Rising raw material costs drive up the price of petrochemical products

Recently, supply uncertainty has pushed up gas prices in Europe and has a knock-on effect on Asia. In addition, due to the impact of Hurricane Ida, the U.S. Gulf of Mexico oil production platform was closed, which also pushed up gas prices.

　　 With the price of Brent crude oil surging up to US$80/barrel, upward pressure on petrochemical product prices has also increased. Rising crude oil futures prices strongly pushed up Asian naphtha prices. On September 27, Asian naphtha prices reached a three-year high. What American olefin producers need to deal with is the higher prices of ethane and other natural gas condensate (NGL). Although they maintain a significant production cost advantage compared with oil-based companies, their profits have been squeezed.

　　 As the price of naphtha has risen, the price of ethylene in Asia has also been rising.

　　 Due to the rising cost of raw materials and the strengthening of the U.S. economy, the prices of petrochemical products and polymers in the U.S. Gulf of Mexico have risen sharply. The rising cost of raw materials provides the impetus for the possible further increase in the price of petrochemical products and polymers.