Cross Road Blues – Western Commodity Chemical Profit Surges, But The Equities Fail to Keep Pace

Daily Chemical Reaction

Cross Road Blues – Western Commodity Chemical Profit Surges, But The Equities Fail to Keep Pace

Key Points:

• Western commodity chemical industry profitability remains near historic highs, but equity performance in this subsector has underperformed peers. We discuss headwinds facing commodity sector equity performance in 2H21.   
• We highlight pertinent chemical sector corporate updates (e.g., Celanese, Braskem, Honeywell, Posco Chemicals, TPI Composites, & other items).  
• Sector demand indicators broadly remain robust, but we flag varied cost inflation and a mixed demand setting facing chemical product chains in 2H21. 
• We find numerous ESG announcements worth mention, ranging from the WoW decline in EU CO2 prices to multiple global project updates.
• Along with publishing our latest ESG weekly, we launch a multi-client initiative on carbon abatement in conjunction with the Power Research Group.
• We note numerous other pertinent chemical sector items in this report.

See PDF below for all charts, tables and diagrams