The Weekly Catalyst

Global Chemical Update – Candle In The Wind
November 21, 2022
Companies Mentioned:
Dow, LyondellBasell, ExxonMobil, Formosa Plastics, CP Chemical, Shell, Nova Chemicals, Flint Hills, Enterprise Products, Nutrien, CF Industries, LSB Industries
Commodities Mentioned:
Report Sections:
Feedstocks & Energy, Global Ethylene Cracker, Spot Profit Analysis, Ethylene & Propylene, Price Trends, Polyethylene Review, Other Relevant Global Polymer Trends, Other Relevant Global Chemical Trends, Global Chemical Data Sheets, Flow Charts & Other Ancillary Data

The Weekly Catalyst

Global Chemical Update – Candle In The Wind

Key Points:

  • Global polymer prices, on average, step lower WoW relative to feedstocks, pushing chemical sector profit lower WoW. We discuss why a near-term sector profitability rebound is unlikely.
  • Despite a weak near-term chemical sector profit setting, we add to views put forth in our Sunday research discussing the push among oil and midstream energy companies to expand in this area.
  • USGC ethane values held up WoW relative to Ex-US naphtha values WoW. However, US natural gas prices significantly rose compared to Brent Crude WoW, suggesting a flatter global chemical cost curve.
  • Macro indicators for farm-input sellers showed support WoW, as corn, soybean, and canola prices held up WoW. Ammonia values also showed support but lower margins due to higher natural gas costs.  

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