Global Market Analysis, Sunday Executive Summary

Greenflation and Tradeflation: Higher Power and Polymer Prices In the West Likely to Linger

August 15, 2021

Companies Mentioned: Dow, LyondellBasell, BASF, Westlake, ExxonMobil, Nova, CP Chemical, Air Products, Ascend, Sinopec, Brenntag, Pembina, Chemanol, Cosmo Energy, DIC, Ferro, Hanswha Solutions, Hyosung, Idemitsu Kosan, JM, Kansai Paint, KBR, Kumho Petrochemical, Lanxess, Livent, Lotte Chemical, Maire Tecnimont, MBCC Group, Nippon Soda, OCI, Oriental C&C, Orion Eng. Carbons, PTTGC, Sappi, Sasol, Aramco, Sika, Natgasoline, Tasneee, Phillips 66, McDermott, Trinseo, OQ , Motiva, Dairen Chemical, Formosa Plastics, Shintech, OxyChem, Birla Carbon, Inter Pipeline, Cabot, Core Lithium, Methanex, Hexion, Mineral Resources, Nippon Paint, Nissan, Osaka Soda, Reliance, Showa Denko, Sumitomo Seika, Tokai Carbon, Chesapeake, Ensign, Enterprise, Ineos Styrolution, TotalEnergies, Bloom Energy, PPG, Celanese, YCI Methanol, Kuraray, Henkel, Graphite India, Atotech, Bapco, Ester Industries, Sakai Chem, SGL Carbon, Sumitomo, Bakelite, Petkim, MEGlobal, BMW, Tesla, Thyssenkrupp, Pilot Energy, Mitsubishi Chem, Air Liquide, Linde, Cheniere, Sempra, Schlumberger, Halliburton, Baker Hughes, Gulf Coast Sequestration, Continental AG, Huntsman, Olin, Sadara, Indorama, Ultrapar, Petro Rabigh, Enagas, Mitsui Chemicals, Howard Energy, MOL, Origin Energy, OZ Minerals, ESB, Wood, Airbnb, Embraer, Ford, Hapag-Lloyd
Commodities Mentioned: Methanol, VAM, PVC, PET, Polypropylene, Polyethylene, Polystyrene, Ethylene, Lithium, Carbon Dioxide, Hydrogen, Natural Gas, NGLs, Crude Oil, Naphtha, Propylene, Benzene, Bio-Polymers, Aviation Fuel, Lumber, Metals, Acrylonitrile, Phenol, Acetone

C-MACC Sunday Thematic & Weekly Recap 79

Greenflation and Tradeflation: Higher Power and Polymer Prices In the West Likely to Linger

The IPCC report, and how it might influence both thinking and behavior, will likely reach far beyond the focused climate change work that we conduct weekly.
The possible inflation impacts of radical policies that the IPCC study may encourage, especially as we head towards COP26, need common-sense analysis.
Corporates face the risk of being hit with unreasonable requests to clean up emissions and the timing of these efforts – the cost will get passed on to customers.
Meanwhile, US commodity chemical feedstock costs have risen and generally remain bullish. If crude oil prices weaken some of the US advantage will evaporate.
Freight rates remain a huge barrier to entry for anyone looking to exploit the abnormally high US polymer price setting, a major positive for domestic producers.

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