Daily Chemical Reactions

Global Polypropylene Oversupply – European Cuts Begin, But Far From Enough To Offset Asia Additions     
September 6, 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, Braskem, Borealis, Total, SABIC, Repsol, ExxonMobil, Ineos, Univar, Chevron, Technip Energies, ConocoPhillips, Sinopec, Trecora, JERA, Henkel, BASF, Dow, Nexam Chemical, Acwa Power, Albemarle, Berry Global, Petronas, BP, Diamondback, Mitsui, Equinor, Shell, Enbridge, Avery Dennison, Encino Environmental, Danone North America, Thyssenkrup, LG Energy, Advent Technologies, Carbon Streaming, OPAL Fuels, FREYR Battery

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

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