Unprecedented changes are taking place in the relative prices of the main ‘building block’ petrochemicals. In turn, these could have major implications for downstream users, all along the key value chains. Today’s post looks at the changes taking place in ethylene’s relative price to the other olefins, propylene and butadiene. On Monday, the blog will […]
Chemicals and the Economy
European propylene, butadiene, prices rise above ethylene
A remarkable thing happened this week in European olefin markets. Contract prices for butadiene and propylene were finalised for April/Q2 at higher levels than for ethylene. This has never happened before, in Europe or other regions. The chart, based on ICIS pricing data, shows how ethylene (blue line) has normally been the highest priced olefin. […]
Propylene/Ethylene ratio drops
Propylene prices have been relatively strong in recent years, compared to ethylene. As the chart shows, they averaged 90% of the ethylene price between 2003-8. Now, however, they have returned to the historical 70% – 85% range. Propylene’s recent strength was well founded: • Benzene prices rose in 2004, making PP more attractive versus PS […]
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