European Chemical Industry Headwinds Stiffen WoW; North America (& Asia) Face Fewer Relative Pressures

Polymer Market Trends: Global spot polymer prices were mainly lower last week, with spot polyethylene and polypropylene prices falling in all significant regions relative to feedstocks, on average, especially in Europe.
Chemical Market Trends: Western methanol markers have tightened during the past three months relative to Asia, with European prices rising the most amid a mix of production issues and Middle East tension concerns.
Feedstock Market Trends: Global chemical production feedstock costs increased last week – NW Europe saw the most sizable increases from higher naphtha and natural gas, and Asia reflected less cost inflation WoW.
Agriculture Market Trends: Global spot ammonia prices were mainly unchanged last week, and higher natural gas costs in all regions trimmed margins. Crop prices rose WoW, a positive indicator for farmer spending.

Exhibit 1 – Chart of the Day: NW Europe methanol has surged to a YTD and multi-year high relative to the US and Asia.