Rock You Like A Hurricane – Beryl Disruptions Favor US Spot Commodity Chemical Price Strength, May Harm Specialty Profits

Polymer Market Trends: Hurricane Harvey was labeled the first global hurricane for chemicals in 2017, given its impact on US plastic producers increasingly targeting exports – we discuss similarities with Hurricane Beryl.
Chemical Market Trends: US commodity chemical prices rose last week, and we anticipate further strength amid production disruptions on the US Gulf Coast – a plus for commodity prices that is negative for buyers.
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: Global ammonia prices were mostly unchanged, on average, last week, though US natural gas prices fell relative to Ex-US values, lifting US margins. We see limited Agriculture impact from Beryl.

Exhibit 1 – Chart of the Day: US commodity chemical and S&P chemical index movements following Hurricane Harvey.