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