Global cost of auto petchem raw materials hits 13 month high

Mark Victory

11-Oct-2016

LONDON (ICIS)–The worldwide cost of petrochemical raw materials in an average automobile is at a 13-month high, analysis of the Global ICIS Basket of Automotive Petrochemicals (IBAP) showed on Tuesday.

The September Global IBAP rose by $7.01/tonne of total vehicle weight (TTVW) in September – an month-on-month increase of 2.5%.

Rises in the Europe and US IBAP were predominantly the result of higher polypropylene (PP) costs. PP is the most used plastic in automotive production, representing more than a quarter of the plastic used in an average automobile – although percentages vary from model to model.

The rise in PP prices was the result of an increase in the monthly monomer contract, despite weaker demand. Price rises in the US were also the result of feedstock cost increases.

In China, price rises were more evenly spread, with all prices rising except for PE and base oils. Price rises in September were the result of traditional trading patterns which typically see restocking following the August holiday lull.  

The automotive industry is a major global consumer of petrochemicals which contributes more than a third of the raw material costs of an average vehicle. ICIS tracks the movement of petrochemical raw material costs in auto production both globally and regionally with the weighted ICIS Basket of Automotive Petrochemicals (IBAP).

ICIS produces a monthly Global Automotive report covering the major automotive chemicals markets, the auto-industry, the IBAPs and macroeconomic trends. For more information on the report and details on how to subscribe, please
 click here

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?