Global Chemical Update – Riders On The Storm

The Weekly Catalyst

Global Chemical Update – Riders On The Storm

Key Points:

• On average, global polymer prices WoW were unchanged following their 1Q23 run-up. However, global production costs decreased last week, with the US seeing a larger pullback than Asia or Europe.
• US ethylene producers are profitable across all primary feedstocks, with propane seeing the most implied margin strength WoW. Asia and NW Europe spot ethylene production is mostly unprofitable.
• We highlight a few beneficiaries of current commodity price movements and our views following meetings at-and-around CERAWeek, as we foresee a significant change in energy and chemicals ahead.