Daily Chemical Reaction
What’s Your Crude View!? Most Global Chemical Markets Face Oversupply; Higher Crude Provides Price Support
- Recent crude oil price strength helped lift global chemical prices amid oversupplied conditions in 3Q23, but absent further improvement, it’s unlikely to spur prices much higher into 4Q23.
- We discuss Braskem’s decision to idle polypropylene (PP) production at a Northeast US facility and why it differs from the recent LyondellBasell closure in Italy, which is less likely to restart.
- Following its recent run-up, crude oil prices reflect support relative to US natural gas, but NW Europe and Asia natural gas prices have recently increased – another negative for these regions.
- Low virgin polymer prices are a headwind for recycled resin markets, and we highlight LEGO’s recent decision to shift from its R-PET content efforts to evaluate other sustainable materials.
- We also discuss significant headwinds facing a European shift away from China as a trade partner, recent relative value movements in the USD, and provide a US crop price update.
See PDF below for all charts, tables and diagrams