Daily Chemical Reaction
Can’t Stop, Won’t Stop – China Focuses On Production, The West On Profits; More Tricks Than Treats For Most
- Chinese chemical growth is the primary culprit of global oversupply in 2023 – it has limited North American cost benefits and put sizable pressure on Europe and Asia Ex-China profitability.
- China will add more chemical capacity and, given their sizable cost advantage, North American producers will run harder in 2024, putting the onus on EU and Asia Ex-China to balance supply.
- We discuss OMV, BASF, and BP 3Q results, flag chemical production cuts in the EU and Asia Ex-China, and explain why chemical assets in these areas are rising as feedstock integration targets.
- Many are pushing clean production initiatives with their 3Q23 reports in areas where green and low-cost energy is needed for many projects to be economical. It’s easier said than done.
- While US 3Q23 GDP exceeded expectations, this was not the case in Europe, and we discuss this development alongside weak industry statistics out of China and multiple global updates.
See PDF below for all charts, tables and diagrams