The Weekly Catalyst

Global Chemical Update – Ammonia Remains A Winner
October 3, 2022
Companies Mentioned:
Nutrien, CF Industries, LSB Industries, Koch Fertilizer, AdvanSix, Dow, LyondellBasell, Westlake, ExxonMobil
Commodities Mentioned:
Report Sections:
Feedstocks & Energy, Global Ethylene Cracker, Spot Profit Analysis, Ethylene & Propylene, Price Trends, Polyethylene Review, Other Relevant Global Polymer Trends, Other Relevant Global Chemical Trends, Global Chemical Data Sheets, Flow Charts & Other Ancillary Data

The Weekly Catalyst

Global Chemical Update – Ammonia Remains A Winner

Key Points:

  • Domestic commodity chemical producers benefit from significant cost relief in September. We think the ammonia market could hold the profit margin benefits longer than most amid tight conditions.
  • US natural gas and USGC ethane feedstock values have declined 27% and 35% during the past month, while Brent crude is 2% higher and Ex-US naphtha is only 0.7% lower during this period.
  • Global polymer prices were primarily unchanged WoW, though US price premiums lessened relative to Asia. Global monomer prices were mostly lower, implying global polymer production cutbacks.
  • Spot US ethylene margins WoW based on US ethane and propane feedstock are positive. In contrast, 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 the US and NW Europe. This is a plus for US producers amid still elevated crop prices and advantaged domestic feedstock costs.   

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