Global Chemical Update – Ready or Not

The Weekly Catalyst

Global Chemical Update – Ready or Not

Key Points:

• Global polymer markets reflect WoW support amid production cuts, higher Ex-US costs, and rising optimistic views on China demand. North American producers see the most significant WoW benefits.
• Brent Crude and Ex-US naphtha values reflect significant strength WoW relative to US natural gas and USGC ethane, broadly favoring North American petrochemical producer economics compared to Asia.
• North American Chlor-Vinyl producers are among the most significant WoW beneficiaries as costs fell and PVC prices increased globally. 4Q22 production cuts in this chain limit the absolute benefits.