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Mind the gap: Widening spot discounts to contract prices prompt rethink

Published March 2020

2019 was a bearish year for the petrochemicals industry. With weaker-than-expected demand, additional capacity coming online and shifting trade flows, global petrochemical prices have been under downward pressure. The imbalance seen in supply and demand fundamentals led to a widening of spot discounts to contract prices in many petrochemical markets, leading buyers to reevaluate their purchasing habits.