The Weekly Catalyst
Global Chemical Update – Stuck on You
- North American ammonia and methanol margins have contracted YTD, putting downward pressure on producer equities, though we see the medium-term potential for much tighter markets for both.
- The global chemical production cost curve shifted WoW favoring European and Asia producers, as crude oil prices fell relative to North American natural gas, likely emboldening some Asian startups.
- Global polymer prices, on average, fell WoW, led by declines in Asia, a headwind for North American export price support, and adding to our 2Q23 concerns that domestic margins will fall relative to 1Q.