The Weekly Catalyst
North American Petrochemical Production Cost Advantage Improves Relative to Europe & Asia; Will It Get Any Better?
- Polymer Market Trends: We highlight our upcoming attendance at NPE, the April edition of our Polymer Price Expectations report, and discuss mixed movements in global spot polymer markets by product chain WoW.
- Chemical Market Trends: Global base and intermediate spot chemical prices varied but mainly were lower WoW, with Europe and Asia seeing lower margins. Cost relief outpaced most US chemical price declines WoW.
- Feedstock Market Trends: US natural gas prices fell last week, while Brent Crude oil values rose, pushing the crude oil-to-natural gas price ratio to a 10+ year high, a level which since 1991 was only exceeded in 2012.
- Agriculture Market Trends: Global spot ammonia values WoW showed price support WoW despite natural gas prices reflecting a downward trend, implying lower ammonia prices ahead despite recent crop price support.
Exhibit 1 – Chart of the Day: US natural gas prices reflect their lowest level in 10+ years relative to Brent crude oil.
Source: Bloomberg, C-MACC Analysis, January 2024
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