Daily Chemical Reactions

Chemical Sector Optimism Is Most Prevalent In Cost Advantaged Areas, Likely To Stay That Way In 2024     
November 2, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
CF Industries, LSB Industries, Nutrien, Yara, Energy Transfer, Westlake, Shell, ConocoPhillips, Braskem, Celanese, BASF, Albemarle, Ashland, Axalta, CP Chemical, Novonix, Ingevity, Tosoh, Alfa Laval, Ube, Entergy, Orbia, Solvay, ExxonMobil, Denbury, Cheniere, Tellurian, Compass Minerals, Williams, Lithium Royalty Corp., W.R. Grace, Oriental Energy, NuStar Energy, Siam Cement Group, Mangalore Chemicals & Fertilizers

Daily Chemical Reaction

Chemical Sector Optimism Is Most Prevalent In Cost Advantaged Areas, Likely To Stay That Way In 2024

Key Points

  • The significant chemical production cost differences between Europe and North America are present in producer 2H23 updates – we highlight Ammonia and Chlor-Vinyls as prime examples.
  • We discuss North American fertilizer producer CF Industries, LSB Industries, and Nutrien 3Q23 results and our broadly constructive view of the global ammonia market in late 2023 and 2024.
  • We highlight Westlake 3Q results, our constructive view of its integrated model, and why its housing end-markets will unlikely be robust in 2024 but better than most durable good markets.
  • Our sustainability section targets announced green and blue ammonia projects, the evaluation of ammonia production at Energy transfer, and FT conference views from Graham in London.
  • In the downstream demand section of this report, we highlight rising North American chemical rail volume and the drop in auto rail volume, and we show a constructive view of farmer income.

See PDF below for all charts, tables and diagrams

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