Daily Chemical Reactions

Kermit’s Swamp Years – More Chemical Cookies Than Monsters, Low Prices, & Singing “It’s Not Easy Being Green”
September 19, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Methanol, Ammonia
Companies Mentioned:
Methanex, OCI, Nutrien, CF Industries, Sungas Renewables, Carbon Sink, Nippon Paint, Jiangsu Sailboat, KBR, Orica, Indigo Paints, OMV, Solvay, Covestro, Anson Resources, Fertiglobe, E3 Lithium, Nova Chemicals, Bachem, INEOS, Kemira, Borealis, Systemiq, BASF, Lonza, Petronas, Pertamina, TotalEnergies, Eneos, PTT Global Chemical, Ami Organics, Saudi Kayan, Grupa Azoty, BP, LG Energy Solution, ExxonMobil, Chevron, Woodside, Reliance Industries, Shell

Daily Chemical Reaction

Kermit’s Swamp Years – More Chemical Cookies Than Monsters, Low Prices, & Singing “It’s Not Easy Being Green”

Key Points:

  • Methanol, similar to ammonia, appears set to benefit from rising demand beyond traditional channels, but low prices are limiting its supply growth prospects in a low-carbon economy.
  • Existing low-cost ammonia and methanol producers are in a better risk-adjusted position to convert their units, relative to most new technologies, to meet low-carbon product demand.
  • Crude oil prices reflect strength this week relative to natural gas, and this chemical cost curve ratio continues to increase in favor of North American producers compared to Europe and Asia.
  • We highlight the comparative strength of the US PPI for automotive chemicals than in most chemical commodities YTD, our UAW strike concerns on supply chains, and our 2024 concerns.
  • We provide market share estimates for chemicals consumed in autos in light of the UAW strike and US steel idling a plant in response. We also flag other relevant global news and price trends.

See PDF below for all charts, tables and diagrams

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