The Weekly Catalyst

US Ethylene Chain Benefits Flow To Both Domestic Producers & Buyers, Not So In Propylene
March 11, 2024
Companies Mentioned:
Nova Chemicals, Oxy, Celanese, Enterprise Products, OQ, Braskem, LyondellBasell, ExxonMobil, Westlake, Shin-Etsu, Olin, Yara, CF Industries, Nutrien, LSB Industries
Commodities Mentioned:
Ethylene, Propylene, Butadiene, Polyethylene, Polypropylene, Polyvinyl Chloride, Naphtha, Propane, Crude Oil, Natural Gas, Ethane, Chlor-Alkali, Methanol, Ammonia, Corn
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

US Ethylene Chain Benefits Flow To Both Domestic Producers & Buyers, Not So In Propylene

  • Chemical Market Trends: The North American ethylene chain is regionally cost-advantaged for producers and non-integrated buyers, but will this setting persist? Register for our March 13 ethylene market webcast HERE.
  • Polymer Market Trends: Global polymer price movements WoW varied across primary regions, and we flag US polyethylene (PE) showing the most strength globally, while NW Europe PE reflected the most weakness.  
  • Feedstock Market Trends: The North American chemical feedstock cost advantage rose compared to Ex-US markets WoW, as Crude Oil, ex-US natural gas, and naphtha prices rose relative to US natural gas and NGLs.  
  • Agriculture Market Trends: Crop prices increased WoW, while US ammonia production costs moved lower and ex-US production costs moved high – a positive development for North American ammonia producers.

Exhibit 1 – Chart of the Day: US ethylene contracts fell slightly in February, staying below Europe and Asia spot levels.

Source: Bloomberg, C-MACC Analysis, March 2024

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