Prices in the $3-trillion-plus global petrochemicals market climbed 2% to $1,350 per metric ton (/mt) in December, according to the just-released monthly average of the Platts Global Petrochemical Index (PGPI), a benchmark basket of seven widely used petrochemicals. This follows a drop of 2% in November.

But on a year-over-year basis, petrochemical prices were up 16% from the December 2011 average price of $1,161/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.

“Benzene prices, which were up 7% from November, continued to push the global petrochemical index higher,” said Jim Foster, Platts senior editor of petrochemical analytics. “Benzene contracts hit record highs in recent months as demand continued to outpace supply. Global toluene prices also rose on the back of high benzene prices and continued strength in the xylene markets.”

The 7% increase in benzene, a petrochemical used in packaging, various plastics, nylon and other textiles, was the largest of the seven components that make up the PGPI. The December average price of benzene was $1,495/mt, up from a November average of $1,398/mt.

Toluene, which can be converted into benzene and xylenes, rose 4% to $1,332/mt in December, up from $1,274/mt in November. The global paraxylene index also was up 4% in December, to $1,565/mt, up from $1,511/mt in November.

Polymer prices too posted gains in December despite mixed results in the olefins markets. The Platts Global Polypropylene Index edged up 2% last month to $1,470/mt, despite a 2% decline in the Platts Global Propylene Index during the same period. Propylene is the olefin raw material input for the production of polypropylene.

Tags: Platts