The Weekly Catalyst

Global Chemical Update – Heartache on the Dance Floor
July 25, 2022
Companies Mentioned:
Nova Chemicals, Enterprise Products, Dow, LyondellBasell, Braskem, Ineos, ExxonMobil, Formosa Plastics, Pinnacle Polymers, Nutrien, CF Industries, LSB Industries
Commodities Mentioned:
Report Sections:
Feedstocks & Energy, Global Ethylene Cracker, Spot Profit Analysis, Ethylene & Propylene, Price Trends, Polyethylene Review, Other Relevant Global Polymer Trends, Other Relevant Global Chemical Trends, Global Chemical Data Sheets, Flow Charts & Other Ancillary Data

The Weekly Catalyst

Global Chemical Update – Heartache on the Dance Floor

Key Points:

  • Global commodity chemical producers faced headwinds WoW, as monomer and polymer prices on average fell relative to feedstock costs. Western markets saw the most pronounced price declines.
  • In energy & feedstock markets, U.S natural gas and USGC ethane notably increased relative to Brent Crude and Ex-US naphtha values – this setting reflects cost headwinds for U.S. producers.
  • A stand-out item in commodity chemical markets is the significant U.S. polypropylene (PP) price decline WoW relative to overseas markets, U.S. polymer grade propylene (PGP), and U.S. propane.
  • U.S. crop prices continue to reflect downward pressure, and North American fertilizer margins broadly shrunk WoW amid a combination of lower prices and higher production costs WoW.
  • We also flag our research, A Change Is Gonna Come – Commodity Chemical Availability Improvements Are Now Well Anticipated, And That’s An Issue, that argued U.S. commodity chemical producers facing a tough 2H22 is now the consensus view, and positive surprise risk lacks appreciation.

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