Come And Get It! Negative Permian Natural Gas Prices Put US Natural Gas Advantage on Display

Key Findings

General Thoughts: The benefits of cheap North American natural gas have been pronounced this year for its chemical industry, and strategic actions remain focused on scaling this benefit globally in a myriad of forms.
Supply Chain/Commodities: We highlight the latest C-MACC/PXi polymer price report, our polymer price views that do not require periodic non-market adjustments, and a few global chemical sector asset acquisitions.
Energy/Upstream: Europe and Asia natural gas prices have increased relative to US Henry Hub natural gas values in 3Q24, and so have oil prices, which reflects a substantial benefit for North American natural gas consumers.
Sustainability/Energy Transition: We discuss the setting for blue ammonia market production growth in the US, as government incentives notably add to the cheap natural gas benefit, and a LEGO recycled content update.
Downstream/Other Chemicals: We show the decline in global freight rates, which we continue to view as a plus for relieving the oversupply situation in Asia but negative for manufacturers in high-cost regions, such as Europe.