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Latest Reports

 

Our most recent publications are summarized in the blocks below and a more complete list can be found to the right of the blocks. Please call us with any questions.

Hunger Games – Inflation Will Cut Non-Essential Product Demand, Increasingly Hard To Digest

Hunger Games – Inflation Will Cut Non-Essential Product Demand, Increasingly Hard To Digest

US retail sales increased in April, with price hikes leading the charge. We discuss takeaways from the latest Walmart and Home Depot reports and mounting cost headwinds likely to impact chemical end-consumer spending.
We highlight pertinent energy, chemical, and other corporate updates (e.g., BASF, Enterprise Products, LSB Industries, American Vanguard, & others).
We discuss relevant ESG items ranging from Kroger food waste estimates to the US’s mounting state support for advanced recycling. We also highlight a slide from Archaea Energy and flag our latest ESG research in LINK.
We discuss numerous other pertinent chemical sector items in this report.

Global Chemical Update – The Foundations Of Decay

Global Chemical Update – The Foundations Of Decay

US polymer values, on average, reflect more support WoW than Ex-US polymer values, US monomer values, and US natural gas/NGL values. With US polymer supply set to rise, downward pressure on prices appears likely.
We flag our latest Chemical market thematic research, Global Indicators Lift Concerns, Rocky Times Far From Over. Also, see our  ESG weekly, Oil and Gas Necessary Long-Term – The Sector Needs Friends.
Other global commodity trends flagged in this report comprise monomer, polymer, and feedstock indicators relevant to gauging sector profitability.

Global Indicators Lift Concerns, Rocky Times Far From Over

Global Indicators Lift Concerns, Rocky Times Far From Over

Concerning data points, such as higher than expected inflation and concerns with global food supply, continue to mount in 1H22, and quick fixes are unlikely.
US chemical industry health indicators have turned negative, especially for some facing new commodity market supply when demand growth may lose momentum.
Rising input costs are an added problem for sectors/products with limited pricing power; the fertilizer space displays more pricing power than others.
We highlight a higher level of caution in the tone among companies reporting 1Q22 results late in the season, which is consistent with our mounting concerns.
Otherwise, we look at energy (again) and the strategic challenges facing the majors, some disconnects on shipping, and the problems in China.

I Need A Dollar – US Chemical Product Export Headwinds Rise, Sector Challenges Mount In 2Q

I Need A Dollar – US Chemical Product Export Headwinds Rise, Sector Challenges Mount In 2Q

The US Dollar has strengthened relative to major foreign currencies YTD, creating headwinds for US chemical product exporters. Rising feedstock costs and falling consumer product affordability are also sector challenges in 2Q22.
We highlight pertinent energy, chemical, and other corporate updates (e.g., Mitsui, BASF, Kuraray, Toray, Asahi Kasei, Mitsubishi, Cabot, & others).
We discuss relevant ESG items ranging from Berry Global lifting emission reduction targets to tight battery material supplies challenging EV growth. We also highlight our latest ESG sector dedicated weekly research in LINK.
We discuss numerous other pertinent chemical sector items in this report.

2step – PPI Outpaces CPI In April, Supporting Case For Further Chemical End-Market Price Hikes

2step – PPI Outpaces CPI In April, Supporting Case For Further Chemical End-Market Price Hikes

Producer price hikes have outpaced consumer prices YTD, suggesting end-market price increases are still ahead in many product chains. We also flag recent business updates that are more cautious than those posted in April.
We highlight pertinent energy, chemical, and other corporate updates (e.g., SABIC, OCI, Braskem, Indorama, Celanese, Evonik, Phillips 66, and others).
We discuss relevant ESG items ranging from global ammonia demand from clean-energy applications to a lack of proper planning in renewables. See our latest ESG weekly and other related research coverage in LINK.
We discuss numerous other pertinent chemical sector items in this report.

Oil and Gas Necessary Long-Term – The Sector Needs Friends

Oil and Gas Necessary Long-Term – The Sector Needs Friends

We continue to argue that decarbonized fossil fuels will play a critical role in the energy transition – credible recent analysis on climate change aligns with our view.
Even as global warming narratives become bleaker, energy security and affordability have now taken a front seat, and no government can ignore inflation.
But oil and gas companies face some single-minded shareholders, including some premature break-up activists, and are now suggesting policy vs. waiting.
We look at plastic waste and the scale of the challenge/opportunity in the US, but for more than just recycling – packagers still need to make changes.
We flag rising carbon capture activity despite no improvement in incentives (in the US), discuss hydrogen and renewable fuels, and map other ESG findings.