2023 Chemical Industry Outlook (Deloitte)

Summary

• Fifteen technologies can abate 90% of industry emissions, and the pace is accelerating.p.3
• Spot prices at the Dutch Title Transfer Facility averaged €99/MWh in the first half of 2022, compared to €22/MWh a year earlier.p.4
• About 70 global chemical companies have net-zero or carbon-neutrality targets set for 2050.p.5
• EV/EBITDA multiples for the global chemical industry have normalized to historical patterns around 8–10X.p.6
• 55% of chemical manufacturers reported that port-related delays and congestion have worsened since Q3 2021.p.7

Key insights

1. The Japan-Korea Marker spot LNG benchmark was $52 per MMBtu in July 2022, more than triple the level in July 2021.p.4
2. The US Federal Reserve has increased rates by more than 300 basis points to control inflation.p.4
3. Chemical producers need to deliver on emissions reduction goals for 2030, starting with Scope 1 and 2 emissions.p.5
4. 39% of chemical manufacturers reported that rail transportation delays and service challenges have worsened since Q3 2021.p.7
5. Pre-pandemic global exports for the chemical industry were $2.1 trillion.p.7
6. Customers are on average 34% more likely to buy and 32% more likely to renew a contract with leading B2B suppliers that master customer experience.p.8
7. Deloitte surveyed over 100 US executives and senior leaders in August 2022.p.2