North America’s Petrochemical Production Cost Advantage Rises Relative to Europe and Asia, Global Prices Mixed

Polymer Market Trends: We highlight US spot polymer market developments that support conclusions issued in the latest C-MACC/PXi polymer price expectations report and comment on recent PVC price trends.
Chemical Market Trends: US spot ethylene prices reflect support, partly due to continued strength on the Choctaw (LA grid) relative to Texas, spurring some to sell merchant ethylene rather than produce derivatives.
Feedstock Market Trends: Brent Crude Oil and Ex-US naphtha prices rose WoW relative to global natural gas and USGC ethane prices, steepening the global chemical cost curve, on average, in favor of North America.
Agriculture Market Trends: US corn prices moved lower WoW, weighing on sentiment towards farmer income and crop input use. US spot ammonia production margins improved relative to Asia and Europe WoW.

Exhibit 1 – Chart of the Day: North America’s ethylene production advantage rose WoW relative to Europe and Asia.