By: ICN Bureau
Last updated : April 09, 2026 6:38 am
Indicative chemical margins are projected to remain roughly flat at $139 per tonne
Shell is poised to extend the losing streak in its chemicals division into the first quarter of 2026, driven by persistent market pressures and weak margins despite a rise in refining margins. Indicative chemical margins are projected to remain roughly flat at $139 per tonne, nearly unchanged from the $140 per tonne reported in Q4 2025.
Following a $589 million loss in Q4 2025 and an annual loss of over $1 billion in 2025, the chemical sub-segment is expected to continue its losing streak in Q1 2026.
Chemical plant utilization is expected to improve slightly, anticipated between 81% and 85%, compared to 76% in the previous quarter.
While the overall chemicals and products segment sees improved refining margins ($17/bbl) and increased trading profits, the specific chemical business is hindered by "significant losses" and weak demand.