Energy costs bump up index

By Staff -- Purchasing, 2/8/2001

PURCHASING's INDEX OF CHEMICAL PRICES JUMPED more than six index points this month to 121.13. High energy costs are to blame for the increasing prices, while demand for most chemicals is moderate and overall supply is leaning toward long, according to buyers.

Chemical indexes showing particular strength this month include solvents, which jumped more than 20 points to 120.32. While the solvents market is mature and has been for years, pricing for these chemicals has risen significantly because of their dependence on trends in crude oil and natural gas costs. The major gains were led by methanol, phenol, toluene and mixed xylenes.

Other indexes show moderate gains. They include the pulp and paper chemicals index (up nearly seven points), and the aliphatics index, which is up more than five points to 111.42 in January.