The Weekly Catalyst

Feedstock Shifts In Focus, As North American Costs Broadly Inflate YTD
January 16, 2024
Companies Mentioned:
LyondellBasell, Invista, Dow, Enterprise Products, Methanex, Braskem, Oxy, Westlake, Shin-Etsu, Formosa, Orbia, Yara, CF Industries, Nutrien, LSB Industries
Commodities Mentioned:
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

The Weekly Catalyst

Feedstock Shifts In Focus, As North American Costs Broadly Inflate YTD

  • Feedstock Market Trends: North American petrochemical producers hold a sizable cost advantage compared to Europe and Asia. However, this advantage has shrunk YTD as its feedstock costs have increased relatively.
  • Chemical Market Trends: Global monomer and base chemical values, on average, rose WoW, with ethylene showing less support than its co-products. Methanol values declined with global natural gas prices.
  • Polymer Market Trends: Global polymer prices also reflect support WoW, with polyethylene (PE) spot prices in North America reflecting more support than Asia and Europe and outpacing domestic spot ethylene increases.
  • Agriculture Market Trends: US Ammonia prices have fallen compared to natural gas costs since late 4Q amid slow demand and its production advantage relative to Europe and Asia shrinking with ex-US natural gas prices.

Exhibit 1 – Chart of the Day: Chemical feedstocks have risen more YTD in North America relative to Asia and Europe.

Source: Bloomberg, C-MACC Analysis, January 2024

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