Prices in the $3-trillion-plus global petrochemicals market fell less than 1% to $1,351 per metric ton (/mt) in October, according to the monthly average of the Platts Global Petrochemical Index (PGPI), a benchmark basket of seven widely used petrochemicals. This follows a 7.5% increase in September to an average of $1,357/mt.
But on a year-over-year basis, petrochemical prices were up 13% from the October 2011 average price of $1,200/mt, the Platts data showed.
Platts is a top source of benchmark price references.
Petrochemicals are used to make plastic, rubber, nylon and other materials for consumer products, packaging, manufacturing, construction, pharmaceuticals, aviation, electronics and nearly every commercial industry.
“Without much direction from the supply and demand side, petrochemical prices have been closely aligned with energy for the past month,” said Jim Foster, Platts senior editor of petrochemical analytics. “Prices of crude oil and naphtha edged lower and with them, the PGPI at large.”
The average price of Dated Brent crude oil in October was $111.75 per barrel (/b), marking a 0.7% drop from the September average of $112.50/b. The Platts Global Naphtha Index slipped to $639.75/mt from the September level of $657.15.
In particular, naphtha weighed on ethylene and propylene prices in October. Both monthly indices fell 1% during the month to $1,342/mt and $1,205/mt, respectively. In September, the ethylene index averaged $1,350/mt, while the propylene index averaged $1,214/mt/.
The polyolefin markets also were lower, falling faster than their raw input olefin prices. The low-density polyethylene index fell 3% to $1,483/mt in October, down from $1,532/mt in September. Polyethylene posted the largest price drop of all seven components in the PGPI Index. Polypropylene, another polyolefin included in the PGPI, slipped 3% in October to an average price of $1,469/mt, following a September level of $1,513/mt.
Aromatic petrochemical prices posted small gains in October, with the largest increase in the global benzene market. The benzene index climbed 3% to an average $1,331/mt in October, up from $1,290/mt in September. The increase in benzene was supported by supply shortages in the United States.
“Shipping delays from Asia raised concerns about supplies, pushing some U.S. benzene buyers to raise their bids in October, which in turn, translated in slightly higher benzene prices,” Foster said.
