Petchem Prices Up 3% from July, 30% from 2010-Source Downstream/platts - September 14,2011

Petchem Prices Up 3% from July, 30% from 2010 by Platts September 12, 2011 Prices of petrochemicals, a $3 trillion global business, averaged $1,397 per metric ton (/mt) in August, according to just-released data from Platts, a leading global energy and metals information provider. The Platts Global Petrochemical Index (PGPI), a basket of seven widely used petrochemicals, is up 3% from July, reflecting stabilization despite rapidly worsening economic sentiment and big declines in global stock markets. But the August monthly index average is up 30% from this same time a year ago. Platts Global Petrochemical Index (US$/metric ton) Aug. 2011 Aug 2010 % Chg. July 2011 % Chg. June 2011 May 2011 PGPI monthly avg. $1,397 $1,071 +30 $1,352 +3 1,519 1,541 SOURCE: Platts 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. The PGPI reflects a compilation of daily physical spot market price assessments of 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. It is utilized as a price reference, a gauge of sector activity, and a measure of comparison for determining the profitability of selling crude oil intact or refining it into products. To access a summary for each of the seven key petrochemicals included in the PGPI, http://www.platts.com/newsfeature/2011/pgpi/index. First published by Platts in August 2007, the PGPI peaked at $1,679/mt on July 14, 2008 before plummeting to a low of $491/mt on December 5, 2008, on the heels of the global financial meltdown. 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.