2024 Starts Slow, Volatility To Likely Grow – Global Chemical Update

Key Findings:

Feedstock Market Trends: North American petrochemical producers begin 2024 with a significant cost advantage relative to Asia and NW Europe, but it may be as good as it gets unless crude oil markets tighten.
Chemical Market Trends: US polymer-grade propylene reflects significant strength relative to Ex-US markets, reflecting considerable headwinds for non-integrated buyers. US ethylene buyers have a global advantage.
Polymer Market Trends: Global polymer prices are mostly unchanged WoW, however, most are lower since early December, with US PE and PVC falling relative to Ex-US levels while the opposite has occurred in PP.
Agriculture Market Trends: US Ammonia prices have fallen relative to natural gas prices since late 4Q, but domestic producers hold a sizable cost advantage relative to Europe and Asia despite their recent cost drop.