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Global petrochemical prices fell 1% in August

Platts Global Petrochemical Index

September 12, 2014

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LONDON, September 12, 2014 Prices in the $3-trillion-plus global petrochemicals market dropped 1% in August as energy prices fell globally, according to the just-released monthly Platts Global Petrochemical Index (PGPI).

The PGPI is a benchmark basket of seven widely used petrochemicals and is published by Platts, a leading global energy, petrochemicals and metals information provider and a top source of benchmark price references.

The August PGPI fell $19 from July to $1,427 per metric ton (/mt) and reversed the increases of the last two months. On a year-over-year basis, petrochemical prices were up 5% from August 2013.

"For the past two months, petrochemical production was reduced because of delayed plant restarts, which helped push prices higher," said Jim Foster, Platts editorial director of petrochemical analytics. "As those issues were resolved, prices in August started to fall. Downward price pressure also followed the declining prices of crude oil and naphtha - which petrochemical products are derived from.“

Petrochemicals are used to make plastic, rubber, nylon and other consumer products and are utilized in manufacturing, construction, pharmaceuticals, aviation, electronics and nearly every commercial industry.

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Platts Global Petrochemical Index

PLATTS GLOBAL PETROCHEMICAL INDEX IN DOLLARS PER METRIC TON The daily price reflected as a monthly average

August 2014

Monthly % Change

Annual % change

August 2013

July 2014

June 2014

May 2014

April 2014

$1,427 -1% 5% $1,362 $1,446 $1,387 $1,360 $1,363

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Platts Global Petrochemical Index

The chart above shows the daily end-of-day Platts Global Petrochemical Index (PGPI) price in red and also displays the 20-day PGPI moving average (MA) in blue.

Olefins

Prices of olefins -- a group of hydrocarbon compounds which are the building blocks to many petrochemical products used to produce everyday goods - were mixed in August.

Ethylene prices rose 1% month over month, due to strong gains in late July and early August, which took a downturn by the end of the month due to falling crude oil and naphtha prices.

Propylene, the other olefin component in the PGPI, was down 2% in August, led by softening energy prices.

Polyethylene, a polymer produced from ethylene, saw a price decline of 1% in August despite the slight increase in ethylene prices.

Polypropylene, a polymer produced from propylene, was down less than 1% last month.

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Platts Global Petrochemical Index

Aromatics

Prices of aromatics -- a group of scented hydrocarbons with benzene rings used to make a variety of petrochemicals - slipped in August, due to falling energy prices and lackluster demand from derivative markets.

Toluene, a petrochemical that can be blended into gasoline or converted into benzene and xylenes, posted the largest decrease of 6% month over month.

Benzene and paraxylene prices were both down 4% in August.

The price decreases in global petrochemical markets occurred amid a mixed performance by global equity markets in August.

The Nikkei 225 fell 1% during the month, while the Dow Jones Industrial Average climbed 3% and the London Stock Exchange Index (FTSE) advanced 1%.

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Platts Global Petrochemical Index

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A key ingredient to styrene, used in packaging, various plastics, nylon and other textiles.

Global benzene prices fell 4% in August to $1,385 per metric ton (/mt), down from $1,444/mt in July, according to the just-released PGPI data expressed as a monthly average. Supply of benzene increased globally as downstream demand for styrene floundered, pushing downward pressure on prices.

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Platts Global Benzene Price Index

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Weekly prices, market commentary and the latest industry news headlines delivered direct to your inbox.

Platts free Benzene price assessment overview report is delivered direct to your inbox bi-weekly, providing you with:

• Weekly price assessments and trend analysis

• Prices for key regional hubs

• The latest news headlines

• Global market commentary

Key benzene price assessments include:

• Benzene FOB Korea

• Benzene FOB Brazil

• Benzene CIF ARA

• Benzene FOB USG To start receiving your free price assessment report, sign-up here.

A key ingredient to polyethylene, the most widely used plastic in textiles and polyvinyl chloride (PVC), widely used in construction for window frames, water pipes, garden furniture and packaging.

Global ethylene prices rose 1% in August to $1,424 per metric ton (/mt), up from $1,405/mt in July, according to the just-released PGPI data expressed as a monthly average. Ethylene was the only component in the PGPI to see a price increase in August, which was mostly attributed to delayed petrochemical plant restarts that pushed prices up at the end of July and beginning of August. By the end of August, prices fell $30/mt during the month.

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Platts Global Ethylene Price Index

Used in thin film for packaging and coatings for cables and injection moulds.

Prices of low-density polyethylene dropped 1% in August to $1,693 per metric ton (/mt), according to the just-released PGPI data expressed as a monthly average. Like its primary raw material ethylene, LDPE prices posted solid gains at the end of July and beginning of August, but started to fall by the end of the month.

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Platts Global LDPE Price Index

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Sign-up: Free LDPE Price Report

Weekly prices, market commentary and the latest industry news headlines delivered direct to your inbox.

Platts free LDPE price assessment overview report is delivered direct to your inbox bi-weekly, providing you with:

• Weekly price assessments and trend analysis

• Prices for key regional hubs

• The latest news headlines

• Global market commentary

Key LDPE price assessments include:

• G-P FOB NEW

• G-P FAS Houston

• G-P CFR Brazil

• G-P CFR FE Asia

• FOB Middle East

To start receiving your free price assessment report, sign-up here.

An aromatic petrochemical that can be used as a solvent in paint thinner, rubber, glue, lacquers, polyurethane foam for furniture, and as an octane booster in gasoline. It also can be converted into benzene and xylenes.

Toluene, an aromatic petrochemical included in the PGPI, fell 6% in July to $1,125 per metric ton (/mt), according to the just-released PGPI data expressed as a monthly average. Toluene prices moved in line with crude oil and naphtha, which trended lower in August

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Platts Global Toluene Price Index

Used in fibers and polyethylene terephthalate (PET) for plastic bottles.

Paraxylene prices declined 3% to $1,303 per metric ton (/mt) in August, according to the just-released PGPI data expressed as a monthly average. Aromatic petrochemicals were lower across the board as feedstocks naphtha and crude oil prices fell.

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Platts Global Paraxylene (PX) Price Index

A key ingredient to one of the most versatile plastics used in bottle caps, automotive components, instrument panels, interior trims.

Prices of propylene, the olefin raw input used in the manufacturing of polypropylene, fell 2% in August to $1,340 per metric ton (/mt), according to the just-released PGPI data expressed as a monthly average. This was down $23/mt from the July average of $1,363/mt and led by softening energy prices.

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Platts Global Propylene Price Index

Used in reusable containers and automotive components, electric equipment, ropes, carpets and textiles.

Prices for the second polymer component of the PGPI - polypropylene - fell $5 per metric ton (/mt) in August from the July average of $1,658/mt, according to the just-released PGPI data expressed as a monthly average. The price moved in line with propylene, an olefin that is polymerized into polypropylene.

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Platts Global Polypropylene Price Index

To access a summary of the May performance of each of the seven key petrochemicals included in the PGPI, visit: http://www.platts.com/news-feature/2014/petrochemicals/pgpi/index.

The PGPI reflects a compilation of the daily price assessments of physical spot market ethylene, propylene, benzene, toluene, paraxylene, low-density polyethylene (LDPE) and polypropylene as published by Platts and is weighted by the three regions of Asia, Europe and the United States. Used as a price reference, a gauge of sector activity, and a measure of comparison for determining the profitability of selling a barrel of crude oil intact or refining it into products, the PGPI was first published by Platts in August 2007.

Published daily in a real-time news service Platts Petrochemical Alert and other Platts publications, the PGPI is anchored by Platts' robust and long-established price assessment methodology and the firm's 100-year history of energy price reporting.

Platts petrochemicals experts are available for media interviews. A sample list of experts may be found at the Platts Media Center. For more information on petrochemicals, visit the Platts website at www.platts.com.

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About PGPI

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Platts petrochemicals experts are available for media interviews. A sample list of experts may be

found at the Platts Media Center. For more information on petrochemicals, visit the Platts website

at www.platts.com. Additional media contact: Elizabeth Catalano at elizabeth.catalano@platts.com

or +44 207 176 6024.

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About Platts