Francine Concerns Put US Polymer & Chemical Markets on Edge, As Prices Likely To Decline Absent A Disruptive Production Event!

Chemical Market Trends: We highlight the announced Methanex acquisition of OCI Global methanol assets, US methanol prices at a premium to Asia, and flag strength WoW in US spot ethylene relative to propylene.
Polymer Market Trends: Global polymer prices, on average, reflected weakness WoW, and while fundamental trends suggest further price weakness ahead, a storm development in the USGC could favor price support.
Feedstock Market Trends: US natural gas and USGC ethane values rose WoW relative to Brent crude oil, Ex-US naphtha, and Ex-US natural gas prices, lessening US chemical producer cost benefits and favoring lower prices.
Agriculture Market Trends: Ex-US ammonia prices fell relative to US levels WoW, following a run-up in global ammonia prices, and global input cost trends suggest greater production and lower global prices into yearend.

Exhibit 1 – Chart of the Day: US spot ethylene moves opposite of propylene WoW, and so do their primary feedstocks.