chem, LyondellBasell, Nippon Paint, Targa, Aker Carbon Capture, Azelis, Bunge, Chevron, Hengli Petrochemical, ADNOC, Borouge, Borealis, Black & Veatch, Thyssenkrupp Uhde, Apical Oleochemical, Clariant, Petrobras, Mitsubishi Power, Lygos, GM, Lightning eMotors, Fisker, Sion Power, Posco, Solvay

Daily Chemical Reaction

I Gotta Feeling – More Global Chemical Business Updates Reduce 2H23 Expectations, More To Come

Key Points:

  • 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

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