Daily Chemical Reactions

Prices Inflation Is Slowing, But Will It Result In Demand Growing? Meanwhile, It’s Negative For Manufacturers
November 15, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Nova Chemicals, K+S, Neo Performance Materials, Linde, Johnson Matthey, Trecora, KBR, Westlake, ADM, Marathon Petroleum, Transclor, Baker Hughes, Siemens Energy, Nordex, RWE, Orsted, Aramco, ExxonMobil, Synthomer, Nippon Paint, Air Liquide, Eneos, Unigel, SunGas Renewables, Allkem, Agchem, BASF, Formosa Plastics, Indorama, Godrej Industries, IOL Chemicals and Pharmaceuticals, Kiri Industries, Shell, Technip Energies, Chevron, Aker Carbon Capture, Petrobras, Mitsui Chemicals

Daily Chemical Reaction

Prices Inflation Is Slowing, But Will It Result In Demand Growing? Meanwhile, It’s Negative For Manufacturers

Key Points:

  • Global price inflation has slowed in 2H23, as shown recently in US and other country reports, but it is much more positive for global consumers than manufacturers, especially in the West.
  • The recent decline in Brent Crude relative to US natural gas has returned the oil-to-gas ratio to pre-COVID levels and pushed the global petrochemical cost curve lower, favoring lower prices.
  • We discuss expanding Chinese petrochemical production working in favor of keeping global prices low, which is a headwind to Ex-China chemical producers and their energy transition.
  • US refinery margins have fallen recently, in part due to gasoline prices falling more than crude oil values – US ethanol margins remain relatively elevated, likely to spur domestic production.
  • We discuss a few happenings in global crop markets, two long-term outlooks of the hydrogen and recycling build-out in Europe, and take a look at global LNG import and export capacity.

Note that tomorrow we will host a webcast – “The Bankruptcy Risk of Clean Energy

See PDF below for all charts, tables and diagrams


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