Daily Chemical Reactions

Chemical Product Chains In Focus – The Parts Lacking A Competitive Edge Face A Tough Global Setting
August 15, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Adnoc, Covestro, Braskem, BASF, SQM, Azure Minerals, Petrobras, Indorama Ventures, Neste, Esmark, US Steel, Jera, Oneok, Magellan Midstream Partners, Iberdrola, BP, Advanced Ionics, Shell, Yara, Li-Cycle, Anaergia, Lithium Royalty Corp., Celanese, Chemtrade Logistics, Westlake, Westwater Resources, Pearce Renewables, NET Power, First Solar, Fisker, Tesla, Berry Global, PrimeEnergy Resources, Carbon Streaming, Accelera, Lightning eMotors, Chesapeake Energy, Sunnova, Pemex, Verde Clean Fuels

Daily Chemical Reaction

Chemical Product Chains In Focus – The Parts Lacking A Competitive Edge Face A Tough Global Setting

Key Points:

  • Polymer price differences (minus freight) face compression between regions as oversupplied conditions mount – global cost curve placement is the best gauge of regional integrated profits.
  • We highlight PDH unit additions in China that will likely put downward pressure on regional propylene (& derivative) prices and further cut co-product credits for Asian ethylene producers.
  • China economic data continues to miss expectations, but its chemical capacity expansions for 2H23 and 2024 remain on track, which will cause the targeting of other markets to absorb supply.
  • Investments in technologies to make cheaper green hydrogen are rising, but awareness of the challenges facing those needing to source high-capacity-factor green power remains too low.
  • US retail sales increased in July, but consumer spending trends at Home Depot and Target vary, suggesting that some chemical end-product markets are seeing more support than others.

See PDF below for all charts, tables and diagrams

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