Daily Chemical Reactions

Winds of Change – Tailwinds To Push Methanol (And Ammonia) Markets; Offshore Wind Needs More Than Wind
August 30, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Methanex, Petronas, Proman, OCI, SABIC, Celanese, Neste, LyondellBasell, Braskem, SCG Chemicals, Mosaic, Bayer, RWE, Orsted, Plug Power, U.S. Steel, Equate, PhosAgro, Mitsui Chemicals, Oriental Energy, Sibur, BP, POSCO, EnBW, LG Chem, Pemex, Rio Tinto, Best Buy, Permian Resources, Earthstone, Equinor, Technip Energies, Euclid Chemical, Regal Chemical Company, Avantium, Avangrid, PetroChina, Sinopec, Williams

Daily Chemical Reaction

Winds of Change – Tailwinds To Push Methanol (And Ammonia) Markets; Offshore Wind Needs More Than Wind

Key Points:

  • Global methanol markets have strengthened compared to YTD lows but are notably lower YoY – we flag the strength in overseas prices relative to the US, which limits domestic downside risk.
  • The methanol market shares many similarities with ammonia, as broadening demand from clean applications, such as a shipping fuel, and limited net supply growth favors tighter markets.
  • We highlight global LNG import capacity additions, strength in PetroChina refinery profits, and flag weakness in petrochemical feedstocks, such as propane, amid oversupply relative to Crude.
  • Our sustainability section today primarily targets news in offshore wind, as Orsted highlights significant potential impairments and RWE wins the first Gulf of Mexico offshore wind auction.
  • Freight markets, corporate inventory trends, and recent retail reports combine to suggest that concerns with consumer demand concerns are growing in 2H23. Indeed, supply is not the issue.

See PDF below for all charts, tables and diagrams

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