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Prices in the $3-trillion-plus global petrochemicals market in September fell to lows not seen since May 2009 as values across the energy complex remained soft, according to the just-released monthly Platts Global Petrochemical Index (PGPI). Petrochemical prices, expressed as a monthly average, fell $102 per metric ton (/mt) From August to $786/mt in September. This is the second straight month where the average monthly price has fallen more than $100.
The PGPI is a benchmark basket of seven widely used petrochemicals and is published by Platts, a leading global provider of energy, petrochemicals, metals and agriculture information and a top source of benchmark price references.
“Crude and naphtha prices were mostly stable to slightly higher during the past month,” said Jim Foster, head of analysis for petrochemicals and agriculture at Platts, a leading global provider of energy and commodities information and benchmark price assessments. “We’re still seeing petrochemical prices declining as recent drops in crude oil and naphtha prices continue to reach the consumers.”
PLATTS GLOBAL PETROCHEMICAL INDEX IN DOLLARS PER METRIC TON
The daily price reflected as a monthly average
|
Sept 2015
|
Monthly % Change
|
Annual % Change
|
Sept 2014
|
Aug 2015
|
July 2015
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June 2015
|
May 2015
|
|
$786
|
-11%
|
-43%
|
$1,384
|
$888
|
$1,013
|
$1,103
|
$1092
|
On average, crude oil prices were up 79 cents per barrel (/b) or 2% in September from August. Naphtha prices were also up 2% or 5 cents per gallon (/gal). Prices of olefins, a group of hydrocarbon compounds which are the building blocks to many petrochemical products used to produce everyday goods, tend to track naphtha prices since naphtha is the most widely used feedstock in petrochemical cracker processes worldwide. This past month, however, olefins prices tumbled as much as 24%, which is on par with the degree of the price decline in naphtha during the past two months.
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
As a group, olefins prices were sharply lower last month. Propylene, which can be made at both the refinery and the cracker, slipped 24% to $559 per metric ton (/mt) in September, down $180 from August. Ethylene, which is primarily produced at crackers, fell 13% to $761/mt in September, down $114 from August.
Polyethylene and polypropylene, plastics manufactured from ethylene and propylene respectively, were both lower in September. Global polyethylene prices fell 5% to $1,239/mt, while polypropylene prices fell 7% to $1,143/mt.
AROMATICS
Prices of aromatics – a group of scented hydrocarbons with benzene rings used to make a variety of petrochemicals – were also lower last month. Benzene posted the largest drop, falling 12% to $586/mt in September, down $80 from August. Toluene prices fell 4% in September to $609/mt, down $28 from August. Paraxylene, the final aromatic included in the PGPI, was down 3% in September to $765/mt, down $20 from August.
Petrochemical prices moved in line with global equity markets in September. The Dow Jones Industrial Average fell 1% while The London Stock Exchange Index (FTSE) fell 5%. The NIKKEI 225 was down 8%.
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.
