Global petrochemical prices rose 7% in August in response to higher production costs, but despite a second consecutive month of increases, the prices continue to trade well below year-ago levels, down 10% from August 2011.
Platts Global Petrochemical Index (PGPI), a benchmark basket of seven widely used petrochemicals, reached $1262/tonne in August, up from $1175/tonne in July, which was itself, 16% higher than June. Jim Foster, Platts senior editor of petrochemical analytics, cited stronger oil and naphtha prices as the impetus for the increase. "That trend was most obvious in the olefins markets," Foster said in a release, "with both ethylene and propylene seeing a climb in production costs due to higher naphtha prices."...