The Weekly Catalyst

Western Commodity Chemical Margins Reflect Strength WoW Relative To Asia
February 20, 2024
Companies Mentioned:
Celanese, PPG, Olin, Methanex, OCI, Huntsman, Dow, ExxonMobil, Chevron Phillips Chemical, Nova Chemicals, Yara, CF Industries, Nutrien, LSB Industries
Commodities Mentioned:
Crude Oil, Natural Gas, Ethane, Propane, Naphtha, Ethylene, Propylene, Benzene, Polyethylene, Polyvinyl Chloride, Polypropylene, Polystyrene, Ammonia, Ethanol
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 Dashboard, Flow Charts & Other Ancillary Data

The Weekly Catalyst

Western Commodity Chemical Margins Reflect Strength WoW Relative To Asia

  • Feedstock Market Trends: US natural gas and USGC ethane prices slid lower (again) WoW relative to Brent Crude oil and Ex-US naphtha values, broadly benefiting North American ethylene and derivative producers.
  • Chemical Market Trends: NW Europe base chemical prices reflected the most broad-based improvement WoW, pushing NW Europe ethylene production margins positive for the first time in roughly eight months.
  • Polymer Market Trends: US integrated spot polyethylene production margins hit a YTD high last week, rebounding to a level last seen in 1H23. Asia polymer margins broadly reflect the greatest weakness WoW.
  • Agriculture Market Trends: The Ex-US natural gas price decline WoW led Ex-US ammonia prices lower, and we see this weakness negatively impacting US domestic ammonia prices in 1H24. US Corn prices fell further WoW.

Exhibit 1 – Chart of the Day: Global natural gas prices decreased relative to crude oil and most chemical prices WoW.

Source: Bloomberg, C-MACC Analysis, February 2024

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