May IPEX steady as crude costs are balanced by demand

LONDON (ICIS)–Petrochemical prices moved only marginally in May on the increased oil price and the continued varied demand environment, ICIS data showed on Friday.

The ICIS Petrochemical Index (IPEX), an indicator based on a basket of petrochemical prices in the three key producing regions, was down just 0.6% for May month on month from April, on higher prices in northwest Europe but lower prices in northeast Asia. Petrochemicals prices in the US remained stable although a number of monthly contracts did not settle by the beginning of June when the May IPEX was set.

The crude cost pass through had helped push the April IPEX up 4.9% from March.

The IPEX represents the price movements in US dollars of a basket of petrochemicals over the course of each month.

Olefins and polyolefins monthly contract prices for May were agreed higher in northwest Europe. PVC (polyvinyl chloride) prices were somewhat higher but benzene prices were down. The Europe IPEX for May was up 1.6%

In northeast Asia, the price trend in May was largely downward, although propylene prices were higher (polypropylene prices were down). The northeast Asia May IPEX was down 1.9%.

Petrochemicals price movements in the US were mixed in May, with butadiene, toluene and methanol prices all moving higher but benzene and polypropylene (PP) prices tracking downward. May contract prices had not been agreed in the US for ethylene, paraxylene (PX), styrene and PVC by the beginning of June so are excluded from the current IPEX. The May IPEX also, does not include price movements for styrene in northeast Asia.

The regional and global IPEX numbers for June will be subject to revision when these prices are agreed.

The 12 petrochemicals in the IPEX basket at ethylene, propylene, butadiene, benzene, toluene, paraxylene, styrene, polystyrene (PS), polyethylene (PE), polypropylene, methanol and PVC.

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