The Weekly Catalyst
Global Chemical Update – Stay Selective
Key Points:
- US ammonia prices held up WoW, while natural gas prices fell, spurring WoW strength in domestic margins. The global cost curve favors integrated US fertilizer margin support at elevated levels.
- Global polymer prices were unchanged on average WoW. US spot polypropylene (PP) reflects the largest price drop WoW relative to overseas markets, having fallen ~45% during the past three months.
- US propylene prices declined the most WoW among global monomer values, falling 11% WoW to reflect a 42% lower level during the past three months. US propane prices also declined WoW.
- Brent Crude and Ex-US Naphtha prices decreased more than US natural gas and USGC ethane values WoW – a negative development for North American chemical producers relative to overseas peers.