The Weekly Catalyst
- Energy companies looking to push their value chains downstream into petrochemicals through M&A should take advantage of weak conditions in 2023 before a likely upturn in many polymer profit cycles.
- North American chemical producers enjoy a sizable cost advantage relative to Asia and NW Europe. We flag the WoW drop in US natural gas and USGC ethane relative to Brent Crude and Ex-US naphtha.
- US ethylene producers are profitable across all primary feedstocks, with ethane moving back into a cost-advantaged spot WoW relative to propane. Asia and European cracker margins remain negative.