Prices in the $3 trillion-plus global petrochemicals market fell more than 5.3% in June to $873 per metric ton (/mt), according to the just-released monthly average of the S&P Global Platts Petrochemical Index (PGPI), a benchmark of seven widely used petrochemicals. This follows a similar drop in prices in May.
On a year-over-year basis, global petrochemical prices were up 4.6% from the June 2016 average price of $834.57/mt, the Platts data showed. Platts is a leading global energy, petrochemicals and metals information provider and 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.
S&P GLOBAL PLATTS PETROCHEMICAL INDEX IN DOLLARS PER METRIC TON | |||||||
| The daily price reflected as a monthly average | |||||||
| Jun-17 | Monthly % Change | Annual % Change | Jun-16 | May-17 | Apr-17 | Mar-17 | Feb-17 |
| $873.00 | -5.3% | 4.6% | $834.57 | $922.14 | $958.51 | $994.26 | $1,029.18 |
Six of the seven PGPI components traded lower on average in June as feedstock prices were lower. Only propylene prices posted modest gains of less than 1%. Crude oil prices in June fell 7.7%, averaging $46.56/barrel. Naphtha prices were down 7.8% to $395.07/mt ($44.31/barrel). Ethane prices in the United States fell 4.3% in June, averaging $3.67/MMBtu.
AROMATICS
Benzene prices were down 1.3% month-on-month to $750.68/mt, a relatively small drop compared to feedstock prices. Toluene prices fell 5.1% to $606.72/mt. Paraxylene prices settled 3.2% lower in June at $764.01/mt.
OLEFINS
Olefins prices were mixed in June, with ethylene prices falling and propylene prices climbing. Ethylene averaged $893.13/mt, down 12.2% from May. The double-digit percentage drop was the largest drop of all seven components included in the PGPI. Propylene prices were relatively flat in June, averaging $788.53/mt, up $3.05 (0.4%) from May.
POLYMERS
Polyethylene prices globally were down 4.8% in June to $1235.19/mt, down from $1296.91/mt in May. Polypropylene prices were down 1.1% to $1,049.14/mt.
PGPI
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-