July ICIS petrochemical price index surges 15%

07 July 2009 16:52  [Source: ICIS news]

HOUSTON (ICIS news)--The ICIS Petrochemical Index (IPEX) rocketed to 225.45 in July, up 29.12 points in one of the single largest monthly gains in the index’s history.

The index rose by 15% from 196.33 in June as chemical values rose for the fifth straight month. The index is now at a eight-month high, though still 41% below its peak of 379.74 in August.

It was spurred on as buyers became more confident in making purchases while producers were cautious against raising manufacturing rates until more signs of economic recovery were visible.  

Prices for nearly every chemical in the index rose across the globe. The increase in butadiene (BD) was especially steep, up 37% in Asia, 57% in Europe and 67% in the US. 

BD prices jumped as plant closures around the world tightened supply and feedstock naphtha became dearer.

In the US, BD producers pushed through a 14 cents/lb ($309/tonne or €222/tonne) increase in July contract prices, which reached 45 cents/lb. European manufacturers pushed third-quarter BD contracts to €635/tonne from €400/tonne.

Benzene prices were also strong, growing 23.3% in Europe, 24.8% in the US and 33% in Asia. The gains reflected the higher prices for crude oil.

The only chemical to see a substantial weakness in global pricing was paraxylene (PX), which was in the opposite situation as butadiene. Low demand and new production capacity chopped PX prices down by 1.0% in Asia and 9.7% in Europe and prices grew only 1.0% 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 12 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, polycarbonate (PC), styrene, methanol, BD, polyvinyl chloride (PVC), polyethylene (PE), polypropylene (PP) and polystyrene (PS).

($1 = € 0.72)

Note: Historical IPEX data is available from ICIS upon request. Please contact stephen.burns@icis.com

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By: Ben Lefebvre
+1 713 525 2653

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