Crude oil and Polycarbonate

Crude oil is a raw material for polycarbonate; their prices have moved together.

Crude oil (energy) and Polycarbonate (chemical): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Crude oil → Polycarbonate

Polycarbonate is made from crude oil: it is one of the raw materials its production routes start from.

2. Price link: feedstock cost

Cost and price · Strong · Both ways

Oil sets the cost of the benzene and propylene behind BPA. Brent moves with the resin proxy at 0.24 monthly and 0.72 yearly. The monthly tie is loose because polycarbonate margins follow BPA supply, Chinese capacity and electronics demand more than oil.

• 0.24 monthly change correlation
• 0.72 12-month change correlation
• 0.18 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.