Daily Chemical Reaction
- Global petrochemical markets are oversupplied despite recent operating rate cuts, suggesting any improvement in profitability will trigger a supply response near term.
- European natural gas prices have surged relative to US Henry Hub gas values, which remains at an above-average price premium to most other North American markets.
- Despite collapsed production rates in some major regions, we highlight no-to-low global petrochemical producer profits suggesting conditions remain oversupplied.
- We argue that the European border tax on carbon is an item the region does not need, as its manufacturers face much more significant challenges than relative carbon costs.
- We discuss refined petroleum product tanker rates, recent movements in the Baltic Exchange Dry Index, and the shortening timeline for Chinese products to reach the US.
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