July IPEX balanced on prices generally higher in Asia and lower in Europe

LONDON (ICIS)–Petrochemical and polymers prices fluctuated in July with little in the way of a discernible trend, ICIS data showed at the start of August.

The ICIS global petrochemical index (IPEX) was up 0.6% in July from June. And while the US sub-index was flat, the Europe index was down 3.4% and the northeast Asia index up 2.9%.

Olefins prices were largely flat to rising in the US and in Europe in US dollar terms, while the more spot-driven markets in northeast Asia reflected stronger upward influence.

Northeast Asia butadiene prices were up 9.6% from June, for example, while the increase in Europe was 2.3% in euro terms or a more meagre 0.8% month to month in US dollars.

Aromatics markets were mixed. Benzene prices were 4.7% higher in northeast Asia, up 0.7% in northwest Europe (up 2.3% in euro terms) and 7.0% higher in the US. Meanwhile toluene prices were down 11.1% in Europe and down 2.7% and 2.9% respectively in the US and in Asia.

Polyethylene and polypropylene prices were lower in Europe in July but higher in Asia. Methanol prices in Europe were much higher having recovered to €240/tonne from the second quarter contract price of €202/tonne.

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

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

The pressure from lower-priced oil on the upstream petrochemical prices and on the major polymers is reflected in the year to date IPEX of 210.86. It compares with a 2015 average of 227.82 and a 2014 average of 316.38.

The regional and global IPEX numbers for July will be subject to revision when contract prices are agreed for US ethylene and styrene and for styrene in northeast Asia.

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

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