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Global petrochemical prices fell 3% in September Platts Global Petrochemical Index
October 16, 2014
A Platts.com News & Analysis Feature
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LONDON, October 10, 2014 - Prices in the $3-trillion-plus global petrochemicals market continued to fall in September, following the drop in upstream energy prices, according to the just-released monthly Platts Global Petrochemical Index (PGPI).
The PGPI is a benchmark basket of seven widely used petrochemicals and is published by Platts, a leading global energy, petrochemicals and metals information provider and a top source of benchmark price references.
The September PGPI was down $43, or 3%, from August to $1,384 per metric ton (/mt). On a year-over-year basis, petrochemical prices edged down less than 1% from September 2013.
"There were two factors contributing to lower prices in the petrochemical markets this past month," said Jim Foster, Platts editorial director of petrochemical analytics.
"First, both crude oil and naphtha prices have been falling. This has reduced the cost of making petrochemical products. Second, the prices of petrochemical products have climbed too high for buyers, resulting in a fall in demand and slower sales."
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Platts Global Petrochemical Index
PLATTS GLOBAL PETROCHEMICAL INDEX IN DOLLARS PER METRIC TON The daily price reflected as a monthly average
September 2014
Monthly % Change
Annual % change
September 2013
August 2014
July 2014
June 2014
May 2014
$1,384 -3% -0.25% $1,388 $1,446 $1,427 $1,387 $1,360
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Platts Global Petrochemical Index
The chart above shows the daily end-of-day Platts Global Petrochemical Index (PGPI) price in red and also displays the 20-day PGPI moving average (MA) in blue.
Olefins
Prices of olefins - a group of hydrocarbon compounds which are the building blocks to many petrochemical products used to produce everyday goods - were slightly lower in September.
Both ethylene and propylene prices decreased by 1% month over month, mainly due to falling naphtha prices.
Polyethylene, a plastic manufactured from ethylene, saw prices decline 3% in September, while polypropylene prices were down 2% over the same period.
Aromatics
Prices of aromatics - a group of scented hydrocarbons with benzene rings used to make a variety of petrochemicals - fell sharply in September, due to reduced downstream demand. Market sources said prices had moved too high and impacted the profitability of downstream products. As a result, benzene prices fell 9% in September, the largest drop of all components in the PGPI.
Paraxylene posted the second-largest fall - dropping 7% in September to $1,207/mt. Toluene prices were down 4% in September to $1,080/mt.
The price decreases in global petrochemical markets occurred amid a mixed performance by global equity markets in September. The Nikkei 225 climbed 5% during the month, while the Dow Jones Industrial Average fell less than 1% and the London Stock Exchange Index (FTSE) fell 3%.
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Platts Global Petrochemical Index
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A key ingredient to styrene, used in packaging, various plastics, nylon and other textiles.
Global benzene prices fell 9% in September to $1,264 per metric tons (/mt), down from $1,385/mt in August, according to the just-released PGPI data expressed as a monthly average.
Supply of benzene increased globally as downstream demand for styrene floundered, putting downward pressure on prices.
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Platts Global Benzene Price Index
A key ingredient to polyethylene, the most widely used plastic in textiles and polyvinyl chloride (PVC), widely used in construction for window frames, water pipes, garden furniture and packaging.
Global ethylene prices slipped 1% in September to $1,404 per metric ton (/mt), down from $1,424/mt in August, according to the just-released PGPI data expressed as a monthly average.
Ethylene prices trended lower as supplies continued to grow following plant restarts after several production outages.
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Platts Global Ethylene Price Index
Used in thin film for packaging and coatings for cables and injection moulds.
Prices of low-density polyethylene were down 3% in September to $1,641 per metric ton (/mt), according to the just-released PGPI data expressed as a monthly average.
Polyethylene prices were falling, following prices of its raw material ethylene.
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Platts Global LDPE Price Index
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An aromatic petrochemical that can be used as a solvent in paint thinner, rubber, glue, lacquers, polyurethane foam for furniture, and as an octane booster in gasoline. It also can be converted into benzene and xylenes.
Prices of toluene, an aromatic petrochemical included in the PGPI, declined 4% in September to $1,080 per metric ton (/mt), according to the just-released PGPI data expressed as a monthly average.
Toluene prices were moving in line with crude oil and naphtha, which also trended lower in September.
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Platts Global Toluene Price Index
Used in fibers and polyethylene terephthalate (PET) for plastic bottles.
Paraxylene prices dropped 7% to $1,207 per metric ton (/mt) in September, according to the just-released PGPI data expressed as a monthly average.
Aromatic petrochemicals were lower across the board as feedstocks naphtha and crude oil prices fell.
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Platts Global Paraxylene (PX) Price Index
A key ingredient to one of the most versatile plastics used in bottle caps, automotive components, instrument panels, interior trims.
Prices of propylene, the raw olefin input used in the manufacturing of polypropylene, fell just 1% in September to $1,330 per metric ton (/mt), according to the just-released PGPI data expressed as a monthly average. This was down $10/mt from the August average of $1,340/mt.
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Platts Global Propylene Price Index
Used in reusable containers and automotive components, electric equipment, ropes, carpets and textiles.
Prices for the second polymer component of the PGPI- polypropylene (PP) - fell 2% in September to $1,620 per metric ton (/mt, according to the just-released PGPI data expressed as a monthly average.
The price moved in line with propylene, an olefin that is polymerized into polypropylene.
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Platts Global Polypropylene Price Index
To access a summary of the May performance of each of the seven key petrochemicals included in the PGPI, visit: http://www.platts.com/news-feature/2014/petrochemicals/pgpi/index.
The PGPI reflects a compilation of the daily price assessments of physical spot market ethylene, propylene, benzene, toluene, paraxylene, low-density polyethylene (LDPE) and polypropylene as published by Platts and is weighted by the three regions of Asia, Europe and the United States. Used as a price reference, a gauge of sector activity, and a measure of comparison for determining the profitability of selling a barrel of crude oil intact or refining it into products, the PGPI was first published by Platts in August 2007.
Published daily in a real-time news service Platts Petrochemical Alert and other Platts publications, the PGPI is anchored by Platts' robust and long-established price assessment methodology and the firm's 100-year history of energy price reporting.
Platts petrochemicals experts are available for media interviews. A sample list of experts may be found at the Platts Media Center. For more information on petrochemicals, visit the Platts website at www.platts.com.
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About PGPI
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Platts petrochemicals experts are available for media interviews. A sample list of experts may be
found at the Platts Media Center. For more information on petrochemicals, visit the Platts website
at www.platts.com. Additional media contact: Elizabeth Catalano at [email protected]
or +44 207 176 6024.
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About Platts
