Candy Paint – Global Coating Reports Show Mixed Results; Is New US Residential Construction Set to Catch a Sugar High?

Companies Mentioned: Air Products, AkzoNobel, Sherwin-Williams, Linde, Ineos, D.R. Horton, PPG, Asian Paints, Westlake, Huntsman, PulteGroup, Woodside, Tellurian, Tesla, BYD, Cheniere, ExxonMobil, Chevron, Shell, Freeport LNG, New Fortress Energy, Mura Technology, Eastman, Purecycle, PepsiCo, Porsche, Coca-Cola, GM
Commodities Mentioned: Industrial Gas, Hydrogen, PVC, Paints and Coatings, Plastics, EVs, LNG, Natural Gas, Crude Oil, Polyethylene, Polypropylene, Polystyrene, Syngas, Waste, Carbon, Biodiesel

Key Findings

General Thoughts: Global coating producer business updates display mixed results by geography and global end-market, which we discuss along with rising optimism toward US new residential construction amid short supply.
Supply Chain/Commodities: We discuss the creation of a senior management board at Air Products, compare AkzoNobel and Sherwin-Williams 2Q results and outlooks, and flag constructive views of Westlake and Huntsman.
Energy/Upstream: We discuss Woodside ambitions in LNG, highlight recent trends in Brent Crude oil and US, Europe, and Asia natural gas prices, and flag weekly US LNG tanker transits to global markets at a 2024 YTD high.
Sustainability/Energy Transition: We discuss chemical recycling production put in motion in 2024 and concerns with the economics for some. We also add a few thoughts to our hydrogen research published earlier today.
Downstream/Other Chemicals: Most global chemical sector corporate outlooks anticipate strong US conditions to persist while Europe and Asia improve. However, we continue to see most of these benefits pushed to 2025.