Global Chemical Update – Global Cost Curves in Focus

The Weekly Catalyst

Global Chemical Update – Global Cost Curves in Focus

Key Points:

• Global polymer prices modestly increased WoW, lagging crude oil feedstock costs higher, benefiting North American integrated polymer producers compared to their Europe and Asia counterparts.
• During the past thirty days, US natural gas and USGC ethane have fallen 6% and 28%, respectively, while Brent Crude and ex-US naphtha values are 4% and 13% higher, favoring higher prices abroad.
• We also highlight that overseas methanol and ammonia price premiums have increased compared to North American spot values, which we view as constructive for domestic producer margin support.