Sunday Executive Summary
2023 is off to a bad start with low margins (but maybe not low enough) and global operating rates reflecting significant oversupply, which could worsen.
January 2, 2023
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2023 is off to a bad start with low margins (but maybe not low enough) and global operating rates reflecting significant oversupply, which could worsen.
Deteriorating consumer health and falling concern with chemical supply will hinder chemical sector equity performance in 1H23 – relative sub-sector bright spots exist.
Specialty chemical
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
US petrochemical production costs are globally advantaged, and ongoing global materials supply chain chaos has exposed the need for greater domestic production. However, Capex trends
Global chemical sector business outlooks anticipate consumer demand will remain strong in 2022 despite higher prices. We find more risk with specialty product margin outlooks
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