This Insight will explain the integrated value chain process that Wood Mackenzie employs to generate price forecasts for NGLs and petrochemicals. In general, price forecasts for any commodity requires going through a relative value process. The price forecast is built up from the production cost plus a series of margins, cracks, spreads and relative values. Within each commodity, there may be relative values associated with grades and quality which can be thought of as horizontal relative value.
Table of contents
Key prices, margins and spreads in the PP value chain
Tables and charts
This report includes 4 images and tables including:
January 2014 to March 2015 average for each component to get to the $0.77 per lb PP average selling price
January 2014 – March 2015 average prices to get to $0.77 per lb PP
On a monthly basis, the 16 relative value components tend to move up and down and some are highly seasonal. The PP price traded in a range from $0.585 to $0.84 during this 15 month period.