Asia price falls push ICIS global petrochemical index down 3.8%

Nigel Davis

10-Nov-2014

LONDON (ICIS)–The ICIS Petrochemical Index (IPEX) has fallen 3.8% month to month reflecting much lower petrochemical spot and contract prices in northeast Asia and the impact of the weakening of the euro against the US dollar in October.

The global IPEX for November stands at 309.25 from the January 1993 base of 100. It is down 7% year on year.

The IPEX represents a basket of 12 petrochemicals and is calculated on a regional and global basis weighted by nameplate production capacity. It has been tracking downwards since July 2014.

The Asia sub-index is down 5.9%, reflecting steep falls in olefins prices in October, particularly butadiene, as well as lower aromatics prices.

Asia markets reacted over the course of the month to weaker supply/demand fundamentals for the aromatics and lower naphtha prices on the back of weakening crude oil.

Northeast Asia naphtha prices began falling at the end of August dropping sharply through September and most of October.

Asia butadiene prices were down $298/tonne on average month to month in October and ethylene down $149/tonne. Benzene was down $89/tonne and toluene down $97/tonne.

The European sub-index, fell 2.2% as the euro weakened further against the US dollar. The European IPEX is calculated on a dollar basis based on monthly contract prices that are settled in euros.

Ethylene and propylene monthly contract prices in Europe rolled over in October as did the styrene contract. The benzene monthly contract price was up only marginally, the euro/dollar exchange rate and supply availability playing a more significant role in price negotiations than the somewhat lower naphtha price.

In the US last month, benzene and toluene prices were sharply lower – benzene down by $142/tonne, dropping for the third month in a row driven down further by weak demand from styrene, weaker energy futures and improved supply availability. Propylene prices were higher on tighter availability.

US ethylene, paraxylene (PX) and styrene contract prices were not settled for October when the IPEX was calculated.

The October IPEX has been revised down from 323.42 to 321.58 following September contract price settlements for ethylene, styrene and PVC in the US and PX and styrene in Asia. The November IPEX will be subject to revision on settled October contracts for ethylene, PX and styrene in the US, PX in Europe and styrene in Asia.

November 2014 IPEX

Published at the beginning of each month, the IPEX provides an independent indicator of average change in world petrochemical prices.

The IPEX product basket of 12 essential petrochemical products comprises ethylene, propylene, BD, benzene, toluene, PX, styrene, methanol, PVC, PE, polypropylene 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.

Download global and regional ICIS IPEX data here.
View the full IPEX methodology

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?