HOUSTON, April 27, 2015 /PRNewswire/ -- Prices in the
$3-trillion-plus global
petrochemicals market climbed another 9% month over month in March,
for a second month of rebound following six consecutive months of
falling prices. Petrochemical prices, expressed as a monthly
average, increased $81 per metric ton
(/mt) from February to $954/mt in
March, according to the just-released monthly Platts Global
Petrochemical Index (PGPI).
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.
"Even though crude prices were down slightly on average in
March, petrochemicals were still responding to the nearly 20%
increase in crude prices in February, and the 24% increase in
February naphtha prices," said Jim
Foster, director of petrochemical analysis at Platts. "In
February, petrochemicals only advanced 3%, but were able to post
gains of nearly 10% in March."
PLATTS GLOBAL
PETROCHEMICAL INDEX IN DOLLARS PER METRIC TON
|
The daily price
reflected as a monthly average
|
March
2015
|
Monthly
% Change
|
Annual %
Change
|
March
2014
|
Feb
2015
|
Jan
2015
|
Dec
2014
|
Nov
2014
|
$954
|
9%
|
-30%
|
$1,370
|
$872
|
$850
|
$984
|
$1,205
|
A chart shows the daily end-of-day Platts Global
Petrochemical Index (PGPI) price in red and also displays the
20-day PGPI moving average (MA) in blue. If you have trouble
viewing the graphic, visit this link: PGPI
Averages.
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
Prices of olefins – a group of hydrocarbon
compounds which are the building blocks to many petrochemical
products used to produce everyday goods – jumped approximately 10%
in March as the market reacted to February's strong naphtha prices.
Ethylene prices gained 10% in March from February to $922/mt and propylene prices were up 9% to
$933/mt.
Polyethylene and polypropylene, plastics manufactured from
ethylene and propylene respectively, posted similar
month-over-month price gains. Global polyethylene prices
climbed to $1,270/mt, up 9%, while
polypropylene prices were up 11% to $1,284/mt.
AROMATICS
Prices of aromatics – a group of scented
hydrocarbons with benzene rings used to make a variety of
petrochemicals – also saw increases in March. Benzene saw the
largest gain of any component in the PGPI, with prices climbing 15%
from February to $727/mt in March.
Toluene prices rose 7% to $690/mt,
while paraxylene prices were flat at $788/mt.
Global equity markets were mixed in March. The London Stock
Exchange Index (FTSE) posted a 2.5% drop and the Dow Jones
Industrial Average wasn't far behind, falling 2%. However, the
opposite was true of the NIKEEI 225, which was up 2% last
month.
A summary of the March performance of each of the seven key
petrochemicals included in the PGPI is available upon request.
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.
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 (NYSE: MHFI), Platts is based
in London with more than 1000
employees in more than 15 offices worldwide. Additional information
is available at http://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:
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Dow Jones Indices, Platts, CRISIL and J.D. Power. The Company has
approximately 17,000 employees in 30 countries. Additional
information is available at www.mhfi.com.
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SOURCE Platts