US wholesale prices for chemicals and resins fall sharply in Oct

15 November 2011 14:20  [Source: ICIS news]

US Oct chems prices fallWASHINGTON (ICIS)--US producer prices for chemicals and plastic resins fell sharply in October from September, the Department of Labor said on Tuesday, contributing to an overall marginal 0.3% decline in prices at the production or wholesale level.

In its monthly report, the department’s Bureau of Labor Statistics said that wholesale prices for basic organic chemicals fell by 2.5% in October, more than offsetting a 1.1% gain in September.

The October decline in prices for organic chemicals at the producer level – also known as wholesale prices – resumed a downward trend in pricing that showed a 1.2% drop in August.

In plastic resins and related materials, wholesale prices were off by 3.9% in October, wiping out the 3.1% producer prices gain seen in September.  Here too, the trend in resins prices again turned downward following a 2.2% decline in August.

Overall, the bureau said that its producer price index (PPI) was largely unchanged in October.

While the index did slip marginally by 0.3% in October, that was attributed chiefly to a 1.4% drop in wholesale prices for energy goods, including a 2.4% fall in producer prices for gasoline.

Wholesale prices for foods rose by a slim 0.1% last month, the bureau said.

However, with energy and food products backed out of the overall data, the bureau said the so-called core index of producer prices was unchanged in October.

That flat line in the core index for last month brought an end to what had been 10 consecutive monthly increases, the bureau noted.

While the bureau compiles monthly price changes in hundreds of commodities and products, it does not provide any analysis of those shifts.

Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy

By: Joe Kamalick
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