Global Chemical Update – That Spells Relief! (For Some!)

The Weekly Catalyst

Global Chemical Update – That Spells Relief! (For Some!)

Key Points:

• US polyethylene (PE) and polyvinyl chloride (PVC) integrated margins have benefited from price support and cost relief in 1Q23 relative to 2H22. Polypropylene (PP) margins remain under pressure.  
• NW Europe polymer prices reflect a falling premium to US (and Asia) levels, as the US exports its sizable cost advantage and Asia exports its oversupply to the detriment of European producer margins.  
• US ethylene production based on ethane feedstock reflected more than a US$0.10/lb. margin last week, while all other US feedstocks and NW Europe and Asia naphtha reflect negative margins.