Daily Chemical Reactions

Upstream Vibes – Global Chemical Industry Challenges In Many Cases Typical, Solutions Can Starkly Differ By Region
September 14, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Mitsui Chemicals, Dow, Enterprise Products, BP, Maersk, Mitsubishi Electric, UBQ, KORE Power, Albemarle, Tesla, LG Chem, Eni, Verkor, Altus Power, Brightcore Energy, TotalEnergies, Air Liquide, SK Capital, Ecopol, AGI, Anaergia, EnerSys, Petrobras, Ecovyst, Petronas, Pertamina, ExxonMobil, Chevron, Aramco, KPC, Cove Point LNG, OCI NV, Orsted, Veolia, Brenntag, Oriental Energy, Adani Group, SQM, Pepsi

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


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