Global IPEX up 5.4% in February on chemicals price rises across all regions

LONDON (ICIS)–The ICIS Petrochemical Index (IPEX) went up by 5.4% month on month in February on the back of rising chemical prices across all regions.

The global uptrend was mainly driven by stronger feedstock costs. In northwest Europe, the increase was more limited than in other regions due to softening energy costs and the weak demand seen from key downstream industries.

The northeast Asian market posted the largest increase, up by 6.1% over January. Sharp rises in butadiene (BD), ethylene or propylene prices offset a small decline in benzene values.

The US Gulf index went up by 4.2%, driven by bullish propylene, benzene, and polypropylene (PP) prices. Only toluene and ethylene posted a decline in their values in this region, while paraxylene (PX) has yet to be settled.

In northwest Europe, the IPEX jumped by 3.3% due to firmer toluene, benzene, propylene and ethylene prices, which offset declines in the polyethylene (PE) and PP markets.

The Global IPEX index for February is down by 14.2% year on year.

*A non-market adjustment was made by ICIS to US polyethylene (PE) prices on 10 February 2023, as well as to US PVC prices on 17 February 2023. These adjustments impacted the US IPEX values

The ICIS petrochemical index tracks the movement of prices for the 12 major petrochemicals and polymers: ethylene, propylene, butadiene, benzene, toluene, paraxylene (PX), polyethylene (PE), polypropylene (PP), styrene, polystyrene (PS), methanol and polyvinyl chloride (PVC) with the regional indexes weighted by capacity. The IPEX values are related to a January 2000 base of 100. IPEX values are subject to change retrospectively as monthly contract prices are settled.

Clarification: Recasts to add explanation of non-market adjustments to US PE and US PVC contract prices in February: *A non-market adjustment was made by ICIS to US polyethylene (PE) prices on 10 February 2023, as well as to US PVC prices on 17 February 2023. These adjustments impacted the US IPEX values

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