Global Chemical Update – That Spells Relief

Key Points:

US natural gas and USGC ethane feedstock values declined more than Ex-US naphtha and Brent crude and outpaced chemical prices lower WoW, reflecting benefits for domestic chemical producers.
Global polymer price shifts were mixed WoW, with declines broadly reflected in European markets. US and Asia polymer prices show more support, especially in polyethylene and polyvinyl chloride.
Spot US ethylene margins based on US ethane feedstock are positive and improved WoW, while ethylene production in Europe and Asia still reflects negative cash margins amid myriad factors.
Global ammonia prices were higher on average WoW, led by strength in NW Europe, a plus for US producers, such as Nutrien and CF Industries, amid still high crop prices and advantaged feedstock costs.