The Weekly Catalyst

Global Chemical Prices Mostly Rise With Costs WoW, US Margins Shrink
January 29, 2024
Companies Mentioned:
Dow, ExxonMobil, Chevron Phillips Chemical, Nova Chemicals, Olin, Oxy, Westlake, Shin-Etsu, Formosa, Orbia, Yara, CF Industries, Nutrien, LSB Industries
Commodities Mentioned:
Crude Oil, Natural Gas, Ethane, Propane, Naphtha, Ethylene, Propylene, Benzene, Polyethylene, Polyvinyl Chloride, Polypropylene, Ammonia
Report Sections:
Feedstocks & Energy, Global Ethylene Cracker – Spot Profit Analysis, Ethylene & Propylene – Price Trends, Other Relevant Global Commodity Chemical Trends, Global Polyethylene Analysis, Global Polypropylene Analysis, Global Chlor-Vinyl Analysis, Global Methanol Analysis, Global Chemical Data Sheets, Agriculture Price & Margin Dashboard, Flow Charts & Other Ancillary Data

The Weekly Catalyst

Global Chemical Prices Mostly Rise With Costs WoW, US Margins Shrink

  • Feedstock Market Trends: Global commodity chemical feedstock costs, on average, rose WoW, but USGC natural gas and ethane increased more than Ex-US natural gas and naphtha, favoring a flatter cost curve.
  • Chemical Market Trends: Global monomer and base chemical values, on average, also increased WoW, with US propylene and NW Europe ethylene reflecting the only significant price declines across major markets.
  • Polymer Market Trends: Global polyvinyl chloride (PVC) prices rose the most WoW, followed by strength in polyethylene (PE) and polypropylene (PP) – Asia and Europe integrated economics rose compared to the US.
  • Agriculture Market Trends: Global ammonia values declined WoW, lagging recent Ex-US natural gas price weakness and rising demand concerns due to YTD crop price weakness, notably corn relative to soybeans.

Exhibit 1 – Chart of the Day: Global chemical polymer prices, on average, rose WoW, as did their feedstock costs.

Source: Bloomberg, C-MACC Analysis, January 2024

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