Daily Chemical Reactions

What’s Your Crude View!? Most Global Chemical Markets Face Oversupply; Higher Crude Provides Price Support
September 26, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Braskem, LyondellBasell, Petronas, Indorama Ventures, Shell, Dow, QatarEnergy, Lego’s, Ford, Marubeni, REC, Stellantis, Aramco, Toray, Mitsui O.S.K Lines, Idemitsu Kosan, Evonik, Maire Tecnimont, Macquarie, Bayer, SK Ecoplant, Honeywell, ZEMBA RfP, Enbridge, Glencore, BASF, Galp, Impact Coatings, Univar Solutions, Safic-Alcan, Lanxess, Orlen, Li-Cycle, EDF Renewables, Seoul Semiconductor, Carbon Streaming, Energy Transfer, Crestwood, ,

Daily Chemical Reaction

What’s Your Crude View!? Most Global Chemical Markets Face Oversupply; Higher Crude Provides Price Support

Key Points:

  • 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


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