Daily Chemical Reactions

Smokestack Frightening? Industrial Production Remains Cutback Globally; Ugly Trends Develop Before Halloween
August 16, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Nutrien, CF Industries, LSB Industries, Yara, Livent, Allkem, SQM, Albemarle, Ganfeng Lithium, Lithium Americas, Nippon Fine Chemical, Eastman, Phillips 66, Shell, Unigel, Petrobras, Energy Transfer, Crestwood Equity Partners, Kinetik, Chemtrade, Celanese, Shikoku Kasei, Sage Potash, Mitsui Chemicals, Woodside Energy, Intel, Home Depot, Tesla, Ford, BYD, Occidental, 1PointFive, Hess Midstream, Strategic Resources, Cipher Neutron, Verde, VinFast, Tencent, TJX Companies

Daily Chemical Reaction

Smokestack Frightening? Industrial Production Remains Cutback Globally; Ugly Trends Develop Before Halloween

Key Points:

  • US industrial production remained lower YoY in July due to oversupply overshadowing its energy-advantaged cost position – Europe and Asia run rates are lower for different reasons.
  • USGC ethane prices have fallen relative to US natural gas, a positive trend for domestic ethylene producers as Ex-US naphtha values reflect strength relative to Brent Crude prices.
  • We flag the sizable ammonia price drop YoY, noting low prices limiting capacity expansions, despite ammonia emerging as an essential energy carrier in the global decarbonization tool kit.
  • We also highlight the weakness in China lithium prices amid indications of slowing demand that will impact most European and North American lithium markets and producer profits.
  • Global freight rate indicators suggest limited supply issues beyond low water in the Panama Canal, and we flag mixed demand indicators in the US relative to broadly weak trends in China.

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