The Weekly Catalyst
Global Chemical Update – Do You Love As Good As You Look?
- US monomer (and polymer) prices reflect much more support than feedstock costs during the past 30 days, implying margin increases for chemical producers. Low run rates will likely limit the benefit.
- US natural gas and USGC ethane value declines have notably outpaced Crude and Ex-Naphtha value weakness since mid-4Q22 – a plus for North American chemical producers relative to Europe and Asia.
- US spot polymer prices, on average, WoW were essentially unchanged, while we find strength in Asia and weakness in NW Europe. Asia PVC values posted the most improvement WoW, per our model.