Daily Chemical Reactions

It’s Raining Hard – Without A Cost Umbrella, You Better Learn How To Swim! The Water Will Likely Deepen In 2024!
October 27, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
LyondellBasell, Olin, Eastman, ExxonMobil, Albemarle, Taekwang Industrial, TotalEnergies, Repsol, Baker Hughes, NuScale, ConocoPhillips, Dow, Epsilon AM, ADS-TEC Energy, Invista, Minerals Technologies, FUCHS SE, Clariant, Equate, Yara, Navigator Holdings, Sinopec, Tokuyama, Ineos, Huntsman, PolyCycle, Range Resources, Mitsubishi Power, Star Scientific, Aramco, Eni, Honeywell, Chemours, SQM, Azure, Element Solutions, EQT, Orion S.A., Lotte Chemical

Daily Chemical Reaction

It’s Raining Hard – Without A Cost Umbrella, You Better Learn How To Swim! The Water Will Likely Deepen In 2024!

Key Points:

  • There is more confidence in high oil prices and recent cost curve developments holding than in demand in most 2H23 business updates, and most expect oversupplied chemical markets in 2024.
  • US commodity chemical producer profit, such as at LyondellBasell, has improved relative to overseas profitability in 2H23 – the continuation of a wide oil-to-gas spread supports this trend.
  • Non-integrated commodity and specialty chemical producers reported higher margins in 3Q23, but margin support into 2024 is a concern for most – we discuss Covestro, Invista, and Eastman.
  • Sustainability initiatives continue to mount globally, and while the diversity of plans is a plus for picking winners, there is a growing industry concern there are too many cooks in the kitchen.
  • We discuss differences in macroeconomic news flow by region and show Covestro end-market views of the variances by global product chain, as there are few indications of a surge into 2024.

See PDF below for all charts, tables and diagrams


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