Global Polypropylene Oversupply – European Cuts Begin, But Far From Enough To Offset Asia Additions     

Daily Chemical Reaction

Global Polypropylene Oversupply – European Cuts Begin, But Far From Enough To Offset Asia Additions

Key Points:

• European polypropylene prices are at a premium to the US and Asia, but integrated producer profit in this region is among the lowest globally. Production cuts are happening, not enough yet.
• Crude oil prices rose at the start of the week relative to US natural gas, pushing this feedstock ratio near five-year highs and notably higher relative to Ex-US naphtha to USGC ethane spreads.
• Singapore naphtha prices remain notably below their five-year average compared to Brent Crude, showing oversupplied conditions poised to favor Asia producers more than Europe.
• We highlight struggles emerging for a Canadian oil sands project seeking to capture carbon, GHG emissions by major shipping fuel type and show recent trends in EU and UK CO2 prices.
• German companies take a cautious view of price trends, the Baltic Exchange Index reflects rates near the low end of the five-year range, and we also flag recent US Dollar strength.

See PDF below for all charts, tables and diagrams