Daily Chemical Reactions

180 (Lifestyle) – US Propylene Prices Fall Amid Signs of Greater Supply Ahead, Polypropylene Support Weakens
April 11, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
LyondellBasell, ExxonMobil, Dow, Braskem, Formosa Plastics, Nova Chemicals, Inter Pipeline, Alpek, Enterprise Products, Invista, Occidental, AdvanSix, Air Products, Asahi Kasei, BASF, DSM, Evonik, Shell, Kinder Morgan, Tellurian, OMV, Arkema, Vopak, Glencore, Calibre Chemicals, Harima Chemicals, Sinopec, Neogen, Larsen & Toubro, Chambal Fertilisers & Chemicals, Hanwha Solutions, Valero, Green Plains, BP, Tesla, Emrgy

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

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