Daily Chemical Reactions | Global Polymers

Global Polymers Market Update – C-MACC/PXi Polymer Price Service Benefits Evident At NPE!
May 8, 2024
Commodities Mentioned:
PE, PP, PGP, RPG, PS, PVC, LDPE, Naphtha, Crude Oil, Ethylene, Propylene, Propane, Ethane, Natural Gas, LPG, LNG, Plastic Waste
Companies Mentioned:
ExxonMobil, Heartland Polymers, PureCycle, Braskem, Shell, Sinopec, Chandra Asri, Glencore, BP, TotalEnergies, ADNOC, BMW, Mercedes Benz, Nikola, Toyota

Global Polymers Market Update – C-MACC/PXi Polymer Price Service Benefits Evident At NPE!

Key Findings

  • General Thoughts: The C-MACC/PXi polymer price service was created to provide more clarity into transacted prices – confusion surrounding the US PE market and April contract settlements show the need for our service!
  • Supply Chain/Commodities: US spot polypropylene (PP) prices have trended lower relative to Europe and Asia in 2Q24 – we discuss our expectation for downward pressure on US (and global) PP spot prices into 2H24.
  • Energy/Upstream: We discuss weakness in US propane prices relative to US natural gas and ethane, which alongside lower oil prices and elevated RGP splitter economics, suggests propylene price weakness ahead.
  • Recycled/Renewable Polymers: We discuss PureCycle 1Q24 results and its PP recycled product market view, which also highlights estimates for prices and market potential – we remain skeptical of its economic model.
  • Downstream/Other Chemicals: We highlight major polypropylene (PP) end-market uses, which notably target durable goods, and its more notable exposure in automotive applications as compared to PE, PVC, and PS.

Exhibit 1: US spot polypropylene (PP) prices have fallen YTD to reflect levels much closer to Asia than Europe.

Source: Bloomberg, C-MACC Analysis, May 2024

See PDF below for all charts, tables and diagrams

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