Weekly Chains Update

Research evidence excerpt

Weekly Chains Update

Idea

July 6, 2026 05:27 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 flat Steven.Haynes@morganstanley.com

Justin T Pellegrino

to +1cpp week-over-week (FOB Houston, railcar), and spot export prices were -6cpp

to -2cpp week-over-week (FCA Houston, railcar). June contract prices remain Justin.Pellegrino@morganstanley.com +1 212 761-4054

unsettled. Commentary indicated limited activity in domestic spot markets this past

Chemicals

week as buyers purchased for short-term needs. Traders indicated that export North America

markets saw weak demand overall though supported by some shipments to China Industry View In-Line

and Southeast Asia. Though commentary indicates competitive offers from Asia

have been weighing on demand into Latin America, container scarcity is reportedly

limiting East to West shipments. In Mexico, sales were reportedly limited this past

week. On supply, reports indicate abundant material available. 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

Global Polyethylene (PE) market update. In Asia, spot price assessments were