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Economics of the industry
Raw material cost is
the major cost for any petrochemical product. The margins of the
products keep on changing in cyclical fashion as they reach their
peak and bottom at the end of every 5-7 year cycle. Raw material
cost generally account for 50% of the selling price.
Last 5-year average
($/ton)
|
PE
|
PP
|
PVC
|
|
SP
|
800
|
725
|
650
|
|
RM
|
477
|
355
|
301
|
|
RM (% of
sales)
|
60%
|
49%
|
46%
|
|
Margin (% of
sales)
|
40%
|
51%
|
54%
|
Last 10-year average
($/ton)
|
PE
|
PP
|
PVC
|
|
SP
|
818
|
820
|
700
|
|
RM
|
488
|
376
|
325
|
|
RM (% of
sales)
|
60%
|
46%
|
46%
|
|
Margin (% of
sales)
|
40%
|
54%
|
54%
|
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Untitled Document
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