Help Me Make It Through The Night – Commodity Price (& Margin) Support Needed to Incentivize Clean Production

Daily Chemical Reaction

Help Me Make It Through The Night – Commodity Price (& Margin) Support Needed to Incentivize Clean Production

Key Points:

• Despite being near multi-year lows, recent methanol price support favors investment in its production growth and the decarbonization of its product chain to serve expanding end markets.
• North American methanol margins are positive, and related cash flows enable producers to transition toward blue (and green) supply – rising interest among shippers is also supportive.
• Like ammonia, methanol demand as a clean shipping fuel is rising, though we think methanol faces more ex-shipping fuel end-market demand concerns in late 2023 and 2024 than ammonia.
• The development of green energy sources remains challenging, and we highlight continued issues facing offshore wind developments along with multiple green chemical project updates.
• We discuss the latest uptick in interest rates, which lessens consumer goods’ affordability, though it also increases most chemical and clean-energy production growth project costs.

See PDF below for all charts, tables and diagrams