June IPEX underscores downward trend for global petrochemical prices

Nigel Davis

05-Jul-2016

LONDON (ICIS)–Lower petrochemical and polymer prices in northeast Asia helped depress the global ICIS Petrochemical Index for June, data showed on Tuesday.

The global IPEX was down 1.2% in June at 215.6 with the northeast Asia index down 3.1% at 198.6.

Prices for the major olefins, for the aromatics, benzene and toluene, for styrene and for the major polymers were down for the month in northeast Asia compared with May.

The major petrochemical markets in the region in June were influenced by the rising oil price and higher naphtha prices in May, flatter demand growth and rising capacities for some major products and downstream intermediates.

The regional US IPEX was flat month to month in June at 217.4 while the IPEX for northwest Europe was up 1.3% at 255.5.

Petrochemical prices globally gained significant ground in the second quarter as the higher oil price fed through into the cost base, particularly of naphtha-based players, and was successfully passed on. The second-quarter global IPEX to date is up 8.3% on the first quarter of the year.

Generally, however, the downward petrochemical and polymer price trend has continued with the Q2 2016 IPEX down 14.7% relative to Q2 2015.

At 206.0, the year to date 2016 global IPEX is down from the average of 223.8 in 2015 and 310.9 in 2014.

The global IPEX has been on a downward trend since May 2011, a high point reached as prices recovered from the depths of the 2008/09 downturn. The index is anchored on a baseline of 100 for January 1993.

The IPEX will be subject to revision when the June US monthly contract price for styrene is agreed.

June 2016 IPEX

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

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?