Global Market Analysis
European chemical producers are not responding to high downstream prices due to logistic challenges and high net production costs – this development favors imports. <br
August 17, 2022
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European chemical producers are not responding to high downstream prices due to logistic challenges and high net production costs – this development favors imports. <br
The global petrochemical production cost curve favors US producers, but lower prices and higher costs to still drive margin compression for most in 2H22.
Demand concerns are overtaking the expected benefits of input cost relief for non-integrated intermediate and specialty producers in 2H22 to keep optimism in check.
Our clean energy mineral price index declined for the fourth consecutive month in July, after a period of considerable strength. We do not foresee a
The Inflation Reduction Act – the reworded and watered-down climate policy for the US – stands a chance of passing. We think it could drive
Energy sector growth investment will increasingly target derivative product chains, such as chemicals, as upstream long-term return risk and ESG pressure remain high.
We
Global agriculture and energy commodity price strength remain significant YoY end-use inflation and 2Q earnings season topics, but most have fallen from 2Q22 highs. <br
Global energy markets favor producers and low-cost downstream manufacturers, such as US refiners and chemicals, creating significant strategic dilemmas for some in a setting of
Agriculture market indicators remain favorable while the cost curve for ammonia has steepened in favor of US producers, such as CF Industries, Nutrien, and LSB.<br
Global commodity chemical supply will likely grow relative to demand in 2H22, lessening regional price differences. Cost curve developments will regain focus.
Global natural
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