September ICIS IPEX falls on weakening energy

02 September 2008 23:07  [Source: ICIS news]

IPEX takes a diveHOUSTON (ICIS news)--The ICIS Petrochemical Index (IPEX) for September dropped for the first time since October of last year due partly to continued erosion in crude oil prices.

The IPEX for September dropped to 370.45, a decline of 2.4% from the August reading of 379.74.

Although the July and August IPEX surged on a run-up in energy sector prices, NYMEX crude eroded to $109.71/bbl on Tuesday from $125.10/bbl on 1 August, despite some interim fluctuation due to Tropical Storm Edouard and Hurricane Gustav.

The last declines in the index were in September and October 2007, when the IPEX dipped by a total of only about 0.5% due to declining energy prices and a weaker US dollar.

Only one of the 12 IPEX components rose in the September report.

Polyvinyl chloride (PVC) rose 2.2%, led regionally by a 7.8% increase in Europe and a 4.5% increase in the US. Sources cited heightened export demand and relatively strong feedstock ethylene, though olefins had begun to weaken during the month along with energy prices.

Among the IPEX portfolio, the biggest decliners were benzene and toluene, both dropping by slightly more than 5% globally due largely to the end of the US driving season.

Methanol, propylene and polypropylene (PP) also weakened in a range of 3.3-3.7%.

Published at the beginning of each month, the IPEX provides an independent indicator of average change in world petrochemical prices.

Dating back to January 1993, historical ICIS prices for a basket of essential petrochemical grades in the US, Western Europe, and the northeast Asian markets have been weighted by regional nameplate capacity to generate a monthly index value.

The IPEX product basket comprises ethylene, propylene, benzene, toluene, paraxylene, styrene, methanol, butadiene, PVC, polyethylene (PE), polypropylene (PP), and polystyrene (PS).

For more on these chemicals, visit ICIS chemical intelligence
To discuss issues facing the chemical industry, go to ICIS connect

By: Larry Terry
1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index