Feedstock & Base Chemical Price Movements Drive Most Polymer Margin Shifts WoW, Global Polymer Values Mostly Unchanged 

The Weekly Catalyst

Feedstock & Base Chemical Price Movements Drive Most Polymer Margin Shifts WoW, Global Polymer Values Mostly Unchanged

• Chemical Market Trends: Western base chemical values rose relative to Asia WoW, with Europe spot ethylene reflecting notable strength and lifting European spot ethylene margins to their first positive result since March.
• Polymer Market Trends: Global spot polymer prices were mostly unchanged WoW, with upstream feedstock costs for integrated producers and base chemical costs for non-integrated producers driving margin changes.
• Feedstock Market Trends: Global chemical feedstock costs were mixed WoW, though US natural gas and ethane fell relative to crude oil and Ex-US naphtha, and Ex-US natural gas prices declined more than US levels.
• Agriculture Market Trends: Crop prices reflect weakness, as US corn and soybean prices reached new YTD lows last week. Global ammonia margins rose WoW, with the greatest weekly gains in Europe and Asia.

Exhibit 1 – Chart of the Day: US spot ethylene production margins based on USGC ethane feedstock reflect a YTD high, while US High-Density Polyethylene (HDPE) prices reflect a YTD low relative to USGC (Tx-Grid) spot ethylene values.

Source: Bloomberg, C-MACC Analysis, August 2024