The Weekly Catalyst

Global Chemical Update – Can I Count on You (Demand)?
August 21, 2023
Report Sections:
Feedstocks & Energy, Global Ethylene Cracker, Spot Profit Analysis, Ethylene & Propylene, Price Trends, Polyethylene Review, Other Relevant Global Polymer Trends, Other Relevant Global Chemical Trends, Global Chemical Data Sheets, Flow Charts & Other Ancillary Data
Companies Mentioned:
Enterprise Products, LyondellBasell, SABIC, ExxonMobil, Formosa Plastics, Sinopec, PetroChina, Braskem, Axalta, Invista, Celanese

The Weekly Catalyst

Global Chemical Update – Can I Count on You (Demand)?

Key Points:

  • US August propylene contracts face modest downward pressure MoM based on spot trends, and end-market indicators suggest ample supply in 2H23/2024, absent production cuts or an energy shock.
  • Asia spot polypropylene (PP) prices relative to polymer-grade propylene (PGP) have fallen notably since 2019, while US and European PP-to-PGP spreads are higher and reflect greater risk in 2H23/2024.
  • Polypropylene (PP), and other propylene derivatives, have notable demand ties to the auto market. While auto production has risen in 2023 YTD relative to 2022, we view a 2024 slowdown as likely.

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