Daily Chemical Reactions | Global Polymers

Global Polymers Market Update: Weather We Should Hold More Inventory – Seems So!
June 12, 2024
Commodities Mentioned:
PGP, PP, PE, PVC, Ethylene, Natural Gas, Chlor-Alkali, Crude Oil, LNG, Ethane, Naphtha, EVs, Polypropylene, Plastic Waste, Polystyrene, Carbon, Carbon Dioxide, Hydrogen, Renewable Fuels, PET, PS, HDPE, LDPE
Companies Mentioned:
Enterprise Products, ExxonMobil, LyondellBasell, SABIC, Borealis, Formosa Plastics, Braskem, Chevron Phillips Chemical, Nova Chemicals, Dow, Occidental, Westlake, Shin-Etsu, Orbio, Sinopec, PureCycle, Eastman, RES, Freepoint Eco-Systems, Neste, BlueAlp, TotalEnergies, LG Chem, Indorama Ventures, SK Geo Centric, Shell, PTT Global Chemical, SCG Chemical, Mitsubishi Chemical, FedEx, Packaging Corp, Green Bay Packaging

Weather We Should Hold More Inventory – Seems So!

Key Findings

  • General Thoughts: US spot polymer prices, on average, have increased from mid-2Q24 lows amid a mixture of production and logistic issues and efforts to stock inventory as some anticipate a record US hurricane season.
  • Supply Chain/Commodities: We discuss US spot PGP price strength in June as production issues persist, US polymer export market support, and why we see US polymer price weakness ahead absent sizable outages.
  • Energy/Upstream: We highlight YTD price support and less volatility in Ex-US naphtha prices relative to crude oil and falling US ethane values relative to US natural gas, which benefits North American ethylene producers.
  • Recycled/Renewable Polymers: We discuss circular product initiatives at several plastic producers, each with initiatives underway in advanced recycling, and highlight the different chemical recycling technologies.
  • Downstream/Other Chemicals: We discuss the May CPI postings for the US and China, following our research from yesterday, and discuss the greater packaging market drivers of global PE demand relative to PP and PVC.

Exhibit 1: US integrated polymer margins, on average, have generally held up or improved upon levels seen in 1Q24.

Source: Bloomberg, C-MACC Analysis, June2024

See PDF below for all charts, tables and diagrams

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