2% fall in global petrochemical prices in May on weaker olefins prices

14-Jun-13

Prices in the US$3 trillion plus global petrochemicals market fell 2% to US$1278/metric ton in May on the back of weaker raw inputs prices, according to the monthly Platts Global Petrochemical Index (PGPI). This follows a monthly PGPI average price of US$1309 in April. On a year-over-year basis, the data showed petrochemical prices were virtually unchanged, down less than 1%, from the May 2012 average price of US$1279/mt. "Ethylene prices continued to ease for the third consecutive month," said Jim Foster, Platts senior petrochemicals analyst. "Global ethylene prices averaged more than US$1400/mt in February, and since then, the price has fallen to below US$1200/mt. Most of that drop can largely be attributed to the April declines in crude oil and naphtha, from which distillates and other raw inputs to ethylene are made." Foster noted that more recently crude oil and naphtha prices have stabilized. Prices of both Dated Brent crude oil and naphtha rose less than 1% in May. The global ethylene price in May averaged US$1170/mt, down 6% from the April average of US$1249/mt. However, despite the price decline in this raw input, global polyethylene prices were largely unaffected. The Platts Global Low-Density Polyethylene Index was down less than 1% in May to US$1458/mt versus the April level of US$1460/mt. Propylene, the second olefin component of the PGPI, slipped 2% in May to US$1228/mt, down from US$1247/mt in April. Polypropylene prices followed propylene prices lower, declining 2% in May to US$1441/mt from US$1477/mt in April. The Platts Global Benzene Index edged up 1% in May to US$1322/mt from the April average of US$1315/mt. The Platts Global Paraxylene Index was the only aromatic component of the PGPI to post a loss last month, falling 2% to US$1379/mt.