Daily Chemical Reactions

Global Demand Upturn Needed To Absorb Oversupply, Elevate Production In Low-Cost Areas – Unlikely In 2H23
July 18, 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, TotalEnergies, BASF, Chemanol, Aramco, SABIC, Hyundai, Grupa Azoty, Sumitomo Chemical, Kemira, Synthomer, Linde, Johnson Matthey, Doosan Enerbility, Hy2gen, OCI, OMV, Adnoc, Borealis, Borouge, Tianqi Lithium, IMCD, Mosaic, Rainbow Rare Earths, Rio Tinto, Evonik, Baystar, Crescent Energy, TSMC, ADM, Bunge, Nutrien, Cargill, Corteva, Asahi Kasei, MEGlobal

Daily Chemical Reaction

Global Demand Upturn Needed To Absorb Oversupply, Elevate Production In Low-Cost Areas – Unlikely In 2H23

Key Points:

  • US industrial production declined in June for the second consecutive month, reflecting the first annual decrease in 28 months and portending unfavorably for near-term chemical profitability.
  • Global chemical market oversupply indications remain elevated in all major regions, and we discuss the drop in Singapore chemical exports and falling imports at the Antwerp-Bruges port.
  • North American petrochemical producers remain well positioned due to their still sizable cost advantage, but it is not without challenges, especially considering rising domestic competition.
  • The ability to source cheap, high-capacity-factor clean energy is critical to the success of green hydrogen developments, and it is much more difficult to access than many headlines suggest.
  • A common theme in our research is that global demand is riskier than chemical producers and broader industry abilities to meet it in 2023/24 – numerous sector updates support our view.

See PDF below for all charts, tables and diagrams


Client Login

Learn About Our Subscriptions and Request a Trial

Contact us to gain full access and experience our services!

Request a Free Trial

Archives