The Weekly Catalyst
Global Chemical Update – Sad But Likely True
Key Points:
- North American petrochemical products, on average, reflect QoQ margin improvement in 1Q23, but increasing production and squishy demand suggest lower margins for most in 2Q23 relative to its start.
- Asia and NW European chemical producers saw cost pressure WoW relative to North America. We flag the WoW uptick in Brent Crude and Ex-US naphtha compared to US natural gas and USGC ethane.
- We discuss the sizable decline in US propylene prices WoW, pinching PDH margins, and suggesting weakness in polypropylene prices ahead. We also flag rising Asia methanol prices relative to US levels.