The Weekly Catalyst
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.
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