Can They Hold On? – US Spot Integrated Polymer Margins Near YTD Highs, Europe Chemical Prices See the Most Strength WoW

Polymer Market Trends: US integrated spot polymer margins rose into 3Q24 amid global price strength and upstream feedstock cost relief, creating a favorable setting for the 2Q reporting season for producers.
Chemical Market Trends: Western base chemical prices rose WoW relative to Asia, with Europe seeing the most regional price strength on average, and US spot ethylene being the strongest among the commodities.
Feedstock Market Trends: Brent Crude Oil and Ex-US naphtha prices have increased in the past 30 days relative to US natural gas and USGC ethane, pushing the North American cost advantage upwards.
Agriculture Market Trends: Crop prices fell WoW, implying downward pressure on farmer income and the perception of fertilizer use, though ammonia prices are relatively unchanged compared to feedstock costs.

Exhibit 1 – Chart of the Day: US spot PE, PVC, and PP integrated margins have risen relative to their 2Q24 averages.