Daily Chemical Reactions

North American Cost Advantage Shines In 3Q Results, Asian Supply Darkens Other Markets – Is The US Next?
October 26, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Methanex, Air Liquide, Asian Paints, Repsol, TotalEnergies, Allkem, Arkema, Olin, Orbia, OCI, Mura Technologies, Samsung SDI, Vopak, TechnipFMC, Siam Cement Group, ACWA Power, Rubicon Carbon, ChargePoint, Eaton, Eagle Materials, Carbios, NewMarket, Fluor, Bunge, Avangrid, Valmont, Neste, Idemitsu, SK Geo Centric, Amcor, Southern Company, Vattenfall, NextEra, Siemens Energy, Axalta, ConocoPhillips, Chevron, ExxonMobil, OMV

Daily Chemical Reaction

North American Cost Advantage Shines In 3Q Results, Asian Supply Darkens Other Markets – Is The US Next?

Key Points

  • The North American commodity chemical sector 3Q23 results reflect improvement relative to mid-year expectations and its peers in Europe and Asia, but the positive momentum has slowed.
  • We discuss the Methanex 3Q23 report, which unsurprisingly beat most Street expectations, and Asia MTO production as another example of pulling on low-cost North American feedstock.
  • Recent strategic moves at ExxonMobil, Chevron, and Shell support a view of confidence in a stronger-for-longer fossil fuel view – we think more long-term risk surrounds oil than natural gas.
  • We highlight more issues with offshore wind across numerous 3Q reports, the drop in credits for renewable fuels amid their rising production, and metals and mining decarbonization views.
  • US GDP growth beat expectations in 3Q, but skepticism about future growth remains high, and we display North American rail traffic trends and global container shipping rates at a five-yr low.

See PDF below for all charts, tables and diagrams


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