Daily Chemical Reactions

Down Down: Chemical and Polymer Prices Slide – A Premium Margin But No More Status Quo in The US
June 13, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Bunge, Viterra, Shell, Enterprise Products, Navigator Holdings, Braskem, Unipar, NET Power, Petronas Chemicals, Unigel, Asahi Kasei, Mitsui, Resonac Holdings, Thyssenkrupp, TotalEnergies, BASF, Wacker, LG Chem, Bain Capital, Porous Laboratories, AkzoNobel, Ineos, AdvanSix, PTTGC America, Celanese, Uniper, Toray, ExxonMobil, LG Electronics, Lanxess, Air Products, Iberdrola, Venture Global, Glencore, Maersk, OCI Global, Eni

Daily Chemical Reaction

Down Down: Chemical and Polymer Prices Slide – A Premium Margin But No More Status Quo in The US

Key Points:

  • Western polymer prices reflect a premium relative to monomers compared to Asia, reflecting more price (and margin) risk for Western producers in 2023 as Asia capacity additions mount.
  • Global ethylene and propylene prices continued their downward 2Q23 trend last week and outpaced some polymer movement – the overall market trend reflects a downward slope.
  • We discussed the Shell chemical business in our Sunday thematic, and we add to our views before its investor day event tomorrow, as many expect a “shareholder friendly” event.
  • More high-capacity factor clean energy is needed to ensure energy security and reach most zero emission targets – we discuss the NET Power model and the benefits it brings consumers.
  • Consumer price inflation in the US moderated in May, and we suspect that it could result in a rate hike pause after a significant period of increases – stiff headwinds still face US consumers.

See PDF below for all charts, tables and diagrams

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