Coronavirus affects Americas petrochemicals markets

While chemical manufacturing is among sectors deemed critical to combat the spread of the coronavirus, markets continue to face serious challenges as end-users step back and cancel or postpone orders, unable to gauge demand in the coming weeks and months amid increasing stay-at-home orders throughout the Americas. Some polymer markets are showing the strain, as export markets want less US polyvinyl chloride, a construction staple and key economic indicator, and US prices for polyethylene terephthalate, the plastic used for beverage bottles, reached a 14-year low as its feedstock prices take sharp dives. "Petrochemical liquidity and price transparency during March has been severely limited as buyers and sellers prioritize managing the safety of their employees. As we head into April, contract negotiations will force market participants to set prices based on the lowest energy and feedstock prices since 2008," Rob Stier, Senior Manager Petrochemical Analytics at S&P Global Platts, said.