The Weekly Catalyst
Global Chemical Update – Clean Material Divergence
Key Points:
- The C-MACC Clean Energy Minerals Monthly Price Index improved in December, and we foresee continued support into 1H23 as we do not think supply improvements can keep pace with demand.
- Global polymer prices WoW were broadly unchanged, though we find more strength entering 2023 in Asia and Western Europe than North America, which is a general plus for US export prices.
- Brent Crude and Ex-US naphtha values increased WoW relative to US natural gas and USGC ethane, pushing North American chemical producer profit relative to peers abroad in most product chains.
- Macro indicators for farm-input sellers rose Corn values moved higher relative to soybeans, and ammonia-based fertilizer prices, on average, were unchanged though margins improved.