Global Chemical Update – Levitating

The Weekly Catalyst

Global Chemical Update – Levitating

Key Points:

• North American integrated polymer margins have broadly increased relative to 1Q23 lows – we flag US polyethylene (PE) and polyvinyl chloride (PVC) margins are higher than their 3Q22 average levels.
• USGC ethane values declined WoW relative to Ex-US naphtha. The oil-to-gas ratio also remains near a multi-year high, and most petrochemical indicators favor a revival in North American production.
• Global spot polymer prices, on average, WoW were unchanged. However, we find strength in Asia relative to European declines. North American prices were broadly unchanged WoW.