Upstream Integration & Cost Position in Focus As Downstream Uncertainties Persist

Chemical Market Trends: US spot polymer-grade propylene values jumped again WoW, suggesting another contract uptick in March if the current spot price holds – we discuss the global landscape and those impacted.
Polymer Market Trends: Global polymer prices were flat-to-up across all primary regions last week, with the most regional strength occurring in Europe, and we show regional spot trends worth consideration in 1Q24.
Feedstock Market Trends: The price of Brent crude oil rose 2.4% WoW, dwarfed by a 14.5% rise in US natural gas. However, relative to three months ago, Brent Crude is 5.9% higher, and US natural gas is 34.8% lower.
Agriculture Market Trends: Crop prices moved modestly higher WoW, following a period of weakness in early 2024, and we highlight the drop in Ex-US ammonia prices, likely putting downward pressure on US spot prices.

Exhibit 1 – Chart of the Day: US propylene contracts rose MoM in February; March spot levels suggest another uptick.