Welcome to the Industry News!
Its the middle of the year! Let’s see how the Chemical Industry is evolving in this 2023!
IMPORTANT NOTICE:
- I’ll be splitting this Newsletter into 2 e-mails, since I’ve been getting a lot of feedback in it being “too long”.
- The Chemical Industry Trends/Technology section will be sent 2 weeks from the 1st e-mail (i.e. 1st week of august, 3rd week of august and so on).
And, as usual, we’ll cover this topics:
- Chemical Industry News
- Chemical Industry Stocks & Markets
- Industry Technology & Trends(Will be sent separately, in the next newsletter e-mail)
- Catching Up With Social Media Trends
- Product of the Month
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Chemical Industry News
Ineos cracker project halted Belgian:
- Ineos plan to construct Europe’s largest and most environmentally friendly ethylene cracker in Antwerp, Belgium, has been halted by a Belgian court due to concerns over excessive nitrous oxide emissions, with Ineos now having a limited time to appeal the decision.
- The court’s ruling takes into account the potential cumulative environmental impact of the plant and the already elevated nitrogen levels in the area, posing risks to a nearby nature reserve and species.
- Further legal cases and uncertainties about construction arise, including appeals, the requirement for a nitrous oxide abatement system, and broader concerns about the plant’s effects on habitats, people, climate, and freshwater resources.(read more)
Europe backs battery material projects
- The European Commission has granted over $200 million in funding to battery material projects in Europe to boost local battery manufacturing.
- though some companies find the support inadequate compared to US subsidies under the Inflation Reduction Act, with firms like Freyr seeking clear support to ensure global competitiveness while hoping the US incentives will encourage Europe to provide more substantial backing for clean technology projects. (read more)
BP Wins €6.8 Billion Wind Farms Contract
- BP is entering Europe’s offshore wind sector, building two 4GW North Sea projects by 2030
- To support green energy initiatives like hydrogen, biofuels, and EV charging
- Initial payment of €678 million and expected 6-8% ROI, reinforcing their commitment to decarbonization. (read more)
Exxon to buy Denbury in $4.9 billion deal
- In an all-stock deal, accessing a significant CO2 pipeline network and aligning with Exxon’s low carbon goals, with a focus on carbon capture and sequestration, and the deal also includes Denbury’s oil and gas operations; the acquisition is set to close in Q4. (read more)
Another firm interested in Braskem
- J&F Investimentos, the investment arm of Brazil’s Batista family and controlling JBS, the world’s largest meat-packing firm, has offered $2.1 billion for a 38% stake in Brazilian petrochemical company Braskem
- Similar to the value of a previous bid by Unipar Carbocloro in June, as Novonor, the Brazilian conglomerate, considers multiple offers for its controlling interest
- Previous solicitations have also come from Abu Dhabi National Oil and private equity firm Apollo Global Management. (read more)
Lhyfe plans green hydrogen plant in Germany
- French green hydrogen producer Lhyfe intends to construct a 70 MW plant in Perl, Germany,
- Using water electrolysis powered by renewable energy to produce up to 30 metric tons of hydrogen daily, with construction set to begin in the first half of 2027
- the plant will be linked to the mosaHYc hydrogen pipeline, aiming to supply hydrogen to Luxembourg, the German Saarland region, and northeastern France.
SHORTS:
- Saudi Aramco has completed its purchase of a 10% stake in Rongsheng Petrochemical for $3.4 billion.
- BP & the Energy Institute released Statistical Review of World Energy 2023. This is the 72nd edition, and it contains relevant data on Ukranian war, Post Covid recovery and Energy crisis. I’ll be making a course on this report, so stay tuned! (read report)
- Covestro and LyondellBasell Industries have idled their propylene oxide– styrene monomer facility in Maasvlakte, the Netherlands, for July and August because of high inflation and decreased demand.
- CF Industries Holdings has proposed it will permanently close its ammonia facility in Billingham, England, after its forecast that UK prices for natural gas will remain high long term.
- Aviwell has raised $10 million in seed funding to develop an artificial intelligence–based process for discovering natural molecules to boost animal growth.
- The produced hydrogen will be utilized by Sinopec at its nearby Tahe Refining & Chemical complex, replacing the use of hydrogen derived from fossil fuels. This move demonstrates Sinopec’s commitment to transitioning to cleaner and more sustainable energy sources. (read more)
- LyondellBasell completes acquisition of Mepol Group: Mepol operates plants for recycled compounds in Italy and Poland; will be part of LyondellBasell’s advanced polymer solutions business. (read more)
Chemical Industry Stocks & Markets
[DISCLAIMER: This is NOT a financial recommendation. All investment and financial decisions you
make, should be done with a certified professional . This is just for informational purposes]
- KVUE -1.96% Kenvue Inc, the consumer spinoff of Johnson & Johnson, saw a significant drop in stock prices as J&J announced plans for an exchange offer. The uncertainty surrounding the offer and potential dilution caused concern among investors.
- Johnson & Johnson saw a 6% increase in its stock, which contributed to the rise of the Dow 30. The surge came after Johnson & Johnson announced its second-quarter revenue and adjusted earnings, surpassing Wall Street’s predictions. The company also raised its full-year guidance due to a significant increase in sales from its medical technology (medtech) division.
Pfizer takes a shot at earnings:
- Analysts predict a decline in Pfizer’s Q2 earnings despite better-than-expected results from AstraZeneca and Novartis. The report is scheduled before Tuesday’s market opening.
- The stock has a consensus Buy rating from sell-side analysts. AstraZeneca’s unit, Alexion, is set to acquire Pfizer’s preclinical gene therapy programs and technologies for rare diseases in a $1 billion deal.
- Previous records show Pfizer has outperformed EPS estimates in 8 quarters and revenue forecasts in 6 of them.
- Consensus EPS estimates for Pfizer stand at $0.59, with revenue estimates at $13.46 billion.
Why is Buffett backing a losing horse?
- Warren Buffett’s Berkshire Hathaway has steadily increased its holdings of Occidental Petroleum
- Despite a 9.7% stock loss in 2023, valued at $13 billion (24.9% stake), possibly due to strategic timing amid falling energy prices and OXY’s better performance compared to industry peers like Chevron, EOG Resources Inc, and Pioneer Natural Resources Co.
Oil: Goldman’s
- Predicts a surge in oil demand will push crude prices higher soon.
- An analyst there foresees significant deficits in the second half, with demand reaching a record high of almost 2 million barrels per day in the third quarter. The bank expects Brent crude to climb from its current level just above $80 per barrel to $86 per barrel by the year-end.
SHEL 1.9%
- Shell, the energy giant, has cautioned that the gas division’s trading for the past three months will be “noticeably lower” as compared to the prior quarter.
- The London-based oil and gas company mentioned that trading was impacted by seasonal factors in Q2 2023.
3M MMM 4.87%
- 3M shares climbed 4.8% after Bank of America upgraded the stock from underperform to hold.
- The upgrade was based on factors such as litigation settlements, restructuring efforts, and the planned spinoff for the health-care business, which are all expected to benefit the company.
PEP -0.44% PepsiCo
- will announce Q2 in the premarket. Despite some losses, PEP stock remains high. The pricing context, Frito-Lay, and Beverage performance are closely watched.
- Aspartame use developments may influence investor talks. Expectations are high for the earnings, which could potentially leave PEP stock prone to a drop, with any slump seen as a “buy the dip” chance.
China’s June exports
- dropped 12.4% in dollar terms from the previous year, significantly more than the 9.5% drop estimated in a Reuters poll and May’s 7.5% decrease. Imports witnessed a 6.8% yearly decline in June, exceeding expected 4% fall
SILVER -0.32%
- Silver surged 8.2% for the week, experiencing its most substantial weekly increase since March. Watch Silver this week.
WHEAT -0.34%
- Fears over global food security have resurfaced as Russia exits a crucial wartime agreement that permitted the export of Ukrainian grain via the Black Sea.
- The announcement led to an increase in wheat, corn, and soybean prices.
Oil
- is poised for its largest monthly gain in over a year, with a tightening market and soaring crude demand amid OPEC+ production cuts.
- WTI stayed above $80 per barrel, enjoying five consecutive weekly gains, reaching the highest levels since April.
- The benchmark surged approximately 14% in July, marking the best July performance in almost 20 years.
About Social Media
This is a curated list of the most relevant content (video, blog, newsletter, twit, etc.) related to the chemical industry. I think they are quite worth checking out:
- e-mail (Newsletter): If you are into Oil&Gas, I’ve been recently following The OilPatch, which talks all about Oil&Gas industry, a deeper dive into markets and trends. Go check it out
- YouTube: Now that Oppenheimer has been released in theaters, check out the biggest atomic bomb ever dropped in Eart: Check this video!
- Instagram: If you like animations and quickly explained science videos, check out this account Kurzgesagt
- TikTok: A quick video on Nuclear Energy (Video)
- Twitter: Or X? just in case you missed it out, the platform changed their name to X. A nice tweet regarding Oppenheimer Ticket Sales
Product of the Month
I’m currently working on several Chemical Reaction Engineering (Reactors) Courses. All of those will be part of a HUGE Bundle containing at least 5-7 courses including:
- 1) Reaction Kinetics
- 2) Isothermal Reactor Design
- 3) Non-Isothermal Reactor Design
- 4) Chemical Reactor Simulation… and more courses!
You can be an “early bird” and purchase the Bundle cheaper NOW. Average course price is $20-30 USD; currently there are 2 courses available, so you can get started learning 🙂
The price of the Bundle right now is $50 USD, and you’ll get access to all future courses (without extra payments).
Take advantage of this opportunity! Claim Offer!
As usual, you have a 30-Day Money Back Warranty, if you don’t like the course or bundle so make no worries, enroll now and boost your training skills!
Final thoughts
As the first half of the year concludes, it is evident that both industries and economies are experiencing a discernible resurgence, a development of significant benefit to the Chemical Industry and professionals in the field of Engineering.
This resurgence in the industry and economic sectors bodes well for enhanced growth prospects and innovation opportunities, fostering an environment conducive to advancements in chemical technologies and engineering solutions.
As the global landscape continues to improve, stakeholders in the Chemical Industry and Engineering are most likely going to capitalize on this positive momentum to drive sustainable progress and development.
See you next month!
Is there anything in especial that you liked the most? or Maybe you are not quite into the new trends? Just reply to this e-mail and let me know!