Argaam petrochemical index declines as polymers plummet

Argaam Petrochemical Index
213.1	Argaam Index ( December 21, 2014)
(4.7%)	Weekly change
(24.5%)	6 months change
(25.5%)	1 year change

Argaam Petrochemical Index, which measures the average change in prices for a basket of petrochemicals produced in the Gulf, dropped 10.3 points to 213.14 points by the end of last week compared to the previous week as the prices polymers and basic petrochemicals dropped to levels almost similar to that during the financial crisis amid amble supply and lack of demand.

Naftha feedstock declined $40 to $480 a ton last week.

The prices of Saudi natural gas liquids (NGL) such as propane and butane are set at 28% below the Japanese Naphtha benchmark, excluding freight costs.

Prices of Naphtha including shipping cost to Japan ( December 21, 2014)
1 year change	6 months change	Weekly change	Price	product
(51%)	(51%)	(6%)	480	NAFTHA *
(51%)	(51%)	(6%)	346	Propane **

* CFR Japan.

** Approximate price in Saudi Arabia (28% discount for NAFTHA).

Polymers declined sharply last week as buyers in India and China demanded that the final prices of the shipments were determined when delivered not when shipped because of the declining prices, traders said.

High Density Polyethylene (HDPE) dropped $70 to $1,200 a ton. Polypropylene lost $80 to $1,135 a ton. Polystyrene declined the most, plummeting $190 to $1,100 a ton. PVC fell $80 to $795 a ton.

Propylene declined $100 to $590 a ton, ethylene lost $60 to $890 a ton, benzene decreased $40 to $645 a ton, MTBE fell $55 to $650 a ton. Styrene bucked the trend gaining $40 after losing $210 a ton last week.

basic petrochemicals (December 21, 2014 ) - Asian markets
1 year change	6 months change	Weekly change	Price	product
(36%)	(36%)	(6%)	890	Ethylene*
(58%)	(57%)	(14%)	590	Propylene*
(52%)	(53%)	(6%)	645	Benzene*
(48%)	(44%)	+5%	870	Styrene*
(30%)	(3%)	--	415	Methanol (Methanex)**
(50%)	(18%)	(10%)	270	Methanol (China)***
(41%)	(41%)	(8%)	650	MTBE****

* FOB-East Asia (Japan, Taiwan and Korea).

** ACP "Methanex"

*** Methanol prices in China.

**** Spot – Singapore.

Polymers prices ( December 21 2014 ) - Asian markets
1 year change	6 months change	Weekly change	Price	product
(21%)	(24%)	(5%)	1220	Polyethylene*
(27%)	(26%)	(7%)	1135	Polypropylene
(39%)	(35%)	(15%)	1100	Poly Styrene
(22%)	(24%)	(9%)	765	PVC
+3%	+4%	--	2575	PCB

* High density polyethylene.

Intermediates ( December 21, 2014 ) - Asian markets
1 year change	6 months change		Weekly change			Price	product
(25%)		(23%)		+1%	770		Spot MEG - china
(21%)		(16%)		(5%)	950		MEG (SABIC)
(37%)		(34%)		(9%)	625		PTA

Fertilizers (December 21, 2014 ) - Gulf Arab
1 year change	6 months change	Weekly change	Price	product
(9%)	+3%	--	320	Urea
+26%	+20%	(7%)	560	Ammonia
+20%	+7%	--	480	DAP*

* Export price from Saudi Arabia

Titanium Dioxide ( December 21, 2014)
1 year change	6 months change	Weekly change	Price	product
(4%)	(2%)	--	2750	Tio2 (Asia)
(12%)	(10%)	--	2860	Tio2 (Europe)
--	--	--	3465	Tio2 (America)

About Argaam Petrochemical Index:

It is the only index that provides a weekly capacity-weighted measure of the average change in international prices of a basket of petrochemicals produced in the Gulf region.

Internally -consumed products which are used as a feedstock for producing other petrochemicals and are not sold regularly in the international market like ethylene, propylene and ammonia represent smaller weight in the index.

Final products sold in international markets such as Polyethylene, polypropylene, MTBE, MEG and urea represent the biggest index weights.

Naphtha prices, the main feedstock benchmark, correlate negatively with the index. The index products’ weights are reviewed periodically.

As of Jan 1, 2002 the index started at 100 points.

End products for the Saudi petrochemical companies
Finished products	Company
Polyethylene , polypropylene , poly styrene , ethylene glycol (MEG), methyl tert- butyl ether (MTBE), benzene , urea , ammonia , PVC, and PTA	SABIC
Urea, ammonia.	SAFCO
Polyethylene, polypropylene, ethylene glycol (MEG), methyl tert- butyl ether (MTBE), benzene.	YANSAB
Polyethylene, polypropylene, propylene. (TiO2)	Tasnee
Polyethylene, polypropylene, ethylene glycol (MEG), polycarbonate, and bisphenol A.	Saudi Kayan
Polyethylene, polypropylene, propylene oxide, and refined petroleum products.	Petro Rabigh
Polyethylene, polypropylene, poly styrene.	Petrochem
Polyethylene, polypropylene.	Sahara Petrochemicals
Styrene, benzene, Cyclohexene, propylene.	Saudi Group
Methanol, Butanol, acetic acid, vinyl acetate monomer.	Sipchem
PP.	Advanced
Polypropylene.	Alujain
Formaldehyde - improvers concrete	CHEMANOL
Epoxy resin, hydrochloric acid, liquid caustic soda, soda granules.	NAMA
Ammonia and DAP	MAADEN

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