Most US Integrated Polymer Margins Remain Above Their 1Q24 Average, Europe & Asia Margins Are Relatively Lower

Polymer Market Trends: US spot polymer prices reflect downward pressure QTD but improvement in the US feedstock cost advantage YTD relative to Asia and Europe keeps PE and PVC margins above 1Q average levels.
Chemical Market Trends: Global base and intermediate spot chemical prices were largely unchanged WoW, with the most significant support being seen in the US and the most notable weakness being seen in Europe.
Feedstock Market Trends: Crude oil prices declined WoW at a similar rate at US natural gas, holding the oil-to-gas ratio near multi-year highs, and Ex-US naphtha values are above the five-year range relative to US ethane.
Agriculture Market Trends: Corn prices moved higher WoW, Ex-US natural gas prices rebounded relative to US natural gas WoW, and the ammonia market shows global support which is a net plus for US producer margins.

Exhibit 1 – Chart of the Day: US PE & PVC margins are higher than their 1Q24 average, US PP margins similar with 1Q.