Daily Chemical Reactions

Squeeze Box – Global Polymer Markets To Loosen, Most Likely Push US Prices Down More Than Costs  
August 12, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Westlake, Occidental, Orbia, Formosa Plastics, Shin-Etsu, Olin, LyondellBasell, Braskem, Dow, Nova Chemicals, Heartland Polymers, K+S, Nutrien, Mosaic, LSB Industries, CF Industries, Kuraray, ExxonMobil, Bodal Chemicals, Sumitomo Seika, Shell, Hikal, Kao, Excelerate Energy, Ceres Power, Rivian, Mol, Enviva, Repsol, Williams, Borealis, Avient, Advent Technologies, BASF, Phillips 66, Chevron

Daily Chemical Reaction

Squeeze Box – Global Polymer Markets To Loosen, Most Likely Push US Prices Down More Than Costs  

Key Points:

  • US polymer prices have declined from their YTD highs but most remain well above 2019 levels. Further 2H price declines are likely, but a similar cost retreat is not.   
  • US natural gas prices are well below NW Europe and Asia levels but reflect a multi-year high relative to Alberta levels – a plus for some Canadian chemical producers.
  • Braskem expects lower polypropylene (PP) prices relative to propylene and lower gas-based polyethylene (PE) spreads QoQ in 3Q – we view PP profit as most at risk.
  • We highlight Braskem efforts to invest in various clean-energy and sustainable business lines, an ongoing industry trend, and discuss delays in solar projects.
  • We flag the downward trend in US 10yr gov’t bond rates since 1980, a positive development for asset values, and we discuss North American rail traffic trends.  

See PDF below for all charts, tables and diagrams

Client Login

Learn About Our Subscriptions and Request a Trial

Contact us to gain full access and experience our services!

Request a Free Trial

Archives