Daily Chemical Reaction
Slow Fade – Macro Developments To Shift Global Chemical Market Structure & Form, But Not Quickly
Key Points:
- We discuss North American methanol contract premiums relative to spot levels and movement toward monthly from quarterly contracts in Europe amid market volatility.
- We comment on the potential impact on naphtha production as global EV markets advance, and we display recent movements in NW Europe naphtha relative to LPG.
- We flag movements in NW Europe methanol contracts, show the spread between US and NE Asia methanol prices, and display the US cost advantage relative to Asia.
- We highlight the YoY decline in recycled resin prices, which put mechanical recyclers in a tough spot to attract growth capital, and flag multiple clean energy updates.
- US used vehicle prices have fallen from YTD highs but reflect support from 4Q22 lows, which we consider with the disappointing CarMax market update and new car trends.
See PDF below for all charts, tables and diagrams