The Weekly Catalyst
Global Chemical Update – Stone Rolling
Key Points:
- Weakening chemical derivative demand is working against the ability to raise prices in some product chains to offset higher input costs YTD. We discuss global methanol and chlor-alkali markets.
- US natural gas and USGC ethane fell relative to Brent Crude and Ex-US naphtha values WoW, providing cost relief to US chemical producers that outpaced downstream price drops in some chains.
- We discuss the potential for further global supply chain disruptions from Typhoon Muifa in Asia and a railroad strike in the US, which could spur higher prices in some areas due to lower volume.
- US ethanol margins declined WoW, corn prices increased relative to soybeans, and fertilizer prices rose relative to feedstock costs. Our constructive view of the agriculture sector remains intact.
Client Login
Learn About Our Subscriptions and Request a Trial
Contact us at cmaccinsights@c-macc.com to gain full access and experience our services!
