Operator: Thank you. The next question is coming from Ghansham Panjabi from Baird. Your line is now live.
Ghansham Panjabi: Thank you. Good morning, everybody. Lori, in your prepared comments you talked about some of the competitiveness on the EM side. I think it was specific upon imports from or exports from Asia into Europe, et cetera. How do you see that dynamic playing out, you know, as the rest of the year unfolds, is it as simple as China reopens and there’s more localized demand and so that takes care of that or what are you thinking about at this point on that?
Lori Ryerkerk: Yes. Thanks, Ghansham. Yes, look, you’re exactly right. I think there’s two factors and we’re really starting to see. Early in first quarter, we still had some material moving over from Asia, we expect that will be mostly done in the second quarter and for the two factors, one, that you called out. As we see demand picking-up in Asia, there’s less incentive to put things on a boat, move it to Europe. But secondly with these low-energy prices that we’re seeing and the ability to replace our higher-cost inventory with lower-cost inventory, that’s resulting in better pricing for our European customers and so the arbitrage we expect will be closing here at the end of the first quarter and into the second quarter. And so that I think really helps restore the supply demand dynamics.
That of course, we are seeing much higher demand now starting to really seeing demand pickup in Europe here in March in particular and we expect that to continue into the second quarter. So with higher demand, lower pricing for the customers because of energy and raw material costing and then higher demand in China making it less attractive to ship across. We think those three factors actually combined should resolve the situation in the second quarter.
Ghansham Panjabi: Okay. Great. And then in terms of the sort of the macroeconomic construct, so China you touched on in terms of momentum, just given the sequence of events there. Europe, you just touched on that as well. What about North-America as an offset as it relates to slow down sequentially, how do you see that evolving in ’23?
Lori Ryerkerk: Yes. So I would say, North America has been a bit sluggish in the first quarter. So far we’ve seen more recovery in Europe as we go into March than we have so far in North America. But we don’t have any reasons to think North America also isn’t going to get there in the second quarter. I mean, auto builds are strong, we see signs that the destocking is over. Again, natural gas pricing in the U.S. and raw material pricing should expect North America to come back strongly as well.
Operator: Thank you. Next question is coming from Jeff Zekauskas from JPMorgan. Your line is now live.
JeffZekauskas: Thanks very much. Can you tell us what the EBITDA of the M&M business was in 2022? And in the old days I think you guys thought it was $900 million in EBITDA. And plainly, it’s operating at a much, much lower level. Can you diagnose what happened that is through these structural problems or raw material problems? And how much of the nylon is sold at monthly contract price and you know right now of that M&M business?
