Why are Latin American petrochemical spreads at multi-year highs in April, and what key feedstock price changes contributed to this?

Latin American petrochemical spreads reached multi-year highs in April due to a combination of rising polymer prices and a more stable feedstock environment—specifically, naphtha prices rose only 11% (versus a 50% surge in March), while ethane prices fell 13%, allowing spreads to expand meaningfully. The Bank of America report attributes the strong performance to both higher resin prices and reduced feedstock volatility compared to March.

What does Bank of America say about the sustainability of the current petrochemical spread rally in Latin America, and what factors could reverse it?

Bank of America warns that the mid- and long-term sustainability of the current spread rally is unlikely, citing risks including potential escalation of Middle East hostilities (which could alter the outlook in either direction), growing Asian import pressure into Europe, and demand destruction in high-cost environments—suggesting the rally’s breadth may already be narrowing.

Latin American Petchems Spreads at Multi-Year Highs but Party May Be Over Soon – Bank

May 12, 2026

Bank of America reports Latin American petrochemical spreads reached multi-year highs in April driven by Middle East supply disruptions and stable feedstock, though sustainability remains uncertain.

icis

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Latin American Petchems Spreads at Multi-Year Highs but Party May Be Over Soon – Bank

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Latin American Petrochemical High-Profit Trend Unlikely to Sustain

Latin American Petchems Spreads at Multi-Year Highs but Party May Be Over Soon – Bank

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