The Weekly Catalyst

Global Chemical Supply Response Likely As Cost Pressures Lessen
February 5, 2024
Companies Mentioned:
Dow, ExxonMobil, Chevron Phillips Chemical, Nova Chemicals, Celanese, PPG, 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 Supply Response Likely As Cost Pressures Lessen

  • Feedstock Market Trends: Global commodity chemical feedstock costs, on average, declined WoW, with US natural gas posting the most significant decline, but Brent crude oil and Ex-US naphtha values also weakened.
  • Chemical Market Trends: Global chemical market values, on average, increased WoW, with the most sizable gains seen in the US and Asia relative to NW Europe. Global margins improved in support of lifted production.
  • Polymer Market Trends: Global PE prices rose relative to other polymers WoW. The most significant PE price strength YTD has occurred in Europe and the US, benefiting producers with assets in both regions MoM.
  • Agriculture Market Trends: Global ammonia values declined WoW, lagging recent global natural gas price weakness, and we also flag recent weakness in corn and soybeans posing as farmer income headwinds.

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

Source: Bloomberg, C-MACC Analysis, February 2024

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