Global Petrochemical Prices Fell 5% in March on Weak Demand

1. Global Petrochemical Prices Fell
5% in March on Weak Demand
[10-April-2013]

2. Overview
• LONDON, April 10, 2013 /PRNewswire/ -- Prices in the $3-trillion-plus global petrochemicals
market fell 5% to $1,378 per metric ton (/mt) in March, according to the just-released monthly
average of the Platts Global Petrochemical Index (PGPI), a benchmark basket of seven widely
used petrochemicals. This followed a 6% increase in February.
• On a year-over-year basis, petrochemical prices also were down 5% from the March 2012
average price of $1,445/mt, according to data published by Platts, a leading global energy,
petrochemicals and metals information provider and a top source of benchmark price
references.
• 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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3. PLATTS GLOBAL PETROCHEMICAL INDEX IN
DOLLARS PER METRIC TON
• 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. If you have trouble
viewing the graphic, visit this link: PGPI Averages
• "Of the three groups of chemicals making up the Platts Global Petrochemical Index –aromatics,
polymers and olefins – the aromatics posted the largest price decline in March," said Jim
Foster, Platts senior petrochemicals analyst. "Asian demand for xylenes wasn't there last
month, so toluene was not being converted to xylenes or benzene," he explained. "Styrene
plants were shut down, which resulted in length in the global benzene market."
• The average price of paraxylene was $1,472/mt in March, down 10% from the February level
and marking the first decline since June 2012, when the average paraxylene price fell 16%.
Toluene, which can be converted into xylene and benzene, fell 8% in March to $1,197/mt, on
weakened Asian paraxylene demand.
• Global benzene prices also posted an 8% decline in March, dropping to an average of
$1,301/mt. Benzene is primary raw material input for styrene production. With several styrene
plants shut during March for routine maintenance, demand for benzene declined.
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4. Olefin Prices
• Olefins prices were lower in March as downstream plastic demand ebbed and raw input costs
dropped. The global propylene index in March fell 6% to an average price of $1,331/mt,
following a February level of $1,411/mt. The price decline in propylene, which is used to
produce polypropylene, also spurred a pull-back in the March global polypropylene price index,
which slipped 3% to $1,528/mt.
• Ethylene, the second olefin component of the PGPI, saw a 4% price index retreat in March to
$1,349/mt, following the February average of $1,403/mt. Polyethylene, which is produced from
ethylene, saw a similar price decline last month. It was down 3% to $1,538/mt.
• Petrochemical prices moved counter to price trends in the global equity markets in March. The
Dow Jones Industrial Average (DJIA) was up 4% last month, while the London Stock Exchange
Index (FTSE) edged up 1% and the Nikkei 225 jumped 7%.
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5. Summary
• To access a summary of the March performance of each of the seven key petrochemicals
included in the PGPI, visit this link:
http://www.platts.com/newsfeature/2013/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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6. About Platts
• About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals,
metals and agriculture information and a premier source of benchmark prices for the physical
and futures markets. Platts' news, pricing, analytics, commentary and conferences help
customers make better-informed trading and business decisions and help the markets operate
with greater transparency and efficiency. Customers in more than 150 countries benefit from
Platts' coverage of the biofuels, carbon emissions, coal, electricity, oil, natural
gas, metals, nuclear power, petrochemical, shipping and sugar markets. A division of The
McGraw-Hill Companies (NYSE: MHP), Platts is headquartered in New York with
approximately 900 employees in more than 15 offices worldwide. Additional information is
available at http://www.platts.com.
• About The McGraw-Hill Companies: The McGraw-Hill Companies, to be renamed McGraw
Hill Financial (subject to shareholder approval), is a powerhouse in credit ratings, benchmarks
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& Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D.
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• CONTACT
Kathleen Tanzy
212-904-2860
Kathleen_tanzy@platts.com
• SOURCE Platts 6