Navigating The Tempest: Multiple Global Concerns Favor Chaos, Commodity Price Volatility Set To Rise Near Term

Key Findings

General Thoughts: We evaluate, identify, and discuss relevant chemical and associated market happenings on an ongoing basis at C-MACC – our recent partnership with ChemOrbis will heighten both of our global efforts.
Supply Chain/Commodities: We discuss Lanxess selling its urethanes business to Ube, following an array of recent news of strategic alignment/restructuring efforts from European chemical producers across their global portfolios.
Energy/Upstream: We revisit the topic of power supply growth struggling to keep pace with demand, highlighting more news flow targeting the significant power requirements of AI/data centers on top of the electrification wave.
Sustainability/Energy Transition: We highlight the recent weakness in US ethanol margins as ethanol prices moderate and corn costs rise. We also discuss the demand-pull on corn (and other crops) to make bio-products.
Downstream/Other Chemicals: We provide a few thoughts on the pending EU vote to further lift EV tariffs on China, our broader auto market views, and the US port strikes and oil-price risks from rising Middle East tensions.