The Weekly Catalyst
Global Chemical Update – Stone Rolling
- 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.