Welcome to the Industry News!
Hi there guys!
thanks for all your feedback and comments, I really appreciate them and take them into consideration.
Some of you commented on a special analysis on some specific companies or stocks and I’ll be adding some comment on those.
I added a section within “2. Chemical Industry Stocks & Markets” its now titled “COMPANIES WORTH CHECKING OUT“. I also modified the Short vs Even Shorter News, now displaying only “short” news.
Please note that this is not my full time job and I am no financial expert.
Content:
- Chemical Industry News
- Chemical Industry Stocks & Markets
- Catching Up With Social Media Trends
- Product of the Month
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1. Chemical Industry News
ExxonMobil Completes Expansion of US Chemical Production at Baytown
- ExxonMobil has launched two chemical production units at its Baytown, Texas facility, part of a $2 billion expansion on the US Gulf Coast.
- The new units will produce performance polymers and linear alpha olefins used in a variety of applications.
- ExxonMobil’s Baytown facility is one of the world’s largest and most advanced refining and petrochemical complexes. (read more)
US Economy – Treasury Yield
- The 10-year treasury yield has reached a 15-year high, increasing concerns about persistent inflation and prolonged tight monetary policies.
- It surged 6 basis points to 4.624%, the highest level since 2007.
- The 2-year Treasury yield also climbed, rising by 7 basis points to 5.148%.
Eli Lilly to Acquire Radiopharmaceutical Company Point Biopharma for $1.4 Billion
- Mitra Chem secures $60 million in series B funding led by General Motors to research AI-driven battery materials, focusing on iron-based cathodes as a cost-effective alternative to existing lithium-ion batteries.
- Their R&D facility enables rapid testing and development.
- They previously raised $20 million in series A funding in November 2021.(read more)
US start-ups advance Alternative Electrolyzers for Hydrogen
- Peregrine Hydrogen, based in Santa Cruz, California, secured $7.8 million in funding to scale up its innovative electrolyzer technology, capable of producing hydrogen and oxygen-rich industrial chemicals.
- Verdagy, also from California, plans to produce 20 MW versions of its anion-exchange membrane electrolyzer in early 2024 and aims to achieve a cost of $2 per kilogram for green hydrogen by 2026.
- The company raised $73 million in series B funding in August.
- Both companies face challenges as startups, with the potential for a long journey to success in the electrolyzer market, despite the substantial market potential. (read more)
Albemarle Makes Final Proposal for the Acquisition of Liontown
- Albemarle has presented a revised proposal to acquire all outstanding shares of Liontown, an Australian lithium miner, at A$3.00 per share in cash, valuing the company at A$6.6 billion.
- This new cash offer reflects a 14.5% premium over Liontown’s last closing price in September and is 20% higher than Albemarle’s previous offer, which was rejected in March.
- Liontown’s board intends to unanimously recommend the new offer to shareholders, contingent on a non-disclosure agreement and after an independent expert’s review, unless a better offer emerges. Albemarle considers this proposal its best and final one. (read more)
BASF invests in plant-based chemicals
- BASF has entered a long-term agreement with Qore, a Cargill and Helm joint venture, to procure biobased 1,4-butanediol produced from corn at a $300 million plant in Eddyville, Iowa.
- BASF intends to utilize this chemical to manufacture derivatives, including polytetrahydrofuran for spandex production.
- Additionally, BASF has initiated the production of 2-octyl acrylate, a coatings and adhesives solvent, in Ludwigshafen, Germany, using 2-octanol sourced from castor oil. (read more)
Oil & Copper Demand for China
- China is experiencing a significant surge in commodity demand, with Goldman Sachs reporting higher-than-expected growth.
- Copper demand has seen an 8% year-on-year increase, while iron ore and oil demand have risen by 7% and 6% respectively.
- This demand is driven by factors such as:
- the green economy
- grid expansion
- property completions, particularly for copper used in green initiatives like onshore solar installations, despite challenges in the property sector.
Propylene oxide plant opens using new process
- Qixiang Tengda produces propylene oxide in Zibo City, China using innovative technology involving two plants.
- The process aims to replace the traditional chlorohydrin method and has already been adopted in South Korea and China, with plans for expansion in Hungary. (read more)
SHORTS:
- India’s Nirma acquires API producer for $681M
- Shell picks Duqm, Oman, for blue hydrogen, ammonia project
- BASF reports commercial-scale production of bio-based 2-octyl acrylate
- SK Chemicals teams up with Chinese firm on waste plastic recycling
- Ineos to buy Eastman’s Texas City site for $490M
- Albemarle to pay $219M to resolve US FCPA investigation
- Dow partners with Chinese firm on submarine cables for offshore wind power
- LyondellBasell eyes permanent PP(polyproylene) plant closure in Italy citing challenging market conditions
- Mexichem Fluor to build hydrogen fluoride plant in Japan
- Sinopec gets green light for 1 MMt/y ethylene plant at Hunan petchems complex
- ExxonMobil to scale up new C5 polymer
2. 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]
MRK -0.47% – Merck’s Covid Pill
- A recent study published on Monday suggests that Merck’s widely used antiviral Covid pill may have the potential to induce virus mutations, potentially leading to transmission to others.
- This discovery raises concerns about the drug’s impact on the evolution of the Covid virus and could prompt a reevaluation of molnupiravir, which has been one of the earliest available treatments for Covid worldwide.
- This development is significant and may have implications for the use and continued research of the drug.
Fastest Growing Economy: Guyana:
- Guyana, a South American nation with an 800,000 population, is on the brink of remarkable growth, primarily fueled by its burgeoning oil production and export industry.
- The International Monetary Fund (IMF) predicts a 38% growth by the end of the year, while BMI forecasts an astonishing 115% increase in the next five years.
EuroOIL +0.26% – Oil prices:
- Oil prices have risen above $95 per barrel, driven by robust demand and ongoing supply constraints, which may fuel higher global inflation.
- Despite this uptrend, Citi maintains a bearish outlook, expecting price declines in response to an anticipated increase in supplies, notably from the United States.
- The situation reflects the ongoing volatility and differing market views on the oil industry. Check prices here
More Oil:
- Traders are contending with the consequences of increasing oil prices in 2023.
- WTI crude futures, which had been below $80 per barrel, have risen significantly, surpassing $88 per barrel, while Brent exceeded $90.
- This surge in oil prices can be attributed to the extension of production cuts by Saudi Arabia and Russia, indicating a complex market situation with significant implications.
GE 0.42% GE HealthCare Technologies
- Stock surged following Friday’s announcement of a 3-cent per share cash dividend for Q3, payable to shareholders on record as of October 20, with distribution on November 15.
- Oracle Plunged – ORCL -13.50%
- Oracle experienced its most significant stock decline since 2002, with a sharp drop of 13.5%, making it the leading decliner among tech stocks in the S&P 500.
- This drop was triggered by Oracle’s cloud sales growth falling short of high expectations, raising doubts about when revenue from generative AI demand will materialize.
- The market’s reaction reflects concerns about the company’s performance and outlook in the tech industry.
- Long Oil Industry
- Exxon Mobil and Chevron experienced stock price increases on Thursday as U.S. oil prices surpassed $90 per barrel, reaching a level last observed in November 2022.
- Exxon’s shares rose by 1.7%, and Chevron witnessed a nearly 1% increase, reflecting the positive sentiment in the oil industry.
ARM 24.23% British chipmaker Arm IPO
- British chipmaker Arm made its debut on the public market, opening at $56.10 and quickly surging by 10%.
- In just 30 minutes, shares soared over 20%, reaching over $61, surpassing their $51 IPO price.
- The initial valuation of $54.5 billion has now exceeded $60 billion, indicating substantial investor interest and confidence in the company.
COMPANIES WORTH CHECKING OUT
- Wacker Chemie – Basic Chemicals
- We’ll talk about Basic Chemicals & Wacker Chemie, a family-owned company with a strong history.
- Wacker Chemie focuses on various materials, including:
- silicone rubbers, Ethylene Vinyl Acetate polymer Powder, Polysilicon, and wafers, with a diverse customer base spanning traditional manufacturing, semi-industry, and chemical materials.
- The company’s appeal is primarily rooted in its profitability:
- boasting a gross margin exceeding 26% and a net margin of $15.6 per $100 of profit
- Despite its smaller size, Wacker Chemie maintains low long-term debt and robust financials.
- The company’s potential lies in its ability to prepare for growth when market trends reverse, with a particular focus on biotech.
- Analyst targets range from €111 to €190/share, with an average of €153.
- Enel – Utility Company
- Enel, a major integrated utility company, has experienced significant growth
- with its stock price increasing by 47% over the past year, presenting an appealing investment opportunity.
- Enel is one of the largest power companies globally, operating throughout various regions, and boasts strong regulatory relationships and frameworks.
- The company’s financials are solid, marked by a double-digit increase in EBITDA and a sustainable dividend yield of 7.67%.
- Enel’s potential for both income and capital appreciation and highlights its positive performance in terms of EBITDA and dividend safety.
- Enel’s valuation appears attractive, trading at 9.4x P/E compared to its historical average of 14.5x, suggesting significant upside potential.
- Enel price target of at least €7.5/share.
- Enel, a major integrated utility company, has experienced significant growth
3. Catching Up With 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): In case you missed it, I take many input ideas for the “Chemical Markets & Stocks” from this newsletter SeekingAlpha
- YouTube: did you hear about Aliens? Check out this vid explaining it from the big bang.
- Instagram: Just in case you want to relax with History Memes, I use this account: historyinmemes
- TikTok: I’m pretty sure you are quite familiar with titrations… Here is a vid covering that!
- Twitter/X: I liked this tweet on the Chemical Industry Value Chain. Check it here.
Product of the Month
If you have an interest for Process Simulation, you’re likely going to find my “Aspen Plus – Bootcamp” Course worth checking out. This comprehensive course features 12 in-depth Case Studies, delving into the most pertinent topics in Process Simulation:
- Better Flowsheet manipulation and techniques
- Understand Property Method Selection and its effects on simulation results
- More than 15 Unit Operations that can be used in any Industry
- Model Analysis Tools required for process design
- Reporting Relevant Results Plot relevant data
- Analysis & Optimization of Chemical Plants
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
In a nutshell, let’s wrap up this month’s Chemical Industry highlights. It’s been a whirlwind of news and changes in the chemical landscape, especially for companies relying on global supply chains.
We’ve seen just how vital the supply chain is, affecting a wide range of related industries.
On the other side, big players in the chemical world keep on making headlines with acquisitions and mergers.
As we sign off for this month, know that we’re here to keep you in the loop with the latest in the chemical industry.
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!