Global Chemical Update – Smoke Gets In Your Eyes

The Weekly Catalyst

Global Chemical Update – Smoke Gets In Your Eyes

Key Points:

• Spot intermediate chemical raw material spreads/implied margins do not always give clear regional profit pictures. Elevated European PVC-to-EDC spreads help show its issues relative to the US and Asia.  
• US spot polymer prices in the US and Asia rose WoW relative to feedstock costs. In contrast, the opposite occurred in Europe – European price premiums are contracting compared to the US and Asia.
• Global energy and chemical feedstock costs were mixed WoW, with the upward trend in the North American cost advantage relative to Asia and Europe stalling after considerable gains since late 2022.