Price changes across the petrochemical markets - The latest Global Petrochemicals Index from Platts for September 2013 - for a range of Polymers, Aromatics and Olefins

1. Platts Global Petrochemical Index
September 2013
Global Petrochemical Prices Rose Nearly 2% in September
October 2013
© 2013 Platts, McGraw Hill Financial. All rights reserved.

2. Petrochemical Prices Were Up 2.3%
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LONDON, October 6, 2013 - Prices in the $3-trillion-plus global petrochemicals
market rose 1.9% in September to $1,388 per metric ton (/mt), the fourth
consecutive month of price gains, according to the monthly Platts Global
Petrochemical Index (PGPI) report released today, coinciding with the
European Petrochemical Association (EPCA) annual meeting in Berlin. 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.
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On a year-over-year basis, the PGPI data showed petrochemical prices were
up 2.3% from the September 2012 average of $1,357/mt.
•
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.
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3. Platts September Index

4. Platts Petrochemical Alert

5. Olefins - PGPI, posted a $31/mt rise in
September to $1,292 /mt
Olefins – a group of hydrocarbon compounds which are the building blocks to many
petrochemicals – had mixed fortunes, with a 4% year-over-year decline in ethylene
prices, while propylene prices rose 13% year over year.
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“Global propylene prices were supported by the €110/mt ($141/mt) rise in
European contract prices over the last four months, due in part to stronger
polypropylene demand, planned or unscheduled plant outages, and persistently
strong prices of naphtha, the main feedstock for steamcracker operators in Europe
and Asia,” said Shahrin Ismaiyatim, Platts editorial director, petrochemicals
analytics. Commenting from the sidelines of the EPCA, Ismaiyatim went on to say,
“However, early indicators of October price patterns are indicating that the rise in
propylene prices may have reached its peak.”
•
Ethylene, the first olefin component in the PGPI, posted a $31/mt rise in
September to $1,292 /mt, representing a 2% gain from July. Meanwhile, propylene
prices averaged September at $1,367/mt, up $18/mt or 1% month over month.
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6. POLYMERS - Low-Density Polyethylene
Index climbed 2%
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Prices of polymers – the raw material for plastics – continued to post modest gains
in September as Chinese buyers restocked their inventories ahead of the weeklong holiday in October. In addition, polyethylene suppliers to Latin America cited
optimism in the polymers markets ahead of Brazil decreasing its polyethylene
import tariff from 20% to 14% from October 1.
Meanwhile, China’s General Administration of Customs showed August imports of
low-density polyethylene were up 6% from July, while imports of other grades of
polyethylene showed decreases.
The Platts Global Low-Density Polyethylene Index climbed 2% in September to
$1,663/mt, up from $1,628/mt in August. The Platts Global Polypropylene index,
the second polymers component in the PGPI, was also up 2% in September to
$1,618/mt, from 1, 588/mt in August.
Petrochemical prices in September performed in line with the global equity
markets. The Dow Jones Industrial Average (DJIA) closed September at 15,129.67,
up 2% from August, while the London Stock Exchange Index (FTSE) was up a
marginal 0.3% at 6462.20. The Nikkei 225 was up a strong 8% in September to
14,455.80.

7. Benzene Price Index
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The chart above shows the daily end-of-day Platts Global Benzene Price Index price in red and also
displays the 20-day moving average in blue.
Global benzene prices rose a further 3% in September to $1,303 per metric tons (/mt), up from
$1,267/mt in August, according to the just-released PGPI data expressed as a monthly average.
Strong styrene prices, a downstream product of benzene, continued to test year-high prices
especially in Asia, where supply tightness was caused by a confluence of planned and unplanned
plant outages.

8. Toluene Price Index
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The chart above shows the daily end-of-day Platts Global Toluene Price Index price in red and also displays the 20 day moving average in blue.
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Toluene, an aromatic petrochemical included in the PGPI, saw a 2% price increase in September to $1,162/mt. This
is up from the August level of $1,136/mt, according to the just-released PGPI data expressed as a monthly
average.
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On a year-over-year comparison, the September 2013 price was 8% less than the September 2012 price of
$1,266/mt, as the weak demand in the U.S. was exacerbated by a rise in supply from Asia and Europe.

9. Paraxylene Price Index
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The chart above shows the daily end-of-day Platts Global Paraxylene Price Index price in red and
also displays the 20-day moving average in blue.
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Paraxylene prices fell 1% in September to an average of $1,437/mt, according to the just-released
PGPI data expressed as a monthly average. This compares to the August average of $1,447/mt.
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The decline in September prices was likely attributable to the low production margins due to weak
downstream markets, as well as the start-up of a mega paraxylene production plant in China.

10. Polypropylene Price Index
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The chart above shows the daily end-of-day Platts Global Polypropylene Price Index price in red and
also displays the 20-day moving average in blue.
Prices for the second polymer component of the PGPI – polypropylene (PP) – climbed 2% to
$1,618/mt in September, according to the just-released PGPI data expressed as a monthly average.
This was up from $1,588/mt in August. The price increase was likely attributed to PP producers
managing their production margins following the rise in the price of feedstock propylene.

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12. LDPE Price Index
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The chart above shows the daily end-of-day Platts Global Low-Density Polyethylene Price Index
price in red and also displays the 20-day moving average in blue.
Low-density polyethylene (LDPE) prices increased 2% in September to $1,663/mt, in line with the
rise in ethylene, its raw input.
This is compared to an August price of $1,628/mt, according to the latest PGPI data expressed as a
monthly average. Re-stocking of LDPE inventory in China supported the price rise.

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14. Ethylene Price Index
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The chart above shows the daily end-of-day Platts Global Ethylene Price Index price in red and also
displays the 20-day moving average in blue.
Global ethylene prices climbed 2% in September to $1,292/mt, according to the just-released PGPI
data expressed as a monthly average. This was up from $1,260/mt in August.
Ethylene prices continued to be supported by firm naphtha prices. Naphtha is used primarily in
Europe and Asia to produce ethylene, and naphtha prices in both continents were up 2% month
over month.

15. PolymerUpdate – Platts Polymer Report

16. Propylene Price Index
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The chart above shows the daily end-of-day Platts Global Propylene Price Index price in red and also
displays the 20-day moving average in blue.
Prices of propylene, the olefin raw input used in the manufacturing of polypropylene, rose 1% on a
month-over-month basis in September to $1,367/mt, according to the just-released PGPI data
expressed as a monthly average.
This compared to an August level of $1,349/mt and was likely attributed to stronger European
contract prices, supported by stable derivatives demand.

17. PGPI is anchored by Platts’ robust and longestablished price assessment methodology
• The PGPI reflects a compilation of the daily price assessments of physical
spot market ethylene, propylene, benzene, toluene, paraxylene, lowdensity 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.
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Published daily in a real-time news service Platts Petrochemical Alert and
other Platts publications, the PGPI is anchored by Platts’ robust and longestablished price assessment methodology and the firm’s 100-year history
of energy price reporting.
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Platts petrochemicals experts are available for media interviews, consult
Platts Media Center. For more information on petrochemicals, visit the
Platts website at www.platts.com.

18. Ethylene and co-products share in cracker
margins
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19. Share (%) of margin spread by olefin
70
64
60
54
48
48
50
45
40
Ethylene
Propylene
19
18
19
18 17
16
13
12
10
Butadiene
23
21
20
Benzene
28
30
9 9
11
8
0
2009
2010
2011
2012
2013
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20. Thank you,
© 2013 Platts, McGraw Hill Financial. All rights reserved.
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