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Platts Global Petrochemical Index April 2015

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© 2015 Platts, McGraw Hill Financial. All rights reserved. 1 April 30, 2015 A Platts.com News & Analysis Feature Polymers – Aromatics – Olefins – Solvents Platts Global Petrochemical Index Prices rose again in March after a 6 month decline – how far will they rebound?
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Page 1: Platts Global Petrochemical Index April 2015

© 2015 Platts, McGraw Hill Financial. All rights reserved. 1

April 30, 2015

A Platts.com News & Analysis Feature

Polymers – Aromatics – Olefins – Solvents

Platts Global Petrochemical Index Prices rose again in March after a 6 month decline – how far will they rebound?

Page 2: Platts Global Petrochemical Index April 2015

Prices in the $3-trillion-plus global petrochemicals market climbed another 9% month over month in March, for a second month of rebound following six consecutive months of falling prices.

Petrochemical prices, expressed as a monthly average, increased $81 per metric ton (/mt) from February to $954/mt in March, 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.

"Even though crude prices were down slightly on average in March, petrochemicals were still responding to the nearly 20% increase in crude prices in February, and the 24% increase in February naphtha prices," said Jim Foster, director of petrochemical analysis at Platts. "In February, petrochemicals only advanced 3%, but were able to post gains of nearly 10% in March."

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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

March 2015

Monthly % Change

Annual % change

March 2014

February 2015

January 2015

December 2014

November 2014

$954 9% -30% $1,370 $872 $850 $984 $1,205

Page 3: Platts Global Petrochemical Index April 2015

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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.

Page 4: Platts Global Petrochemical Index April 2015

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Platts Global Petrochemical Index

Petrochemicals are used to make plastic, rubber, nylon and other consumer products and are utilized in manufacturing, construction, pharmaceuticals, aviation, electronics and nearly every commercial industry.

Olefins

Prices of olefins -- a group of hydrocarbon compounds which are the building blocks to many petrochemical products used to produce everyday goods -- jumped approximately 10% in March as the market reacted to February's strong naphtha prices.

Ethylene prices gained 10% in March from February to $922/mt and propylene prices were up 9% to $933/mt.

Polyethylene and polypropylene, plastics manufactured from ethylene and propylene respectively, posted similar month-over-month price gains.

Global polyethylene prices climbed to $1,270/mt, up 9%, while polypropylene prices were up 11% to $1,284/mt.

Page 5: Platts Global Petrochemical Index April 2015

Aromatics

Prices of aromatics -- a group of scented hydrocarbons with benzene rings used to make a variety of petrochemicals -- also saw increases in March.

Benzene saw the largest gain of any component in the PGPI, with prices climbing 15% from February to $727/mt in March.

Toluene prices rose 7% to $690/mt, while paraxylene prices were flat at 788/mt.

Global equity markets were mixed in March. The London Stock Exchange Index (FTSE) posted a 2.5% drop and the Dow Jones Industrial Average wasn't far behind, falling 2%. However, the opposite was true of the NIKEEI 225, which was up 2% last month.

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Platts Global Petrochemical Index

Page 6: Platts Global Petrochemical Index April 2015

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Page 7: Platts Global Petrochemical Index April 2015

A key ingredient to styrene, used in packaging, various plastics, nylon and other textiles.

Global benzene prices fell 18% in January to $604 per metric ton (/mt) from $740/mt in December, according to the just-released PGPI data expressed as a monthly average.

Tumbling crude and naphtha prices continued to drag benzene prices down.

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Platts Global Benzene Price Index

Page 8: Platts Global Petrochemical Index April 2015

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 tumbled 15% in January to $834 per metric ton (/mt), from $977/mt in December, according to the just-released PGPI data expressed as a monthly average.

Ethylene prices were falling in tandem with decreasing naphtha prices.

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Platts Global Ethylene Price Index

Page 9: Platts Global Petrochemical Index April 2015

Used in thin film for packaging and coatings for cables and injection moulds.

Prices of low-density polyethylene decreased 12% in January to $1,240 per metric ton (/mt), according to the just-released PGPI data expressed as a monthly average.

Polyethylene prices fell at a rate slower than feedstock ethylene, which saw prices plunge 15% in January..

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Platts Global LDPE Price Index

Page 10: Platts Global Petrochemical Index April 2015

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Page 11: Platts Global Petrochemical Index April 2015

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.

Toluene, an aromatic petrochemical included in the PGPI, slid 17% in January to $554 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 prices, which declined 24% and 15% respectively in January.

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Platts Global Toluene Price Index

Page 12: Platts Global Petrochemical Index April 2015

Used in fibers and polyethylene terephthalate (PET) for plastic bottles.

Paraxylene prices plummeted 12% to $729 per metric ton (/mt) in January, according to the just-released PGPI data expressed as a monthly average.

Prices of aromatic petrochemicals were lower across the board as prices of feedstocks naphtha and crude oil tumbled.

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Platts Global Paraxylene (PX) Price Index

Page 13: Platts Global Petrochemical Index April 2015

A key ingredient to one of the most versatile plastics used in bottle caps, automotive components, instrument panels, interior trims.

Prices of propylene, the olefin raw input used in the manufacturing of polypropylene, plunged 10% month over month in January to $786 per metric ton (/mt), according to the just-released PGPI data expressed as a monthly average.

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Platts Global Propylene Price Index

Page 14: Platts Global Petrochemical Index April 2015

Used in reusable containers and automotive components, electric equipment, ropes, carpets and textiles.

Prices for the second polymer component of the PGPI-- polypropylene-- fell 14% from December to $1,165 per metric ton (/mt) in January, according to the just-released PGPI data expressed as a monthly average.

The fall was in line with feedstock propylene, which fell 10% during the same period.

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Platts Global Polypropylene Price Index

Page 15: Platts Global Petrochemical Index April 2015

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Our Petrochemicals Market Reports, providing exclusive content and benchmark price assessments, can now be accessed online via Platts Market Center and our new mobile app.

Whether you’re interested in Polymers, Aromatics or Olefins, our complete online and mobile package ensures you always stay connected to the market.

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Page 16: Platts Global Petrochemical Index April 2015

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/2015/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

Page 17: Platts Global Petrochemical Index April 2015

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals, metals

and agriculture information and a premier source of benchmark prices for the physical and futures

markets. Platts' news, pricing, analytics, commentary and conferences help customers make

better-informed trading and business decisions and help the markets operate with greater

transparency and efficiency. Customers in more than 150 countries benefit from Platts’ coverage of

the biofuels, carbon emissions, coal, electricity, oil, natural gas, metals, nuclear

power, petrochemical, shipping and sugar markets. A division of McGraw Hill Financial (NYSE:

MHFI), Platts is headquartered in New York with approximately 900 employees in more than 15

offices worldwide. Additional information is available at http://www.platts.com.

About McGraw Hill Financial: McGraw Hill Financial (NYSE: MHFI), a financial intelligence company,

is a leader in credit ratings, benchmarks and analytics for the global capital and commodity

markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones

Indices, Platts, CRISIL, J.D. Power and McGraw Hill Construction. The Company has approximately

17,000 employees in 29 countries. Additional information is available at www.mhfi.com.

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

Page 18: Platts Global Petrochemical Index April 2015

© 2015 Platts, McGraw Hill Financial. All rights reserved.

For more information, visit: www.platts.com Or contact your regional commodity specialist:

ASIA EMEA AMERICAS

Ihsan Rahim Maria Vasari Andrew Aitken +65.6532.6429 +44.20.1716.6294 +1.713.655.2221 [email protected] [email protected] [email protected] Olivier Geleoc +44.20.7176.3856 [email protected]


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