LyondellBasell provides operational outlook

LyondellBasell (LYB) provided an operational outlook. In Q2, market conditions are expected to support significant sequential improvement across almost all businesses, reflecting tighter supply dynamics and favorable pricing trends resulting from the disruption in the Middle East. In North America, further margin expansion is anticipated, driven by increased export demand and crude-linked pricing dynamics. In Europe, the completion of the European asset sale is expected to improve average margins while reducing cost. Reduced exports from the Middle East and Asia to Europe are leading to increased polymer spreads, which are expected to more than offset lower volumes associated with the divestiture. Reductions in operating rates and shutdowns associated with the war could accelerate capacity rationalizations. The company is aligning Q2 operations to capture value and match demand by maximizing rates for North American olefins and polyolefins assets and raising rates for European O&P assets to 80% while the Intermediates & Derivatives segment is expected to keep rates at 75%. Ongoing geopolitical uncertainty is likely to continue to drive supply dislocations and price volatility.