The Weekly Catalyst
- Global chemical sector indicators suggest margin pressure in 2H22, as production cost curves flatten and prices reflect downward pressure. Agriculture remains a notable sub-sector bright spot.
- Ex-US naphtha values fell to a YTD low relative to USGC ethane values last week, depicting a flatter global ethylene cost curve at the feedstock level. Europe’s naphtha values fell relative to Asia.
- US spot ethylene, propylene, and benzene values reflect support WoW, but all three reflect sizable declines relative to YTD highs. China polymer prices mostly moved lower with feedstocks WoW.
- Macro indicators for farmer income improved WoW. Corn, soybean, and canola prices increased WoW, with US corn prices rising more than soy, though fertilizer price movements varied globally.