Daily Chemical Reactions

Price Check! – Petrochemical Contract & Spot Market Disconnects Occur Amid Volatility, Eventually Normalize
August 9, 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, Dow, Nova Chemicals, ExxonMobil, Baystar Polymers, Chevron Phillips Chemical, Brenntag, Berry, Solvay, Idemitsu, DIC, Osaka Soda, Kureha, Sakai Chemical, IFF, Hikal, Enbridge, Celanese, ICL, Albemarle, Lanxess, American Vanguard, Nutrien, BASF, Bayer, Corteva, FMC, Evonik, Borouge, Borealis, Piedmont Lithium, Ballard Power Systems, PCC Hydrogen, Danimer Scientific, Ways2H, ESS Tech, UPS, Continental Tires, The AZEK Company

Daily Chemical Reaction

Price Check! – Petrochemical Contract & Spot Market Disconnects Occur Amid Volatility, Eventually Normalize

Key Points:

  • US contract polyethylene prices seem set for another sizable negative non-market adjustment based on spot price trends – still, US producers have nominated contract price hikes for August.
  • US PE producers typically nominate prices higher throughout hurricane season so they can quickly implement upticks if outages occur – higher oil or outages are needed to spur prices.
  • We discuss the Brenntag 2Q23 report and market outlook, the ICL report and our findings of rising elemental bromine values in China and highlight takeaways from American Vanguard.
  • Berry continues to push its sustainability efforts in plastics, renewable power prices in Europe vary significantly, creating advantaged pockets, and we discuss a new hydrogen technology.
  • We discuss falling prices in China, lower consumer price inflation expectations for Asia relative to the US and Europe again in 2023 and highlight findings from the Continental Tire 2Q update.

See PDF below for all charts, tables and diagrams


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