Daily Chemical Reactions

Chain Reactions – Chemical Producers Put Projects On Hold, Oil & Gas Producers Keep Pushing Downstream
August 8, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Celanese, Aramco, Cabot Corporation, IFF, Covestro, Deepak Fertilisers & Petrochemicals, SABIC, Sherwin-Williams, Kumho Petrochemical, Lanxess, Lotte Chemical, Meghmani Finechem, Mitsubishi Gas Chemical, Rio Tinto, Nippon Shokubai, ExxonMobil, Tata Chemicals, Trinseo, LyondellBasell, AdvanSix, Sempra, ConocoPhillips, TotalEnergies, Tellurian, Phillips 66, EOG, Woodside Energy, Reliance Industries, Sumitomo, Neste, Glencore, Tigo Energy, Energy Vault, New Fortress, Siemens Energy, Williams, UPS, Toyobo

Daily Chemical Reaction

Chain Reactions – Chemical Producers Put Projects On Hold, Oil & Gas Producers Keep Pushing Downstream

Key Points:

  • 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

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