Daily Chemical Reactions

Energy Transition Demand Losing To Global Economic Malaise – Good For Buyers Bad For Investment, For Now
September 29, 2023
Commodities Mentioned:
Albemarle, SQM, Livent, Allkem, Celanese, Solvay, Huntsman, Covestro, Nova Chemicals, Ineos, Eastman, Li-Cycle, Syngenta, Nufarm, ADM, Bartek, LG Chem, BASF, ZeroAvia, Aramco, Hy Stor Energy, TotalEnergies, Fortescue, DuPont, Wacker, Borealis, Pemex, New Fortress Energy, TechnipFMC, Petrobras, Air Liquide, Trillium, Sigma Lithium, Ginkgo Bioworks, Autel Energy, Spruce Power, ExxonMobil, Perma-Pipe, The Azek Company, ,
Companies Mentioned:
Albemarle, SQM, Livent, Allkem, Celanese, Solvay, Huntsman, Covestro, Nova Chemicals, Ineos, Eastman, Li-Cycle, Syngenta, Nufarm, ADM, Bartek, LG Chem, BASF, ZeroAvia, Aramco, Hy Stor Energy, TotalEnergies, Fortescue, DuPont, Wacker, Borealis, Pemex, New Fortress Energy, TechnipFMC, Petrobras, Air Liquide, Trillium, Sigma Lithium, Ginkgo Bioworks, Autel Energy, Spruce Power, ExxonMobil, Perma-Pipe, The Azek Company, ,

Daily Chemical Reaction

Energy Transition Demand Losing To Global Economic Malaise – Good For Buyers Bad For Investment, For Now

Key Points:

  • The decline in critical mineral prices suggests that the macroeconomic backdrop has influenced demand more than energy transition growth. Lower prices favor stalling growth investments.
  • There is a risk that this continues through 2024, and the recovery after that exposes significant critical mineral shortages because of the investment lag – lithium looks OK, but others may not.
  • Ineos makes another opportunistic move in the US in a chemical market that is moving toward those willing to swing for the fences – we anticipate much more strategic movement in 24/25.
  • We see OPEC’s moves as a leading indicator of weaker growth and note South Korea oil import declines. We also look at LNG growth and how it will drive surpluses of US chemical feedstocks.
  • We comment on the carbon footprint of power-based hydrogen, who will buy decarbonized crops, why Mississippi may have a shot at hydrogen, and how US economic growth stays high.

See PDF below for all charts, tables and diagrams


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