Daily Chemical Reactions

November Air – 4Q23 Market Conditions To Remain Weak & Turbulent, Restocking & Shutdowns Should Benefit 1Q24
November 3, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Methanol, Acetic Acid, Ethylene, VAM
Companies Mentioned:
Celanese, DuPont, AdvanSix, Lanxess, Aramco, Braskem, Shell, Ineos, Enterprise Products, PPG, Stepan, Albemarle, Livent, Brenntag, Daicel, Fluor, Ingevity, Orion S.A., Solvay, Cheniere, Oneok, Williams, Phillips 66, Orlen, Henkel, Lenzing, Maersk, Unigel, Adani Enterprises, Southwestern Energy, Alliant Energy, Borealis, BYD, KG Mobility, Vision RNG, Orsted, WIN Waste, SK Innovation, Apple

Daily Chemical Reaction

November Air – 4Q23 Market Conditions To Remain Weak & Turbulent, Restocking & Shutdowns Should Benefit 1Q24

Key Points:

  • Since mid-year, the acetyl chain has experienced substantial volatility, with low-cost producers benefiting upstream and downstream benefits mixed contingent on pricing power and demand.
  • We highlight Celanese before its 3Q23 report next week, as we see more risk in 4Q23 and into 2024 relative to 3Q23 when considering the rising competition across its global product chains.
  • We discuss the march upwards in spot US propylene values this week relative to US benzene, and both being hot topics as potential cost concerns for non-integrated buyers into year-end.
  • We highlight the decline in Brent Crude oil values relative to US natural gas this week, a plus for global chemical production, though not a net benefit to North American producer margins.
  • We also highlight the uptick in North American natural gas and NGL infrastructure, numerous sustainability developments, and Maersk signaling that profitability among shippers is bleak.

See PDF below for all charts, tables and diagrams


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