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© 2014 Platts, McGraw Hill Financial. All rights reserved.
June global petrochemical prices climbed for
the first time in five months
Platts Global Petrochemical Index
July, 14, 2014
1
LONDON, July 14, 2014 - Prices in the $3-trillion-plus global petrochemicals market climbed $26 per metric ton
(/mt) in June, up 2% from the previous month and the first price increase in five months, 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 index value climbed to $1,387/mt, which is up 6% from the same period in 2013. The price increase during
June mirrored gains in both the naphtha and crude oil markets. The largest price increase was in the global
paraxylene market, where prices rose in $114 to $1,271/mt, up 10% from May.
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.
2
Platts Global Petrochemical Index
PLATTS GLOBAL PETROCHEMICAL INDEX IN DOLLARS PER METRIC TON
The daily price reflected as a monthly average
June
2014
Monthly
% Change
Annual %
change
June
2013
May
2014
Apr.
2014
Mar.
2014
Feb.
2014
$1,387 2% 6% $1,312 $1,360 $1,363 $1,371 $1,387
3
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 petrochemicals;
were mixed in June. Ethylene prices in June averaged $1,320/mt, up 4% from May due to higher naphtha costs.
Polyethylene, a polymer produced from ethylene, also saw higher prices for the month, up 1% in June to
$1,661/mt.
Moving in the opposite direction of ethylene and naphtha, global propylene prices, slipped 4% to $1,332/mt.
Propylene prices fell as stocks rose in the U.S. a record 3.8 million barrels to 60 million barrels for the reporting
week ended July 4, according to the U.S. Energy Information Administration. Polypropylene, the polymer
produced from propylene, saw a price drop of 1% in June from May to $1,629/mt.
Aromatics
Prices of aromatics; a group of scented hydrocarbons with benzene rings used to make a variety of
petrochemicals; were stronger in June. Paraxylene posted the largest gain, up 10% to $1,271/mt. This followed
an average price in May of $1,157. Price increases were seen throughout aromatics. Toluene prices climbed 7%
to $1,138/mt, while benzene prices rose 6% to $1,310/mt.
Global petrochemical prices moved in line with most global equity markets during June. The Nikkei 225 rose
3.5% during the month, while the Dow Jones Industrial Average edged up 1%. The London Stock Exchange
Index (FTSE) fell 2% during June.
4
Platts Global Petrochemical Index
5
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A key ingredient to styrene, used in packaging, various plastics, nylon and other textiles.
Global benzene prices climbed 6% in June to $1,385 per metric tons (/mt), up from $1,310/mt in May, according
to the just-released PGPI data expressed as a monthly average. Tight supplies in the United States, which
caused material to be shipped from other regions, pushed the price higher.
6
Platts Global Benzene Price Index
7
Sign-up: Free Benzene Price Report
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 4% in June to $1,320 per metric ton (/mt), up from $1,275/mt in May, according to
the just-released PGPI data expressed as a monthly average. The gain was largely attributed to higher naphtha
prices.
8
Platts Global Ethylene Price Index
Used in thin film for packaging and coatings for cables and injection moulds.
Prices of low-density polyethylene rose less than 1% in June to $1,660 per metric ton (/mt), according to the
just-released PGPI data expressed as a monthly average. The $16-per-metric-ton increase from May was largely
due to stronger prices of ethylene, which is polymerized to produce polyethylene.
9
Platts Global LDPE Price Index
10
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, climbed 7% or $76 per metric ton (/mt) in June to
$1,138/mt, according to the just-released PGPI data expressed as a monthly average. Supply tightness in the
United States, caused by a number of production issues, provided the price support.
11
Platts Global Toluene Price Index
Used in fibers and polyethylene terephthalate (PET) for plastic bottles.
Paraxylene prices climbed $114 per metric ton (/mt) in June, up 10%, to $1,271/mt, according to the just-
released PGPI data expressed as a monthly average. This compares to the May average of $1,157/mt. Aromatics
were higher across the board, but paraxylene posted the largest gains of all chemicals in the PGPI.
12
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, were down 4% in June to
$1,332 per metric ton (/mt), according to the just-released PGPI data expressed as a monthly average. This is
down $53/mt from the May average of $1,386/mt. The price decline was largely attributed to supplies building
globally.
13
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 $13 per metric ton
(/mt) in June from the May average of $1,641/mt, according to the just-released PGPI data expressed as a
monthly average. This follows falling prices in the global propylene markets. Propylene is an olefin that is
polymerized into polypropylene.
14
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.
15
About PGPI
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 McGraw Hill Financial (NYSE:
MHFI), 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 McGraw Hill Financial: McGraw Hill Financial (NYSE: MHFI), a financial intelligence company,
is a leader in credit ratings, benchmarks and analytics for the global capital and commodity
markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones
Indices, Platts, CRISIL, J.D. Power and McGraw Hill Construction. The Company has approximately
17,000 employees in 29 countries. Additional information is available at www.mhfi.com.
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.
16
About Platts

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June global petrochemical prices climbed for the first time in five months

  • 1. © 2014 Platts, McGraw Hill Financial. All rights reserved. June global petrochemical prices climbed for the first time in five months Platts Global Petrochemical Index July, 14, 2014 1
  • 2. LONDON, July 14, 2014 - Prices in the $3-trillion-plus global petrochemicals market climbed $26 per metric ton (/mt) in June, up 2% from the previous month and the first price increase in five months, 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 index value climbed to $1,387/mt, which is up 6% from the same period in 2013. The price increase during June mirrored gains in both the naphtha and crude oil markets. The largest price increase was in the global paraxylene market, where prices rose in $114 to $1,271/mt, up 10% from May. 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. 2 Platts Global Petrochemical Index PLATTS GLOBAL PETROCHEMICAL INDEX IN DOLLARS PER METRIC TON The daily price reflected as a monthly average June 2014 Monthly % Change Annual % change June 2013 May 2014 Apr. 2014 Mar. 2014 Feb. 2014 $1,387 2% 6% $1,312 $1,360 $1,363 $1,371 $1,387
  • 3. 3 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.
  • 4. Olefins Prices of olefins; a group of hydrocarbon compounds which are the building blocks to many petrochemicals; were mixed in June. Ethylene prices in June averaged $1,320/mt, up 4% from May due to higher naphtha costs. Polyethylene, a polymer produced from ethylene, also saw higher prices for the month, up 1% in June to $1,661/mt. Moving in the opposite direction of ethylene and naphtha, global propylene prices, slipped 4% to $1,332/mt. Propylene prices fell as stocks rose in the U.S. a record 3.8 million barrels to 60 million barrels for the reporting week ended July 4, according to the U.S. Energy Information Administration. Polypropylene, the polymer produced from propylene, saw a price drop of 1% in June from May to $1,629/mt. Aromatics Prices of aromatics; a group of scented hydrocarbons with benzene rings used to make a variety of petrochemicals; were stronger in June. Paraxylene posted the largest gain, up 10% to $1,271/mt. This followed an average price in May of $1,157. Price increases were seen throughout aromatics. Toluene prices climbed 7% to $1,138/mt, while benzene prices rose 6% to $1,310/mt. Global petrochemical prices moved in line with most global equity markets during June. The Nikkei 225 rose 3.5% during the month, while the Dow Jones Industrial Average edged up 1%. The London Stock Exchange Index (FTSE) fell 2% during June. 4 Platts Global Petrochemical Index
  • 5. 5 Trial Polymerscan today Click here to start your trial today
  • 6. A key ingredient to styrene, used in packaging, various plastics, nylon and other textiles. Global benzene prices climbed 6% in June to $1,385 per metric tons (/mt), up from $1,310/mt in May, according to the just-released PGPI data expressed as a monthly average. Tight supplies in the United States, which caused material to be shipped from other regions, pushed the price higher. 6 Platts Global Benzene Price Index
  • 7. 7 Sign-up: Free Benzene Price Report 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.
  • 8. 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 4% in June to $1,320 per metric ton (/mt), up from $1,275/mt in May, according to the just-released PGPI data expressed as a monthly average. The gain was largely attributed to higher naphtha prices. 8 Platts Global Ethylene Price Index
  • 9. Used in thin film for packaging and coatings for cables and injection moulds. Prices of low-density polyethylene rose less than 1% in June to $1,660 per metric ton (/mt), according to the just-released PGPI data expressed as a monthly average. The $16-per-metric-ton increase from May was largely due to stronger prices of ethylene, which is polymerized to produce polyethylene. 9 Platts Global LDPE Price Index
  • 10. 10 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.
  • 11. 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, climbed 7% or $76 per metric ton (/mt) in June to $1,138/mt, according to the just-released PGPI data expressed as a monthly average. Supply tightness in the United States, caused by a number of production issues, provided the price support. 11 Platts Global Toluene Price Index
  • 12. Used in fibers and polyethylene terephthalate (PET) for plastic bottles. Paraxylene prices climbed $114 per metric ton (/mt) in June, up 10%, to $1,271/mt, according to the just- released PGPI data expressed as a monthly average. This compares to the May average of $1,157/mt. Aromatics were higher across the board, but paraxylene posted the largest gains of all chemicals in the PGPI. 12 Platts Global Paraxylene (PX) Price Index
  • 13. 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, were down 4% in June to $1,332 per metric ton (/mt), according to the just-released PGPI data expressed as a monthly average. This is down $53/mt from the May average of $1,386/mt. The price decline was largely attributed to supplies building globally. 13 Platts Global Propylene Price Index
  • 14. Used in reusable containers and automotive components, electric equipment, ropes, carpets and textiles. Prices for the second polymer component of the PGPI – polypropylene – fell $13 per metric ton (/mt) in June from the May average of $1,641/mt, according to the just-released PGPI data expressed as a monthly average. This follows falling prices in the global propylene markets. Propylene is an olefin that is polymerized into polypropylene. 14 Platts Global Polypropylene Price Index
  • 15. 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. 15 About PGPI
  • 16. 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 McGraw Hill Financial (NYSE: MHFI), 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 McGraw Hill Financial: McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power and McGraw Hill Construction. The Company has approximately 17,000 employees in 29 countries. Additional information is available at www.mhfi.com. 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. 16 About Platts