Daily Chemical Reactions

One Thing At A Time – US Polymer Premiums Have Mostly Dissipated, Contract Premiums Now In Focus
December 21, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Westlake, Olin, Oxy, Shin-Etsu, Orbia, Formosa Plastics, OMV, Adnoc, Chandra Asri, Mitsubishi Gas Chemical, Mitsubishi Chemical, European Lithium, Woodside, Air Liquide, Umicore, Lummus, Novonix, LG Chem, 3M, Asymchem, NextDecade, Topsoe, Hyundai Engineering, ExxonMobil, TotalEnergies, Engie, LifeZone, Fortescue Metals, Iberdrola, Franklin Templeton, Perstorp, FedEx, Nike, Dole, Luxfer, Salesforce, QuantumScape

Daily Chemical Reaction

One Thing At A Time – US Polymer Premiums Have Mostly Dissipated, Contract Premiums Now In Focus

Key Points:

  • As chemical product availability increased, US spot polymer premiums relative to Asia mostly dissipated in 2H22. Domestic contract premiums are likely the next to drop.
  • We compare Singapore Naphtha levels to Brent Crude and USGC Ethane to US Natural Gas to illustrate a surplus of chemical feedstocks relative to demand in late 2022.
  • We show recent movements in US Polyvinyl Chloride (PVC) relative to Asia, following news of production volume drops abroad, and highlight global Benzene price trends.
  • We flag news from Enviva, discuss the difference between sustainable versus low-carbon, as they are not the same, and note our positive view on clean-energy metals.
  • We show the decline WoW in China-to-Europe freight rates, which led global container freight rates further lower, on average, toward 2017-2019 levels, and flag FedEx news.

See PDF below for all charts, tables and diagrams

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