Chemicals: Weekly Chains Update

Research evidence excerpt

Chemicals: Weekly Chains Update

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June 22, 2026 04:22 AM GMT

Morgan Stanley & Co. LLCMChemicals | North America Vincent Andrews

Equity Analyst

Weekly Chains Update Vincent.Andrews@morganstanley.comTurner W Hinrichs +1 212 761-3293

Research Associate

Turner.Hinrichs@morganstanley.com +1 212 761-1269

Steven K Haynes, CFA

North America Polyethylene (PE) market update: spot domestic prices were -3cpp Steven.Haynes@morganstanley.com

Justin T Pellegrino

to -1cpp week-over-week (FOB Houston, railcar), and spot export prices were -2cpp

to -1cpp week-over-week (FCA Houston, railcar). Domestic markets reportedly saw Justin.Pellegrino@morganstanley.com +1 212 761-4054

improved activity this past week, though commentary indicates that buyers remain

Chemicals

cautious. In export markets, buyers were reportedly pausing purchasing activity in North America

anticipation of potential price declines, resulting in limited activity. That said, market Industry View In-Line

feedback indicates pressure from competitive Chinese offers has diminished due to

the reduced spread between US and Chinese offer levels as well as delays for

Chinese material. In Mexico, some distributors noted that activity increased this past

week, though with demand remaining at relatively muted levels. On supply, reports

indicate abundant availability. Natural gas prices and ethane prices increased week-

over-week, resulting in a decreased frac spread of -1.09c/gal (vs. -0.95c/gal the prior

week). Last week, ethane prices increased 0.3c/gal (1.2%) to 21.3c/gal, while natural

gas increased 1.8% to $3.36/mmbtu. For further details on our polyethylene

outlook, please see: Chemicals: Polyethylene S&D Update (21 Apr 2026) and

Chemicals: China PE Net Imports Likely Critical for US Contract Prices (11 Jun

2026).