Daily Chemical Reaction
Facing The Sea – North American PE Exports To Likely Set Record In 2023, Cost Curve To Determine Profitability
- North American polyethylene (PE) exports will likely hit a record level in 2023, enabled by its sizable cost advantage relative to Asia and Europe—global PE markets to reflect trough setting.
- We flag significant moves by Aramco to push its business further downstream in refining and petrochemicals, with an array of growth projects underway for development in China.
- We discuss the importance of a steep global ethylene cost curve for US polyethylene exporters and add to our thoughts about energy and chemical producers combining to extend value chains.
- We discuss the challenges to producing green chemicals, specifically ammonia in Europe, as it appears to be under review at Adnoc. We also provide thoughts on growth in RNG markets.
- China has boosted economic stimulus to spur growth, which appears highly needed in light of Maersk and SABIC commentary on demand. A global demand surge seems unlikely near term.
See PDF below for all charts, tables and diagrams