Daily Chemical Reactions

Nothing Compares 2 U – Industrial Gases & Coatings Profit Grew In 2Q, Better Positioned Than Commodities In 2H23
July 27, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Westlake, Shin-Etsu, Orbia, Formosa Plastics, Oxy, Olin, PPG, Shell, TotalEnergies, Asahi Kasei, Wacker, Celanese, Air Liquide, Fluor, DCM Shriram, Deepak Fertilisers & Petrochemicals, SCG Chemicals, Element Solutions, Stepan, Chemours, Methanex, Piedmont Lithium, New Market, Ecopol, Li-Cycle, TechnipFMC, LSB Industries, Valero Energy, Forsee Power, Coterra Energy, Chemed, Pemex, Mitsui Chemicals, Idemitsu, Tata Steel, Repsol, RPM, Lotte Chem

Daily Chemical Reaction

Nothing Compares 2 U – Industrial Gases & Coatings Profit Grew In 2Q, Better Positioned Than Commodities In 2H23

Key Points:

  • Industrial gas companies reflect more durable earnings drivers in 2Q than coatings companies that have benefited significantly from raw material cost relief, but both appear well positioned.
  • Commodity chemical companies and some non-integrated derivative producers have had the harshest 2Q earnings pullback across the chemical sector – it has worsened for some in 2H23.
  • We view polyvinyl chloride (PVC) and ammonia as relatively better poised for improvement than most commodity chemicals, such as polyethylene (PE), which likely face a harsh 2H23.
  • The Shell and TotalEnergies 2Q reports mostly met our upstream expectations. We also flag improving refinery margins during the past few weeks that will likely creep into operator views.
  • We flag low-carbon ammonia plans at LSB Industries, Air Liquide growth in decarbonization solutions, multiple associated industry reports, and varied global economic growth outlooks.

See PDF below for all charts, tables and diagrams


Client Login

Learn About Our Subscriptions and Request a Trial

to gain full access and experience our services!

Request a Free Trial

Archives