The Weekly Catalyst
- Global chemical sector profit outlooks for 2H22 are trending increasingly negative. We add to our general market views and discuss why the profit outlook downgrade from Covestro is worth notice.
- USGC ethane values decreased relative to Ex-US naphtha values WoW, modestly steepening the global ethylene cost curve at the feedstock level. US natural gas also fell compared to Brent Crude.
- US spot benzene values fell WoW relative to US spot propylene and ethylene values, with all three reflecting MoM declines. Global polymer values face downward pressure relative to feedstocks.
- Macro indicators for farm-input sellers improved WoW. Corn, soybean, and canola prices leaped higher WoW, with US corn prices rising more than soy, and UA fertilizer prices on avg. also increased.