Singapore’s exports of petrochemicals in September fell 8% year on year

ICIS-Singapore’s exports of petrochemicals in September fell 8% year on year, as product prices declined in tandem with international crude values and amid weakening demand, an analyst at credit ratings firm Standard & Poor’s said on Monday. Exports were valued at Singapore dollars (S$) 1bn ($794m), according to International Enterprise Singapore (IE Singapore).

Economic worries in the US and the eurozone depressed oil prices in September, forcing manufacturers in Singapore to lower product prices, said Andrew Wong, a Singapore-based petrochemical analyst at credit ratings firm Standard & Poor’s.

Brent crude futures fluctuated between a low of $108.07/bbl to a high of $113.26/bbl in September, while NYMEX WTI futures hit a low of $84.47/bbl and a high of $88.33/bbl during the month.

Among petrochemical products, benzene almost had an 11% decline in average spot prices in September from August, while ethylene saw a 6.2% fall in average values over the same period, according to ICIS.

In Asia, the petrochemicals demand and supply situation is roughly balanced, with a softening of demand in China – the region’s major importer of petrochemicals; Thailand in excess supply, and; Indonesia continuing as a net importer, Wong said.

Global energy majors Shell and ExxonMobil have petrochemical manufacturing sites in Singapore that serve the Asian market.