The
$3 trillion-plus global petrochemical industry witnessed a 4 per cent fall in
October as upstream energy prices continued their downward spiral.
Petrochemical prices fell from $1,384/mt in September to $1,324/mt. On a year-on-year basis, petrochemical prices
slipped 2 per cent from the same month in 2013.
Prices
have fallen 10 per cent since October, around $8/mt a day, after a short period
of price rise. The steep decline in prices comes at a time when crude and
naphtha prices have also been falling. Brent prices declined by 10 per cent in
October, while naphtha prices fell by 15 per cent.
Petrochemicals
are used by a large number of industries, including construction,
pharmaceuticals, aviation, electronics and are used to make plastic, nylon,
rubber and other consumer goods.
Prices
of olefins, hydrocarbon compounds that function as the building blocks to
petrochemical products used to produce consumer products, also declined in
October. Ethylene prices slumped by 6 per cent to $1,324/mt, while propylene
prices fell by 1 per cent to $1,311/mt.
Polyethylene
also slipped by 2 per cent in October and polypropylene prices slipped by 1 per
cent during the same period.
Aromatics
are scented hydrocarbons with benzene rings. Prices of this compound fell
steeply in October. Benzene prices declined by 7 per cent to $1,181/mt, while
toluene prices dropped 8 per cent to $991/mt and paraxylene fell by 12 per cent
to $1,603/mt. The paraxylene market registered the largest fall.
The
falling petrochemical prices were accompanied by a sluggish global equity
market. The Nikkei 225 and Dow Jones Industrial Average saw a rise of 2 per
cent in October and the London Stock Exchange Index fell by 2 per cent during
the same period.
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A good article on the current global petrochemical prices..!!
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