Daily Chemical Reactions

Are We There Yet? Some Global Chemical Prices Are Likely Near A Bottom, But Not A Near-Term Rebound
July 26, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Methanex, LyondellBasell, OCI, SABIC, Petronas, Mitsui, Celanese, Albemarle, Ashland, Asian Paints, Sherwin-Williams, Sasol, Enterprise Products, Allkem, Röhm, Equinor, Old Dominion, Owens Corning, Rio Tinto, Sumitomo, Taiyo Oil, Repsol, WM, Range Resources, Ineos, TotalEnergies, Evonik, Toshiba Materials, Silgan, Stellantis, GM, Bayer, Proctor & Gamble, EDP, Crane Company, Boeing, GE, Coca-Cola

Daily Chemical Reaction

Are We There Yet? Some Global Chemical Prices Are Likely Near A Bottom, But Not A Near-Term Rebound

Key Points:

  • Global methanol prices have fallen considerably in 2023, pinching margins and adding support to bearish views – Asia methanol and derivative trends may now be signaling a market bottom.
  • We discuss Methanex global methanol contract price announcements relative to spot market trends and highlight US methanol production margins compared to China to frame the market.
  • USGC ethane values fell from recent highs this week, which we link to a pullback in demand following the collapse in ethylene production margins. We also discuss ERCOT power trends.
  • We highlight WM 2Q23 results and its push into renewable energy and recycling downstream from its waste business, which will likely create a formidable competitor to non-integrated peers.
  • India remains a bright spot in the global economy, as noted by Asian Paints in its business update, and it will benefit from oversupplied global chemical markets and cheap Russian crude.

See PDF below for all charts, tables and diagrams

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