Upstream Vibes – Global Chemical Industry Challenges In Many Cases Typical, Solutions Can Starkly Differ By Region

Daily Chemical Reaction

Upstream Vibes – Global Chemical Industry Challenges In Many Cases Typical, Solutions Can Starkly Differ By Region

Key Points:

• The global chemical industry reflects an oversupplied setting, and a steepening cost curve has spurred low-cost production. Efforts to decarbonize value chains vary by region and consumer.
• The push toward sector decarbonization is spurring strategy maneuvers that rely on regional clean energy capabilities and, at times, new technology and pulls on global low-carbon feedstock.
• Recent North American rail traffic data and movements in domestic monomer and feedstock prices support the case for improved production, likely suggesting lower prices into year-end.
• We are more concerned with demand than the capacity to meet it in 4Q23, and the lack of a disruptive US hurricane suggests that higher chemical prices depend on further oil price strength.
• We discuss the TotalEnergies green hydrogen tender and Normand’Hy work with Air Liquide, and we flag global and region-to-region freight rates to show improved transport affordability.

See PDF below for all charts, tables and diagrams