Daily Chemical Reaction
Chain Reactions – Chemical Producers Put Projects On Hold, Oil & Gas Producers Keep Pushing Downstream
- Oversupplied chemical intermediate/derivative markets limit regional cost advantages and are putting some growth projects on hold, awaiting global market improvement unlikely until 2H24.
- We discuss the North American methanol production advantage and the benefits of higher Asia prices. However, the weakness in derivative markets, such as acetic acid, limits this benefit.
- Aramco 1H23 results highlight its continued push to boost its downstream products business to extend its value chains and lift crude placement security – a rising oil and gas industry theme.
- The surge in renewable energy projects has hit some speed bumps, as shown by wind turbine issues at Siemens Gamesa, and many green power developments could face significant delays.
- China’s import and export statistics for July fell below expectations, and we flag other industry data showing chemical product supply has lessened as an issue globally – demand is the concern.
See PDF below for all charts, tables and diagrams