The Weekly Catalyst

North American Petrochemical Production Cost Advantage Improves Relative to Europe & Asia; Will It Get Any Better?
April 29, 2024
Companies Mentioned:
Dow, Nova Chemicals, ExxonMobil, LyondellBasell, Baystar, Westlake, Shin-Etsu, Occidental, Formosa, Methanex, OCI, Celanese, Mitsui, CF Industries, Nutrien, LSB Industries, Yara
Commodities Mentioned:
Polyethylene, Polypropylene, Polyvinyl Chloride, Ethylene, Propylene, Benzene, Methanol, Vinyl Acetate Monomer, Ammonia, Ethane, Naphtha, Crude Oil, Natural Gas
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 & Margin Dashboard, Flow Charts & Other Ancillary Data

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


Client Login

Learn About Our Subscriptions and Request a Trial

Contact us to gain full access and experience our services!

Request a Free Trial

Archives