European olefins: P/E ratio approaches 1, where does it go from here?
For the European region, the settlement of the July olefins monthly contract prices (MCP) were at a level such that propylene has essentially reached parity with the ethylene price. This trend reflects a recent peak of rises in this ratio from January 2021. Stepping back, the directional trend of the European P/E ratio has been rising since early 2016. What is driving this? Where does it go from here?