The Weekly Catalyst
- The US holds a sizable ethylene production cost advantage relative to NW Europe and Asia, a plus for exports despite Ex-US ethylene values near multi-year lows compared to USGC ethane costs.
- USGC ethane values increased relative to Ex-US naphtha values WoW, modestly flattening the global ethylene cost curve at the feedstock level. US natural gas also rose compared to Brent Crude.
- NW Europe ethylene and propylene values significantly declined WoW, while regional polymer markets reflect less downward pressure. This general development is a plus for US chemical exporters.
- Macro indicators for farm-input sellers moderated WoW. Corn, soybean, and canola prices declined WoW, US corn prices declined less than soy, and US fertilizer prices on avg. also declined.