The Weekly Catalyst

North American Chemical Feedstock Cost Advantage Significantly Rose In 1Q24 Relative to Europe & Asia
March 25, 2024
Companies Mentioned:
Dow, Nova Chemicals, Oxy, Celanese, Enterprise Products, OQ, Phillips 66, Braskem, LyondellBasell, ExxonMobil, 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

North American Chemical Feedstock Cost Advantage Significantly Rose In 1Q24 Relative to Europe & Asia

  • Feedstock Market Trends: Crude Oil prices have reached multi-year highs relative to US natural gas in March, which is a notable positive for North American petrochemical producers relative to peers in Europe and Asia.
  • Agriculture Market Trends: Crop prices increased WoW and Ex-US natural gas prices increased relative to US levels, which is a constructive development for North American ammonia production margins into 2Q24.
  • Chemical Market Trends: Global commodity chemical prices were mostly unchanged WoW, and we flag US ethylene chain benefits flowing to both producers and buyers which is unlike other chains, such as propylene.
  • Polymer Market Trends: Global polymer prices on average reflect support into the close of March, helped by global feedstock level developments, which we will also discuss in our upcoming polymer expectations report.

Exhibit 1 – Chart of the Day: Chemical feedstock cost ratio trends notably benefit North American producers in 1Q24.

Source: Bloomberg, C-MACC Analysis, March 2024


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