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.”

Tags: Platts