Pressure Drop – Global Polymer Prices Slide Again; US Costs Rise Relative To Asia and Europe, Lessening Its Advantage

Polymer Market Trends: Global spot polymer prices fell (again) WoW, with Europe showing the most severe price declines, though North American and Asia polymer markets were mainly weaker as well.
Chemical Market Trends: US spot ethylene margins remain much higher than those in Asia and Europe, but they saw relative weakness WoW. We also flag the downward pressure on global butadiene spot prices in 4Q.
Feedstock Market Trends: The North American petrochemical cost advantage fell relative to Asia and Europe last week, as Ex-US naphtha and crude oil prices fell relative to US natural gas, propane, and ethane values.
Agriculture Market Trends: Strength in corn prices relative to soybeans favors more nitrogen-based fertilizer use – a plus for ammonia price support. However, US producer margins fell WoW relative to Europe and Asia.

Exhibit 1 – Chart of the Day: Western polyolefin margins trend towards Asia (which are below zero) in 4Q24.