Sunday Thematic & Weekly Recap

It’s Time To Be Bleak: Nothing To Be Gained By Talking Up The Market
July 23, 2023
Commodities Mentioned:
Plastics, PVC, Polyethylene, Polypropylene, PU, PC, PET, Critical Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Ammonia, CCS, Batteries, Battery Materials, r-PET, Methane, Copper, Lithium
Companies Mentioned:
Shell, ExxonMobil, OMV, Dow, LyondellBasell, Chevron Phillips Chemical, Formosa Plastics, Westlake, Oxy, Shin-Etsu, Orbia, Nutrien, BASF, CF Industries, Corteva, FMC, TotalEnergies, Chemanol, Aramco, SABIC, Hyundai, Grupa Azoty, Sumitomo Chemical, Kemira, Synthomer, Linde, Johnson Matthey, Doosan Enerbility, Hy2gen, OCI, Adnoc, Borealis, Borouge, Tianqi Lithium, IMCD, Mosaic, Rainbow Rare Earths, Rio Tinto, Evonik, Baystar, Crescent Energy, TSMC, ADM, Bunge, Cargill, Asahi Kasei, MEGlobal, Covestro, Ineos, Lanxess, Air Liquide, KBR, Olin, Renascor, Mitsubishi Chemical, Siam Cement, Chemours, Honeywell, LBB Specialties, Nova Chemicals, Tata Chemicals, Wacker, Hycamite, Wabash Valley Resources, Amcor, Halliburton, Baker Hughes, Trinseo, Altus Power, X-Energy, Anaergia, Avangrid, Macquarie, J.B. Hunt, Symrise, Versalis, Koch Fertilizer, LSB Industries, Yara, Jera, D.R. Horton, Freeport-McMoRan, Clariant, Novonix, Ecovyst, Altius, Alcoa, Givaudan, Enterprise Products, Pemex, ABB, Schneider Electric, Vibrantz Technologies, Kinder Morgan, First Solar, Wanhua Chemical, Zeolyst, Amsty, Thyssenkrupp, Emerson, Denbury, Climeworks, PPG, Hexpol, Rongsheng Petrochemical, Yansab, Axalta, Chevron, Advanced Petrochemical, Albemarle, Mineral Resources, H.B. Fuller, Lonza, Mingyang Smart Energy, Indorama Ventures, SLB, Autel Energy, Valero, Matheson Tri-Gas, 1PointFive, KKR, Cheniere, Bayer, Sensient, Moog, RYAM

C-MACC Sunday Thematic & Weekly Recap 178

It’s Time To Be Bleak: Nothing To Be Gained By Talking Up The Market

  • We see no value in basic chemical companies trying to spin a positive story with 2Q earnings – things are bad for basic chemicals, and everyone needs to know that.
  • Attempts at short-term shareholder appeasement make little sense as the industry will need consolidation/rationalization to recover, and this needs gloom.
  • When companies running below 75% of capacity realize there is no quick fix, they will be open to more radical alternatives, the sooner this happens the better.  
  • We look at how discounted ethylene could be influencing the Chinese market through cheaper crude from Russia – it could be significant, and costs could be low.
  • Otherwise, we look at PVC, which is better than the rest, and why we still like ammonia.  We start discussions on how to boost hydrogen and carbon credits.

Last week we discussed 22 Chemicals and Related Products and 126 Companies.

See PDF below for all charts, tables and diagrams

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