The Weekly Catalyst
Global Chemical Update – Closing Time?
Key Points:
- The global polymer market dynamic suggests producers with both European and US production will shutter European assets in favor of US imports to the region – a positive for US polymer producers.
- US natural gas prices have plummeted relative to Brent Crude since 3Q22, pushing the crude-to-gas ratio to its highest level since early 2013 in support of the US chemical cost advantage on a global scale.
- US and Asia spot polymer and monomer prices moved higher WoW, while NW Europe values, which reflect premiums to the global average, declined. Polypropylene reflected the most strength WoW.