Daily Chemical Reactions

Help Me Make It Through The Night – Commodity Price (& Margin) Support Needed to Incentivize Clean Production
October 4, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Methanol
Companies Mentioned:
Methanex, CF Industries, Maersk, C2X, Borouge, Bayer, FMC, Koch Methanol, LG Chem, Solvay, Freepoint, Inter Pipeline, Palmdale Oil, DKSH, OMV, Wood, RPM, Lithium Americas, Air Water, American Gas Products, Shin-Etsu Chemical, Carbon Recycling Int., Jiangsu Sailboat, Repsol, Honeywell, Sonatrach, Aramco, Hertz Lithium, TotalEnergies, Macquarie, MOL, EDF Renewables, ExxonMobil, Reliance Industries, Lubrizol, International Process Plants, KBR, New Fortress, ENEOS

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


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