Argaam Petrochemical Index falls 3.6 pts as basic materials, polymers decline

10/08/2015 Argaam - Exclusive

Argaam Petrochemical Index, which measures the average change in prices for a basket of petrochemicals produced in the Gulf, declined 3.6 points to 215 points by the end of last week, as the prices of basic materials and polymers continued to decrease.

 

Argaam Petrochemical Index

215.0

Argaam Index (August 9)

( 1.6 % )

Weekly change

+ 5.9 %

6 months change

( 24.8 % )

1-year change

 

 

Naphtha feedstock decreased $25 to $460 a ton last week.

 

The prices of Saudi natural gas liquids (NGL) such as propane and butane are set at 28 percent below the Japanese Naphtha benchmark, excluding freight costs.

 

Prices of Naphtha ​​including shipping costs to Japan (August 9)

1-year change

6 months change

Weekly change

Price

Product

( 50 % )

( 10 % )

( 5 % )

460

Naphtha *

( 50 % )

( 10 % )

( 5 % )

331

Propane **

* CFR  Japan.

** Approximate price in Saudi Arabia (28% discount for Naphtha).

 

The prices of basic materials fell sharply last week in correlation with Brent Crude and bearish market sentiment.

 

Ethylene declined $40 to $1,040 a ton; propylene dropped $10 to $840 a ton, while styrene decreased $60 to $1,110 a ton.

 

Polymers dropped as buyers anticipated further declines on the back of the lower feedstock prices.

 

High-density polyethylene (HDPE) fell $20 to $1,210 a ton; polypropylene decreased $20 to $1,080 a ton, and polystyrene declined $40 to $1,260 a ton.

 

MEG dropped to its lowest since February, losing $35 to $775 a ton on higher stockpiles in eastern China and lower demand from polyester producers. MEG is a key raw material in the manufacture of polyester (PET).

 

Basic Petrochemicals ( August 9) - Asian markets

1-year change

6 months change

Weekly change

Price

Product

( 31 % )

+ 20 %

( 4 % )

1,040

Ethylene*

( 39 % )

+ 4 %

( 1 % )

840

Propylene*

( 46 % )

+ 10 %

( 6 % )

720

Benzene*

( 30 % )

+ 18 %

( 5 % )

1,110

Styrene*

( 12 % )

+ 14 %

--

360

Methanol  (Methanex)**

( 20 % )

+ 15 %

( 2 % )

275

Methanol (China)***

( 30 % )

+ 9 %

+ 1 %

710

MTBE****

* FOB-East Asia (Japan, Taiwan and Korea).

** ACP "Methanex"

*** Methanol prices in China.

**** Spot – Singapore.

 

Polymers Prices (August 9) - Asian markets

1-year change

6 months change

Weekly change

Price

Product

( 25 % )

+ 4 %

( 2 % )

1,210

Polyethylene*

( 29 % )

+ 7 %

( 1 % )

1,090

Polypropylene

( 27 % )

+ 12 %

( 3 % )

1,260

Poly Styrene

( 20 % )

+ 4 %

--

850

PVC

( 1 % )

+ 6 %

--

2,475

PCB

* High-density polyethylene.

 

Intermediates (August 9) - Asian markets

1-year change

6 months change

Weekly change

Price

Product

( 23 % )

( 2 % )

( 4 % )

775

Spot MEG - china

( 11 % )

+ 16 %

--

1020

MEG (SABIC)

( 40 % )

+ 6 %

( 2 % )

625

PTA

 

Fertilizers (August 9) - Gulf Arab Countries

1-year change

6 months change

Weekly change

Price

Product

( 16 % )

( 14 % )

--

280

Urea

( 18 % )

( 13 % )

--

395

Ammonia

+ 1 %

--

--

480

DAP*

* Export price from Saudi Arabia

 

Titanium Dioxide (August 9)

1-year change

6 months change

Weekly change

Price

Product

( 16 % )

( 9 % )

--

2350

Tio2 (Asia)

( 27 % )

( 10 % )

--

2305

Tio2 (Europe)

( 11 % )

( 3 % )

--

3080

Tio2 (America)

 

End Products for Saudi Petrochemical Companies

Finished Products

Company

Polyethylene , polypropylene , poly styrene , ethylene glycol (MEG), methyl tert- butyl ether (MTBE), benzene , urea , ammonia , PVC, and PTA

SABIC

Urea, ammonia.

SAFCO

Polyethylene, polypropylene, ethylene glycol (MEG), methyl tert- butyl ether (MTBE), benzene.

YANSAB

Polyethylene, polypropylene, propylene. (TiO2)

Tasnee

Polyethylene, polypropylene, ethylene glycol (MEG), polycarbonate, and bisphenol A.

Saudi Kayan

Polyethylene, polypropylene, propylene oxide, and refined petroleum products.

Petro Rabigh

Polyethylene, polypropylene, polystyrene.

Petrochem

Polyethylene, polypropylene.

Sahara Petrochemicals

Styrene, benzene, Cyclohexene, propylene.

Saudi Group

Methanol, Butanol, acetic acid, vinyl acetate monomer.

Sipchem

Polypropylene

Advanced

Polypropylene

Alujain

Formaldehyde - improvers concrete

CHEMANOL

Epoxy resin, hydrochloric acid, liquid caustic soda, soda granules.

NAMA

Ammonia and DAP

MAADEN

 

About Argaam Petrochemical Index:

 

Argaam Petrochemical Index is the only index that provides weekly capacity-weighted measures for the average changes of international prices of several petrochemical products manufactured in the Gulf Arab countries. 

 

Internally consumed products, which are used as feedstock for producing other petrochemicals, represent smaller weights on the index. These products— such as ethylene, propylene and ammonia— are not sold regularly in the international market.

 

Final products sold in international markets such as polyethylene, polypropylene, MTBE, MEG, and urea represent the biggest weights on the index.

 

Naphtha prices, the main feedstock benchmark, correlate negatively with the index. The weights of products on the index are reviewed periodically.

 

As of January 1, 2002 the index started at 100 points.

 

Argaam Reports "

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