The Weekly Catalyst
Global Chemical Update – Over the Hills and Far Away
Key Points:
- Covestro will put its world-scale MDI-polyurethane project on hold and keep its plant location considerations open. However, Europe appears ruled out, and it seems to favor Asia over the US.
- USGC ethane values increased the most WoW among global ethylene feedstocks. USGC natural gas also increased WoW relative to Brent Crude, reflecting a flatter global chemical production cost curve.
- US spot polymer-grade propylene increased relative to USGC propane values WoW, a welcomed plus for US PDH unit operators following a notable margin decline during the past six months.
- Corn, soybean, and canola prices were mostly unchanged at high levels WoW. While global ammonia prices were also generally unchanged, higher natural gas prices pinched producer margins.