The Weekly Catalyst
Global Chemical Update – Landslide
Key Points:
- The global commodity chemical sector faces considerable margin headwinds into year-end as feedstock costs rise, while we view lower volume as the primary factor poised to hurt specialty markets.
- Global polymer prices, on average, declined WoW, with polypropylene (PP) in Asia posting the most notable decrease in value, while polyethylene (PE) prices in Europe saw the most significant increase.
- US spot ethylene cracker margins based on ethane feedstock registered a slight profit last week, posting the highest profit level among regions, with all others reflecting losses on average.
- 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.