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.