Sunday, 26 March 2023 | 1 PM – 3 PM Central Time | Salon I
Petrochemical markets have been buffeted for several years by extremely strong forces including COVID-related trends, logistics constraints, energy price volatility, and geopolitical upheaval. 2023 begins with pessimistic expectations for key global economies, continued energy and political uncertainty, and overcapacity in many significant chemical markets. At the same time, the industry has been challenged to become more sustainable. Overcoming adverse market conditions, and addressing decarbonization and plastics circularity while continuing to deliver shareholder value are the industry’s defining challenges.
Join our industry experts as they provide an in-depth overview and describe the overarching outlook and specific trends in the olefins, polyolefins, aromatics, inorganics, and syngas sectors.
Salon I, Marriott Rivercenter Hotel
Dewey Johnson, Senior Vice President, Global Head of Chemical Market Analytics
Major Chemical markets are in a downcycle with an oversupply trough in 2023-2024 while facing a new world reality of disruptive forces. Winners and losers will be determined by how participants address climate emissions, plastics waste, and deglobalization of markets while managing through the fundamentals of these commodity chemical markets. Alternate pathways and potential outcomes will be highlighted as the future is influenced by path dependency but determined by interventions made along the journey.
Carlo Barrasa, Vice President, Energy Insights Team Lead
The turmoil caused by the Russia-Ukraine conflict has forced nations to reassess their energy strategies amid a more polarized geopolitical climate. Countries can no longer assume the energy transition will be facilitated by unfettered movements of raw materials and coordination of climate initiatives. Greater competition for resources and economic growth will prompt some countries to seek energy security at the cost of a long-term transition to low carbon sources. Yet other countries will attempt to accelerate their transition plans as a pathway to energy security. Join us as we discuss how this tension, between energy security and transition, will evolve.
Steve Lewandowski, Vice President, Global Olefins & Derivatives Team Lead & Joel Morales, Vice President, Plastics & Polymers
Unprecedented olefin/polyolefin capacity additions have led to global oversupply. While low cost producers are expected to be in a better position to handle trough market conditions, all regions are expected to see depressed margins for an extended period of time. Will we finally see significant market rationalization in high-cost regions? Can low-cost regions efficiently move their products to higher cost regions or will global shipping constraints negate competitive cost advantages? These issues and more will be discussed.
Duncan Clark, Vice President, Global Aromatics & Fibers Team Lead
Competition for aromatics feedstock with the gasoline blending pool was intense during 2022 as reformate, mixed xylenes and toluene blend values surged, leading to negative extraction margins for BTX. At the same time, excess capacity in Asia failed to be placed into the market due to mainland China’s weak economic performance and aromatics margins suffered as a result. Join us as we discuss whether the aromatics’ market drivers will improve in 2023 and how they are likely to perform.
Hazel Kreuz, Vice President, Global Inorganics Team Lead
Chlor-vinyls capacity overbuild translated to generally poor industry returns in the first two decades of this century. However, the capacity tide has changed. While some petrochemicals are facing near-term excess capacity challenges, chlor-vinyls demand roared back after the COVID recession, revealing that demand had fundamentally grown into the previous excess capacity and elevating returns to re-investment levels. But the party was short-lived in some parts of the globe as the twin demons of high energy costs and inflation-induced interest rate hikes attacked European electricity prices and global construction demand, respectively. This discussion will explore the near- and mid-term projections for the global chlor-alkali and vinyls industries, with commentary on special considerations by region that are expected to steer the course of these two related markets as they power through the challenges of a potential new recession.
Mike Nash, Vice President, Global Syngas Team Lead | Americas Acetyls Lead
Despite a general increase in demand from the COVID-19 lull in mid-2020, methanol markets are facing economic pressure from high feedstocks prices and threats to growth from the end of the first wave of MTO capacity build in China and the electrification of the vehicle fleet. Shorter-term demand may take a hit as elevated consumer prices and higher interest rates constrain consumer spending. But there are grounds for optimism in the longer-term outlook, as low-carbon methanol projects continue to be announced and as methanol as a clean-burning, sulfur-free marine bunker fuel continues to demonstrate a significantly more mainstream future than previously anticipated.
Senior Vice President, Global Head of Chemical Market Analytics Chemical Market Analytics by OPIS
Read BioVice President, Global Aromatics & Fibers Team Lead Chemical Market Analytics by OPIS
Read BioVice President, Global Inorganics Team Lead Chemical Market Analytics by OPIS
Read BioVice President, Global Olefins & Derivatives Team Lead Chemical Market Analytics by OPIS
Read BioVice President, Global Syngas Team Lead | Americas Acetyls Lead Chemical Market Analytics by OPIS
Read BioVice President, Energy Insights Team Lead Chemical Market Analytics by OPIS
Read BioVice President, Global Plastics & Polymers | North America Polyethylene & Polypropylene Chemical Market Analytics by OPIS
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