Daily Chemical Reaction
- Rising overseas production costs in 3Q23 spurred a production response from North American manufacturers, and the benefits are much more pronounced for this group than its customers.
- The H.B. Fuller August-quarter (3QFY23) results missed expectations but reflect higher margins despite lower sales – input costs for non-integrated producers notably rose MoM in September.
- Demand seasonally weakens in 4Q23 across most commodity chemical end markets, which we think will negatively impact Asia and European chemical producers, with Europe being worse off.
- While higher crude oil values have proven favorable for North American commodity chemical profitability in September, it has put downward pressure on domestic refinery profitability MTD.
- We discuss challenges facing the build-out of transmission infrastructure to support the energy transition, global CCS project growth, and mounting negative impacts from higher interest rates.
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