Global chemicals market overview for April 06-11
🧪 The global chemicals market remained under pressure this week as the Middle East supply shock continued to spread beyond feedstocks into freight and downstream industries. Despite talk of a ceasefire, prices and shipping costs stayed elevated, showing that the market is still dealing with a real supply shortage rather than a temporary sentiment move.
🚢 Chemical freight rates kept rising on key routes from the US Gulf to Asia, Europe, India, and South America as spot vessel space remained tight and cargo rerouting increased. This added fresh pressure to methanol, MEG, ethanol, and other basic liquid chemicals, while making it unlikely that delivery costs will ease quickly in Q2.
🌾 Fertilizers were the strongest segment of the week. Granular urea moved above $700/ton after rising 50-70% in five weeks, while US anhydrous ammonia climbed above $1,000/ton for the first time since 2023. Egypt’s DAP tender settled at $840/ton and sulphur hit multi-year highs, showing that the chemicals shock is now feeding directly into global farm input costs.
🏭 On the supply side, more physical disruptions and force majeures were confirmed this week, with major sites in Saudi Arabia, Iran, Bahrain, and parts of Asia either shutting down or cutting rates. Methanol and MEG are now among the clearest shortage points as Middle East supply drops and Asian buyers shift to more expensive US cargoes.
🌏 Southeast Asia is starting to feel the pressure more clearly. Plastic prices in Indonesia rose 30-50%, some grades nearly doubled, and spot PVC climbed to multi-year highs. With ethylene and naphtha still tight, many plants have reduced rates and regional converter margins are being squeezed.
⏳ The medium-term concern is that Middle East supply chain recovery may take 12-18 months because of restart, labor, energy, and logistics constraints. That suggests pricing pressure across plastics, coatings, adhesives, packaging, and agriculture may stay visible for longer.