The Weekly Catalyst

The Weekly Catalyst

Global Chemical Update – All Too Well

Key Points:

• Global polymer prices, on average, fell WoW, with feedstock costs outpacing polymer prices lower in Asia and Europe, supporting an Ex-US supply response to coincide with rising domestic production.
• Integrated polyethylene (PE) producers in Asia show a profit for the second consecutive week after posting negative margins on average since 4Q21 – we view this as a concern for US PE export values.
• We hold a more constructive view of polyvinyl chloride (PVC) relative to PE or polypropylene (PP). US PVC prices are below Asia levels, and higher competitive barriers surround its integrated producers.