Last updated on April 17, 2014 at 12:55 EDT

/C O R R E C T I O N — Platts/

September 6, 2012

In the news release, Platts: August Petrochemical Prices Rise 7% on Production Costs, issued Sept. 6, 2012 by Platts over PR Newswire, we are advised by the company that in the first paragraph, the end of the last sentence should read “a 6.4% increase from the prior month” rather than “a 16% increase from the prior month” as originally issued inadvertently. The complete, corrected release follows:

Platts: August Petrochemical Prices Rise 7% on Production Costs

LONDON, Sept. 6, 2012 /PRNewswire/ — Prices in the $3-trillion-plus global petrochemicals market rose seven percent to $1,262 per metric ton (/mt) in August, according to the just-released monthly average of the Platts Global Petrochemical Index (PGPI), a benchmark basket of seven widely used petrochemicals. This is up from the July average of $1,175/mt, which marked a 6.4% increase from the prior month.

Despite a second consecutive month of increase, petrochemicals prices in August continued to trade well below year-ago levels, down 10% from August 2011.

“Stronger oil and naphtha prices continue to put upward pressure on petrochemical prices,” said Jim Foster, Platts senior editor of petrochemical analytics. “That trend was most obvious in the olefins markets – with both ethylene and propylene seeing a climb in production costs due to higher naphtha prices.”

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

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

     Aug-'12        Monthly % Change      Annual % change               Aug-'11                   Jul-'12               Jun-'12         May-'12         Apr-'12
     -------        ----------------      ---------------               -------                   -------               -------         -------         -------
             $1,262                    7%               - 10%                   $1,397                    $1,175                $1,104          $1,279          $1,444
             ------                  ---                 ----                    ------                    ------                ------          ------          ------

Along with the higher production costs for some products, there was also market anticipation of a demand increase for other petrochemicals – mostly aromatics. Renewed interested in styrene and polystyrene was expected to provide increased demand for benzene – which is a raw input for styrene. However, benzene was the only product in the PGPI to lose value in August, down 3% to $1,245/mt.

Seasonally, market observers anticipate an increase in demand for paraxylene as garment manufacturers use more polyester ahead of the winter clothing season. Paraxylene can be converted into polyester.

Six of the seven components of the PGPI rose in August. Ethylene had the largest gain, climbing 15% to $1,228/mt.

As most PGPI components gained price ground, equity market performance was muted, with three key indexes, the Dow Jones Industrial Average (DJIA), the London Stock Exchange Index (FTSE), and the Nikkei 225 up no more than one to two percent.

To access a summary of the August performance of each of the seven key petrochemicals included in the PGPI, visit this link: http://www.platts.com/newsfeature/2012/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 Platts Petrochemical Alert, a real-time news service, 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, consult Platts Media Center. For more information on petrochemicals, visit the Platts website at www.platts.com.

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals and metals 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 carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, and shipping 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 www.platts.com.

About The McGraw-Hill Companies: McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.


Source: PR Newswire