The Weekly Catalyst
Global Chemical Update – My Wrecking Ball
Key Points:
- US chemical producers benefit from feedstock relief WoW, which has so far been the positive story of 4Q22. A cost rebound into year-end could push margins below expectations based on current figures.
- US spot ethylene decreased 4% WoW, less than the USGC ethane spot price decline of ~13% WoW, pushing implied US margins higher though spot ethylene values reflect levels near YTD lows.
- US spot propylene prices increased the most WoW among global monomer values, rising 8% WoW though PGP prices are down 29% during the past 30 days. US propane prices also increased 4% WoW.
- Brent Crude and Ex-US Naphtha prices held up more than US natural gas and USGC ethane values WoW – a positive development for North American chemical producers relative to overseas peers.