Global Chemical Update – Compressing the Spring?

The Weekly Catalyst

Global Chemical Update – Compressing the Spring?

Key Points:

• North American ammonia and methanol spot prices have decreased YTD. We think recent margin pressure will work to delay capacity expansions, setting up a period of much tighter conditions ahead.
• We discuss rising optimism toward methanol and ammonia use beyond their traditional derivatives and their role in energy transition lacking appreciation relative to commodities with more direct ties.
• Global polymer values, on average, declined WoW, though North American chemical feedstock costs modestly fell relative to Asia and Europe. European producers faced the most headwinds WoW.