Daily Chemical Reactions

China’s Acting Single (Everyone Else Is Drinking Double) – Oversupplied Markets Benefit Consumers, Hurt Industry
August 10, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Braskem, Evonik, Kuraray, Nippon Paint, Orion S.A., Daikin, Toda Kogyo, Enbridge, Borealis, Brenntag, Huntsman, BASF, FREYR Battery, ICL, Crescent Energy, Origin Materials, NuScale, New Tucson Electric Power, Siemens, Ballard, BYD, Phillips 66, ADM, PTT Global Chemical, Yara, CF Industries, Nutrien, Opal Fuels, ExxonMobil, Largo, Lotte Chemical, Gunvor, GeoPark, Excelerate Energy, NGL Energy Partners, GreenFirst, Shell, Tetra Tech

Daily Chemical Reaction

China’s Acting Single (Everyone Else Is Drinking Double) – Oversupplied Markets Benefit Consumers, Hurt Industry

Key Points:

  • China’s self-sufficiency push has driven its significant capacity growth in petrochemicals. While demand will eventually catch up with supply, this move is now a key driver of global oversupply.
  • Commodity chemical markets will likely stay oversupplied through 2024 amid still increasing global capacity, led by China, with energy price increases being the major risk to all.
  • We discuss the recent strength in European natural gas, which is a plus for tightening some markets, such as ammonia, and chemical market views from the Braskem 2Q23 earnings report.
  • We comment on FREYR Battery redomiciling to the US from Europe and its positive view of the IRA in its 2Q report, the Braskem green polymer push, and Phillips 66 and ADM biofuel news.
  • North American rail traffic continues to illustrate the cutback of domestic chemical production, despite its attractive cost position, and we provide a few thoughts on global tire market trends.

See PDF below for all charts, tables and diagrams


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