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

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.

See PDF below for all charts, tables and diagrams