Global Chemical Update – Heading Into A Colder Setting

The Weekly Catalyst

Global Chemical Update – Heading Into A Colder Setting

Key Points:

• Polyethylene (PE) and Polyvinyl Chloride (PVC) spot prices fell more in the US than abroad WoW, but Polypropylene (PP) values strengthened WoW despite US propylene and Ex-US PP prices falling.
• Domestic PP prices will likely see a rising amount of downward pressure relative to current levels into 2024, as domestic upstream outages dissipate and US producers face more Asia competition.
• US and NW Europe methanol prices fell WoW relative to Asia, a more negative trend for European producers than in the US. US benzene also declined WoW but remains high relative to Ex-US levels.

Exhibit #1 – Chart of the day: Global PE and PVC prices have fallen since mid-3Q23, but PP has strengthened.

Source: Bloomberg, C-MACC Analysis, November 2023