The Weekly Catalyst
Global Chemical Update – A Push & Shove Market
- US polymer values on avg. rose again WoW relative to overseas markets, but relative prices and upstream indicators increasingly point to a reversal ahead – we notably view US PE levels relative to Asia (Ex. 33) with caution.
- Two other items: a) Asia PVC prices outpace US values higher WoW – a plus for USGC producers, such as Westlake; and b) Rising US ethylene values are spurring regional non-integrated derivative producer price hikes, per our view, and we discuss the recent VAM price hike nominations from Celanese.
- European and Asian ethylene margins are declining quickly and given the export nature of the US business, without further relative feedstock support, the US should follow.
See PDF below for all charts and tables