Daily Chemical Reactions

Stuck On You – US Contract Prices To Fall Relative to Mostly Lower Spot Levels In 4Q, Ethylene Discussed
October 11, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Shell, Nova Chemicals, Dow, LyondellBasell, Celanese, ExxonMobil, Denbury, Advent, Lanxess, Core Lithium, DuPont, Brenntag, Givaudan, Honeywell, Lotte Chemical, OMV, PKN Orlen, Posco Holdings, Sherwin-Williams, PPG, AkzoNobel, Solvay, Covia, Asahi Kasei, Borealis, Freyr Battery, Genox Recycling, Ineos Styrolution, Johnson Matthey, Vopak, Schlumberger, TC Energy, TotalEnergies, Aramco, Nexam Chemical, Infineum, Charbone

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

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