Asia’s olefins cost-recovery squeeze is forcing ex-China asset reviews, as naphtha-based production costs exceed those in Europe and Chinese exports limit derivative price recovery.
Europe’s
1st Topic of the Week: Brand-backed resin platforms should beat standalone recycling capacity when dedicated offtake, certified content, virgin performance, and converter proof make compliance
General Thoughts: Waha’s discount reflects trapped Permian gas value, but lower crude, new takeaway, and rising demand could shift more of the upside to pipeline
Persistent European premiums over Henry Hub confirm LNG marginal clearing as the dominant marginal price-setting mechanism, anchoring US export-linked gas economics and long-cycle infrastructure returns.
General Thoughts: We do not view the LyondellBasell strategic review of its European petrochemical assets with surprise, as it is a sign of more to
General Thoughts: Relative cost position has become a major discussion topic in terms of YTD margin support and profit outlooks for 2024, as many global
General Thoughts: The North American polyvinyl chloride (PVC) market benefits from a low-cost production position, enabling the continued profitable production push towards Europe and other
General Thoughts: The C-MACC Clean Energy Mineral Index reflected a ~48% lower level in January 2024, but the rate of MoM decline has slowed. While
General Thoughts: While many companies rapidly expanded energy transition efforts amid surging expectations in 2022/23, Linde took a more patient and balanced approach that has
General Thoughts: The C-MACC Clean Energy Mineral Index fell 53% in 2023, closing the year at YTD low, as energy transition growth failed to offset
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