Stuck On You – US Contract Prices To Fall Relative to Mostly Lower Spot Levels In 4Q, Ethylene Discussed

Daily Chemical Reaction

Stuck On You – US Contract Prices To Fall Relative to Mostly Lower Spot Levels In 4Q, Ethylene Discussed

Key Points:

• US September contract ethylene reflects an above-avg. premium relative to current US, NW Europe, and Asia spot values, suggesting downward pressure in 4Q22.
• The recent decline in global natural gas prices has spurred some sector optimism about ample availability, though we continue to see significant risks this winter.
• US spot monomer prices, on average, reflect levels near their 12-month lows, and we discuss PPG business update comments and weak European Chlor-alkali production.
• We offer feedback from Day 1 at the Hydrogen America summit, discuss why potential ExxonMobil interest in Denbury makes sense, and flag weak recycled resin markets.
• We provide a global view of freight rates, showing a downward trend in China-to-US rates from YTD highs, and highlight continued US dollar strength relative to the Euro.

See PDF below for all charts, tables and diagrams