Daily Chemical Reaction
180 (Lifestyle) – US Propylene Prices Fall Amid Signs of Greater Supply Ahead, Polypropylene Support Weakens
Key Points:
- Myriad factors have pushed US polymer prices higher YTD. We discuss recent movements in spot polypropylene relative to propylene values, with indications signaling lower margins ahead.
- We highlight developments in US oil exports and production as strengthening our case for the benefits of downstream chemical expansions as a viable demand outlet for the associated gas.
- We flag movements in US spot propylene, ethylene, and benzene but focus mostly on the US propylene market following its sizable recent price drop that is negative for derivative prices.
- We discuss the Occidental view of direct air capture, which makes the most economic sense for enhanced oil recovery. The oil price is the primary determinant of its overall economics.
- We discuss the IMF economic outlook relative to modestly higher estimates issued at the start of the year. We flag a few items suggesting that global economic growth headwinds are stiff.
See PDF below for all charts, tables and diagrams