Asia Chemical Prices Fall Relative to Europe; North America Mixed But Its Advantaged Global Cost Position Holds Above 1H24 Levels

The Weekly Catalyst

Asia Chemical Prices Fall Relative to Europe; North America Mixed But Its Advantaged Global Cost Position Holds Above 1H24 Levels

• Polymer Market Trends: Global spot polymer markets were mixed WoW, with Europe broadly reflecting more strength than North America and Asia, whose still strong production faces a varied global demand setting.
• Chemical Market Trends: US spot ethylene and propylene prices increased WoW, adding to strength amid outages and strong derivative demand since April. Base chemical spot prices rose in Europe but fell in Asia.
• Feedstock Market Trends: Global chemical feedstock costs mostly rose WoW, with US natural gas and ethane rising more than crude oil and Ex-US naphtha, and Ex-US natural gas prices increasing more than US levels.
• Agriculture Market Trends: Crop prices reflect weakness, as US corn and soybean prices reached new YTD lows last week. US ammonia margins rose relative to Europe and Asia, helped by an improved cost position.

Exhibit 1 – Chart of the Day: US spot ethylene prices have surged higher since April amid production issues, and spot ethylene prices on the US Choctaw (Louisiana) system reflect spot levels similar to the European average currently.

Source: Bloomberg, C-MACC Analysis, August 2024