HOUSTON, Jan. 13, 2016 /PRNewswire/ -- Prices in the $3-trillion-plus global petrochemicals market in December, expressed as a monthly average, were $796 per metric ton (/mt), down 1.1% or $9 per mt, from November's average, according to the just-released monthly Platts Global Petrochemical Index (PGPI).
Prices also closed the month on a low note, with an end-of-month closing physical price that was 1.75% lower than the end-of-month price in November. This is a reverse in trend from the previous two months, when markets showed consecutive gains.
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.
"The primary olefins of ethylene and propylene both showed slight gains, while aromatics softened in December, comparing month to month values," said Hetain Mistry, managing analyst for petrochemicals at Platts, a leading global provider of energy and commodities information and benchmark price assessments. "Ethylene was marginally higher, by 0.20% and propylene was 1.4% higher, both remaining steady on tight supply, especially in Asia. In terms of aromatics, benzene and paraxylene saw the biggest shift downwards, with values down 5% for both, following upstream energy trends, as both crude and naphtha posted losses in December."
Crude oil prices were down 14% in December and naphtha prices were down 8%.
PLATTS GLOBAL PETROCHEMICAL INDEX IN DOLLARS PER METRIC TON
The daily price reflected as a monthly average
|
Dec
2015
|
Monthly %
Change
|
Annual %
Change
|
Dec
2014
|
Nov
2015
|
Oct
2015
|
Sep
2015
|
Aug
2015
|
|
$796
|
-1.08%
|
-19%
|
$984
|
$805
|
$785
|
$786
|
$888
|
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 followed the same trend last month with ethylene and propylene prices posting gains. Propylene, which can be made at both the refinery and the cracker, rose by 1.4% to $555 per metric ton (/mt) in December, up $7.75 from November. Ethylene, which is primarily produced at crackers, climbed 0.23% to $820/mt in December, up $2/mt from November.
Polyethylene and polypropylene, plastics manufactured from ethylene and propylene respectively, were both down in December as each derivative reversed the trend observed in the feedstock price. Global polyethylene prices were down 1% to $1,235/mt, while polypropylene prices fell 0.6% to $1,098/mt.
AROMATICS
Prices of aromatics – a group of scented hydrocarbons with benzene rings used to make a variety of petrochemicals – were all down last month. Benzene was down 5% to $619/mt in December from a November level of $652/mt. Toluene prices fell 4% in December to $587/mt, down $25/mt from November. Paraxylene, the final aromatic included in the PGPI, was down 5.3% in December to $714/mt, a decline of $40/mt from November.
Petrochemical prices largely moved in line with global equity markets in December, lower across the board. The Dow Jones Industrial Average declined 2.6%, while The London Stock Exchange Index (FTSE) was down 1.8%. The NIKKEI 225 was down 3.6%.
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.
CONTACT
Global, Americas, Asia: Kathleen Tanzy, + 1 917 331 4607, kathleen.tanzy@platts.com
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, Platts is based in London with more than 1,000 employees in more than 15 offices worldwide. Additional information is available at www.platts.com.
About McGraw Hill Financial: McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company's iconic brands include Standard & Poor's Ratings Services, S&P Capital IQ and SNL, S&P Dow Jones Indices, Platts, CRISIL and J.D. Power. The Company has approximately 20,000 employees in 31 countries. Additional information is available at www.mhfi.com.
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SOURCE Platts
