Contrasts & Confluences: Western Near Shoring Efforts Face Challenges from Low Eastern Prices

Companies Mentioned: Issaquena Green Power, Albemarle, American Salars, BP, Tianqi Lithium, Tesla, SQM, Arcadium Lithium, Dow, LyondellBasell, Westlake, BP, Woodside, Amazon, Ningbo Shanshan, BP, Google, Microsoft, Oxy, Tianqi, Shell, Vattenfall, Volkswagen
Commodities Mentioned: Ammonia, Urea, Methanol, Lithium, EV, Batteries, Copper, Nickel, Basic Chemicals, Crude Oil, Natural Gas, Ethylene, Renewable Power, Hydrogen, Wind, Solar, Biofuels, SAF

Key Findings

General Thoughts: C-MACC Co-Founder Graham Copley’s meetings in Europe this week suggest there is as much worry about China in Europe as in the US – all want less reliance on China, but many see greater dependence.
Supply Chain/Commodities: We discuss the strength of global chemical prices, notably in the West amid logistic issues from Asia and supply outages, and critical mineral price weakness, notably in lithium, as flagged by Tianqi.
Energy/Upstream: We highlight the BP energy outlook and comment on a few of its exhibits as we observe a bit of a balancing act, which is the case with most forecasts, underpinned by a few core global energy market views.
Sustainability/Energy Transition: We discuss the potential for AI and data center electricity demand to drive a tailored power mix for consumers and the still significant challenges to building out low-carbon supply chains.
Downstream/Other Chemicals: We highlight the latest consumer price index (CPI) postings from China and the US, flag relevant downstream business updates, and look at US rail traffic and China export product trends.