Petrochemical procurement soars

16 Nov 2010

Source:  Coal Geology
Petrochemical procurement prices are nearly a quarter higher than a year ago, according to Platts, a leading global energy and metals information provider.

Based on a basket of widely-used petrochemicals - used in a huge range of consumer goods - prices in October were up by 23.4 per cent compared to a year ago.??Platts said the increase - 5.65 per cent from September - was down to late third-quarter currency fluctuations, increased synthetic fabric production, and higher prices in the upstream energy complex.
One US petrochemical producer told Platts: "There hasn't been any more demand ... the gains in crude (during the first weeks of October) are because it's taking more dollars to buy a barrel. It's simple inflation."??

The rise comes despite predictions from the firm last month that the pace of demand would fall away to the extent that "spot markets might see a steep southward correction".??Petrochemical prices may add to inflationary conditions, which have been sparked recently with the news of high cotton and rubber prices.

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