ICIS October IPEX index falls by record 10.4%

07 October 2008 17:51  [Source: ICIS news]

HOUSTON (ICIS news)--The ICIS Petrochemical Index (IPEX) for October nosedived by 10.4% to 331.83 from the September reading of 370.45, for the deepest month-on-month decline in the nearly 16-year history of the index.

The previous record drop was a 10.3% plunge in October 1995, according to global chemical market intelligence service ICIS pricing.

Globally, all 12 products in the IPEX portfolio declined, led by a 20% drop in polypropylene.

Its feedstock propylene dropped by 11%, reflecting weaker crude oil pricing. NYMEX crude oil futures have declined by more than 35% since reaching a peak at $147.27 on 11 July.

Ethylene was another significant loser, falling 17% and pulling downstream derivatives lower. Polyethylene fell by 13% and polyvinyl chloride (PVC) dropped by 11%.

The relatively strongest product was butadiene, which fell by only by 2.6% globally. Declines of 8.9% in Asia and 7.8% in Europe were mitigated by a gain of 11% in the US.

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

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ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index

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