September IPEX lower in all three regions

LONDON (ICIS)–The ICIS Petrochemical Index (IPEX) decreased in September by 1.2% from the revised August figure of 337.75*, following weaker performances for all three regional sub-indices.

Of all three regions, the European sub-index fell by the most in percentage terms. In Europe, every single price in the IPEX product basket dropped in dollar terms, highly impacted by a 1.6% strengthening of the dollar and weaker oil prices. The euro-denominated butadiene (BD) contract price stayed unchanged in euro terms but went down by 1.6% on the stronger dollar.

European ethylene prices dropped by 2.8% in dollar terms, following lower feedstock costs, which had a direct impact on downstream markets. Polyethylene (PE) prices dropped by 1.9% and polyvinyl chloride (PVC) prices by 2.2%. Toluene prices showed the greatest decrease, falling by 3.3%  as a result of limited market activity during the summer holiday period.

Toluene prices also showed the biggest drop of all assessed prices in the US, falling by 11.3%. Propylene contract prices showed the highest rise at 7.4%, on the back of higher spot prices and tight supply. Downstream markets were directly influenced, leading polypropylene (PP) prices to rise by 6.2%. After reaching a record level in July, benzene contract prices dropped in August by 4.2% on the back of lower spot prices.

In Asia, aside from slightly higher ethylene and methanol prices, all products of the IPEX basket went down. With a drop of 7.0%, BD prices showed by far the biggest decrease. Following a fire at a major downstream polybutadiene rubber producer in South Korea, BD demand slowed and prices dropped. The Asian sub-index dropped by 1.3%, which was the second biggest fall of the three sub-indices.

Published at the beginning of each month, the IPEX provides an independent indicator of average changes in world petrochemical prices. The IPEX product basket of 12 essential petrochemical products comprises ethylene, propylene, BD, benzene, toluene, paraxylene (PX), styrene, methanol, PVC, PE, PP and polystyrene (PS).

Dating back to January 1993, historical ICIS prices for these products in the US, western Europe and northeast Asian markets have been weighted by regional nameplate capacity to generate the monthly index value.



*The August IPEX has been revised from 336.77 to 337.75 following settlements of July contract prices for ethylene, PX and styrene in the US. The September index will be subject to further revision once August contract prices settle for ethylene, PX, styrene and PVC in the US, PX and styrene in Asia and PX in Europe.

Download global and regional ICIS IPEX data here.

View the full IPEX methodology