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4th March 2011

ABS (Asia Pacific)
Editor Clive Ong, clive.ong@icis.com SPOT PRICES - GENERAL PURPOSE INJECTION GRADE - CFR Click for Price Price Range Four weeks US CTS/LB History ago N.E.ASIA USD/MT n/c 2350-2380 n/c 2270-2300 106.59107.95 S.E.ASIA USD/MT n/c 2350-2390 n/c 2260-2300 106.59108.41 INDIA MAIN PORT USD/MT n/c 2360-2400 n/c 2260-2300 107.05108.86
NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Market summary Asian acrylonitrile-butadiene-styrene (ABS) resin prices were largely unchanged this week, despite firm energy futures and strong feedstock costs. Key raw material styrene monomer (SM) numbers slipped below $1,450/tonne CFR China. However, acrylonitrile (ACN) and butadiene (BD) prices were firm at around $2,500/tonne CFR NE Asia and $2,650/tonne CFR NE Asia respectively. ABS suppliers were keen to raise prices as margins were narrowing. However, most sellers kept offers unchanged as demand in the key Chinese market did not show any significant improvement. Sellers expected buying momentum to pick up in the second quarter when factories producing finished goods for exports increase production rates. End-users and traders still have some inventories on hand but sellers believed that they could step out to replenish some stocks in late March. ABS operating rates were estimated around 85%, unchanged from last week. Domestic China prices were at yuan (CNY) 18,500-19,000/tonne DEL, up by CNY 100-150/tonne from last week. Spot Offers of March parcels were cited at $2,360-2,400/tonne CFR China and Hong Kong, largely unchanged from last week. Sporadic trades remained in the mid-to-high $2,300s/tonne CFR China and Hong Kong. Some offers from traders were heard to be above $2,400/tonne CFR China and Hong Kong, but fixtures were few. In southeast Asia, offers were heard in a similar range of $2,350-2,400/tonne CFR. Buying interest was weak with buying indications below $2,350/tonne CFR SE Asia, traders said. In India, offers of Asian parcels were quoted above $2,400/tonne CFR. However, buying ideas hovered around $2,350/tonne CFR India. Sellers were not keen to meet these low buying indications, given the higher freight rates to India compared to other Asian destination. Production data:

Tianjin Dagu Petrochemical plans to shut its Styrene unit in H1 March for a month long turnaround. However, its 200,000 tonne/year ABS unit will continue to run, albeit at a lower rate. FCFC Ningbo reduced the operating rates of its 300,000 tonne/year ABS unit in eastern China to 60% from 80% previously in late February on feedstock CAN shortage. ($1=CNY6.57) This week 04 Mar 11 04 Mar 11 03 Mar 11 03 Mar 11 03 Mar 11 in ICIS news ( www.icisnews.com): 04:22 China’s Yantai Wanhua to start up new complex in 2014 02:44 Japan’s Sumitomo Chemical to restart Jurong MMA line on 1 April 10:41 Azerbaijan's AzMeCo to build new methanol plant by end of 2011 10:19 Petronas Q3 operating profit surges to $1.19bn on higher sales 09:27 Japan's Kuraray to shut PMMA plant for turnaround in Q2

FEEDSTOCK PRICES Click for Price History BUTADIENE STYRENE Price Range CFR N.E.ASIA CFR N.E.ASIA FEB USD/MT USD/MT +50 +53 2500-2550 1423-1457 +50 +57

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

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4th March 2011

Acrylonitrile
(Asia Pacific)
Editor Helen Yan, helen.yan@icis.com SPOT PRICES Price Range USD/MT USD/MT +70 +20 2650-2700 2650-2700 +80 +20 Click for Price History CFR N.E.ASIA CFR INDIA Four weeks ago 2400-2450 2450-2500 US CTS/LB 120.20122.47 120.20122.47

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Market summary Acrylonitrile (ACN) spot prices rose further to $2,650-2,700/tonne CFR NE Asia this week, reflecting buy-sell indications for March shipments. Tighter-than-expected supply with the unplanned outages at a 260,000 tonne/year ACN plant in Shanghai, China as well as the delayed restart of a 545,000 tonne/year plant in Texas in the US spurred some sellers to target $2,700-2,750/tonne CFR NE Asia for March cargoes. Buying indications were largely pegged below $2,700/tonne CFR Asia although there was talk that some trades had been completed at around this level in India and China. Soaring cotton prices had bolstered the downstream acrylic fibre (AF) prices, with some AF producers heard seeking to hike AF prices to $3.30-3.40/kg CFR Asia. Cotton and AF are substitutes for each other and their prices tend to impact and move in tandem with each other. Northeast Asia Spot offers for March shipments were hiked to $2,700-2,750/tonne CFR NE Asia on the back of strong demand from the derivative AF and acrylonitrile-butadiene-styrene (ABS) sectors. There was talk that a deal to a downstream ABS maker in China was concluded at above $2,700/tonne CFR NE Asia but confirmation was not forthcoming by the close of business. Discussions were also heard at $2,650-2,700/tonne CFR NE Asia for March shipments. Chinese domestic ACN prices had increased to yuan (CNY) 20,800-21,100/tonne ex-tank, up CNY300-500/tonne from the previous week. The derivative AF 3D Tow prices were at CNY 24,80025,500/tonne. India

Spot offers for March shipments were pegged at $2,700-2,750/tonne CFR India against buying indications below $2,700/tonne CFR India. A trade deal was heard concluded at $2,700-2,720/tonne CFR India for March shipment but could not be verified by the close of business. Deep-sea supply from the US Gulf was expected to ease in March with the anticipated start up of a major ACN plant in Texas. Furthermore, lower feedstock propylene costs in the US were expected to cap any further price hikes for US origin product. March chemical grade propylene (CGP) contracts in the US were initially settled lower by 3 cents/lb to 71 cents/lb. Contract Major Japanese ACN producer Asahi Kasei has nominated its March 2011 Far East Contract Price (FECP) at $2,500/tonne CFR Asia, up by $100/tonne from February. In the US, the February feedstock chemical-grade propylene contract has settled flat at 70-74 cents/lb. In Europe, the February ACN contracts settled up 50-65/tonne to 2,135-2,143/tonne free delivered. The feedstock February propylene contracts were settled at 1,105/tonne FD NWE, up by 35/tonne from December. Production China’s Shanghai SECCO Petrochemical has shut down one of its 130,000 tonne/year acrylonitrile (ACN) lines in Shanghai because of a technical problem, a source close to the company said on Friday. The ACN line was shut on 3 March and will stay shut for five days, the source said. China-based Jilin Petrochemical's 120,000 tonne/year No 4 acrylonitrile (ACN) line has remained shut since September 2010 because of technical problems, a source close to the company said on Friday. The line may not restart in the near term, the source said. Jilin Petrochemical's three other ACN lines at the site, with a combined capacity of 332,000 tonne/year, are currently running at near full capacity, according to the source. China's Fushun Petrochemical has reduced the operating rate at its 92,000 tonne/year ACN plant to 70% or below following an explosion at its 1.5m tonne/year FCC on 19 January. Korean producer Taekwang shut down its 250,000 tonne/year ACN unit on 14 February for a three-week turnaround. It will restart on 5 March. ($1 = CNY6.57) This week on ICIS news ( www.icis.com): 04 Mar 11 08:14 China’s Huizhou MMA restarts MMA unit after power failure 04 Mar 11 08:06 China’s Zhejiang Yuandong Chemical Fibre shuts No 1 plant 04 Mar 11 08:03 China's Shanghai SECCO shuts ACN line on technical issue 04 Mar 11 07:22 Lucite’s Singapore MMA unit back at 100% after feedstock shortage 04 Mar 11 06:30 South Korea’s YNCC March butadiene contract up $247/tonne

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4th March 2011

Butadiene
(Asia Pacific)
Editor Helen Yan, helen.yan@icis.com SPOT PRICES Price Range USD/TONNE +50 USD/TONNE +50 USD/TONNE +50 2500-2550 2500-2550 2520-2570 +50 +50 +50 Click for Price History CFR N.E.ASIA CFR TAIWAN CFR S.E.ASIA Four weeks ago 2150-2200 2120-2180 2170-2220 US CTS/LB 113.40115.67 113.40115.67 114.30116.57

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Market summary Trade in butadiene (BD) was thin this week as buyers adopted a wait-and-see stance. Uncertainty over the turmoil in the Middle East amid soaring crude and naphtha prices weighed on sentiment. Falling natural rubber prices further dampened buying sentiment. Natural rubber prices had plunged more than $500/tonne since mid-February. Natural rubber and synthetic rubber are substitutes for each other and their prices tend to impact and move in tandem with each other. The major downstream synthetic rubber producers adopted a cautious stance to wait for a clearer picture. Buying interest was also muted as most major end-users had covered requirements until mid-April. About 20,000 tonnes of deep-sea cargoes from Europe and the US were scheduled to arrive in March and April. Northeast Asia Butadiene spot prices were assessed $50/tonne higher at $2,500-2,550/tonne CFR NE Asia to reflect the current discussions and buy-sell indications for April shipments. Spot offers for early April loading at $2,550/tonne CFR NE Asia evoked little interest, with buying indications about $50/tonne lower. Chinese spot appetite was limited, with most major end-users having secured material to cover requirements until mid-April. Shore tanks were also full and the Chinese buyers had no pressing need to procure any additional spot product. Chinese domestic BD prices rose by yuan (CNY) 1,000/tonne to CNY 19,500/tonne this week, equivalent to around $2,500/tonne CFR NE Asia.

The Korean buyers had also earlier procured sufficient material to cover March and early April requirements. Several thousand tones of product from Europe and the US were destined to arrive in South Korea in March and April. Southeast Asia There were no fresh spot trades this week, with the end-users having secured sufficient product to cover March and early April requirements on a contractual basis. Selling indications rose to at $2,650-2,700/tonne CFR SE Asia following trade done above $2,500/tonne CFR SE Asia. Spot appetite was limited and offers and bids were scant in a relatively quiet market. Contract South Korea’s Yeochun NCC Co (YNCC) has settled its March BD contract at $2,376/tonne, up $247/tonne from February’s contract price. The company settled its February BD contract at $2,129/tonne on a pipeline delivered (DEL) basis. The March European butadiene (BD) contract price has settled at 1,555/tonne ($2,150/tonne), up 115/tonne from February. US BD producers proposed increases ranging from 5 cents/lb ($110/tonne, 80/tonne) to 7 cents/lb, initiatives that will put BD in March at $1.04/lb. US February BD contracts were settled at 99 cents/lb. Production: China’ Tianjin Lugang Petroleum and Rubber is expected to start production at its new 100,000 tonne/year styrene butadiene rubber (SBR) plant on 20 March, industry sources said. The new SBR plant was originally scheduled to start up at the end of last year, sources said. South Korea’s Kumho Petrochemical Co (KKPC) has started commercial production at its new 120,000 tonne/year butadiene rubber (BR) plant at Yeosu after undergoing a successful test trial in February. China's Fuxiang Chemical will delay the start-up of its new 100,000 tonne/year SBR plant to April. It was originally scheduled to start up in March. South Korea's YNCC has scheduled the maintenance shutdown at its 857,000 tonne/year No 1 cracker from 5 April to 4 May, a company source said. The No 1 cracker is located in Yeochun, South Korea, and has a BD extraction unit with a capacity of 240,000 tonnes/year. ($1=CNY6.57) This week on ICIS news ( www.icis.com): 04 Mar 11 08:03 China's Shanghai SECCO shuts ACN line on technical issue 04 Mar 11 07:24 Japan's Mitsubishi Chemical to close Kashima SM plant in March 04 Mar 11 07:18 Asia PET at 16-year high on rising feedstock prices - sources 04 Mar 11 06:30 South Korea’s YNCC March butadiene contract up $247/tonne 03 Mar 11 09:47 Asia naphtha trade settles at $1,005-1,007/tonne

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

Copyright ? 2010 Reed Business Information Limited. ICIS Pricing is a member of the Reed Elsevier plc group.

4th March 2011

Butadiene / C4s
(Europe)
Editor: Nel Weddle, nel.weddle@icis.com CONTRACT PRICES Price Range EUR/TONNE +115 1555-1555 +115 Click for Price History FD NWE MAR Four weeks ago 1440.001440.00 US CTS/LB 98.6898.68

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

The March European butadiene (BD) contract price settled at 1,555/tonne, up 115/tonne from February, as a result of strong demand and upstream volatility. A major butadiene producer reported the initial settlement late on 28 February. To date, two producers and three consumers have directly confirmed the settlement of 1,555/tonne. Sources had been anticipating a fairly sizeable price hike for March and the discussions had centred on a 1,480-1,600/tonne FD NWE range, according to some players. The 8% month-on-month increase to the record high contract price reflected the ongoing strength of demand in Europe and globally. High prices and strong demand in the US and Asian markets had continued to draw European volumes away from the local market through February and this was expected to continue in March. Additionally, european supply was likely to be constrained, sources said, because of planned maintenance at a BD extraction unit in the Netherlands and scheduled turnarounds at a number of crackers. Sources added that the increasing tendency to crack light feeds would also limit the production of the BD feedstock crude C4. Speaking at the 6th ICIS World Olefins conference this week, INEOS made reference to the possibility of BD extraction rates being under-utilised because of the weakness of Raffinate 1 versus its feedstock and co-product Butadiene. However, while other C4 sources recognised that Raffinate 1 was under pressure because of oversupply as well as weakness in the gasoline pool - its main outlet - few thought that BD producers would forego the very attractive margins currently being seen for BD itself. However, there could be some relief on the horizon, according to Christof Krogmann, Vice President Petrochemical Projects of major BD consumer LANXESS. He said that high BD prices could potentially lead to the lower-margin producers in certain sectors exiting the market, thereby freeing up BD.

He added that the alternative manufacturing routes to the C4 molecules, such as selective dehydrogenation, were becoming increasingly attractive because of the bullishness of the market. This was a prospect deemed unfeasible just a year ago. Upstream In the crude oil markets, the ongoing conflict in Libya and subsequent disruption to oil exports, plus the possibility of further civil unrest in other Middle East oil producing nations, kept prices at the highest levels since August 2008. On Friday afternoon, April Brent was trading around $115.95/bbl, up from the previous week’s close of $112.14/bbl. April WTI was trading around $103.65/bbl, up from $97.88/bbl. This week the European naphtha cargo market traded within a range of $951-1011/tonne CIF NWE. Prices climbed for most of the week, before finishing at $1001-1009/tonne CIF NWE on Friday afternoon. There was little activity, but the spot market had tightened further from the previous week. The arbitrage to Asia remained closed, but for certain grades of naphtha an arbitrage was open to the US. Demand from the petrochemical sector was again muted, but from the gasoline industry it was steady. Downstream Hikes of at least 80/tonne for March contracts were targeted by European acrylonitrile butadiene styrene (ABS) producers on the back of strong demand and firming feedstock costs. Sellers were justifying the hikes not just on the back of styrene, but also the 115/tonne increase in March butadiene and anticipated 100/tonne uptick in acrylonitrile (ACN). Negotiations were ongoing. European styrene butadiene rubber (SBR) March contract prices settled at increases of 200300/tonne, because of strong demand, tight supply and rising upstream costs. Some players said that market availability was the lowest it had ever been. Cracker update European cracker margins based on naphtha feedstock fell by a massive 30% in the week ending 25 February because of strong upstream gains driven by the continuing unrest in the Middle East. Contract margins dropped by 135/tonne ($185/tonne) to 317/tonne on the back of a $74/tonne increase in naphtha, according to ICIS data. Contract liquefied petroleum gas (LPG) margins were on par with those of naphtha, despite being affected by a $68/tonne rise in LPG prices. As a result, Some cracker operators with the flexibility to do so have already been benefiting from the improvement in LPG margins. One producer said this week that it had already swung “full force” into LPG cracking and was almost at the limit of its capability. Other operators were widely expected to have done the same despite the obvious impact on the already snug propylene and BD markets. Following the contract settlements on Monday, naphtha prices strengthened and put naphtha cracker margins under further pressure. Most crackers were running at technical maximum where possible, continuing to be stimulated by the very healthy co-product markets. The NOC cracker based at Ras Lanuf, Libya, was believed to have been shut down around the weekend of 19-20 February, in response to the heightening tensions in the country. There was no indication when operations might be back to normal. Sources were of the opinion that the shutdown process had been ordered, however, rather than being an emergency stop. The FAO - ExxonMobil, Total Petrochemicals joint venture NC3 cracker at Antwerp in Belgium, was still offline. It had shut down a couple of weeks ago because of some technical problems, according to sources. Some players anticipated a restart by 1 March, but there was also talk which

suggested a mid-March re-start. No details were confirmed. The cracker has the capacity to produce 600,000 tonnes/year of ethylene, according to ICIS data. The status of another of FAO’s Antwerp crackers, NC2, was unclear this week, but sources said that it was still offline. There were reports late last week that it had gone down on a technical issue. Talk of a propylene force majeure (FM) was not confirmed and no further details were available by the time of going to press. This cracker, which can produce 560,000 tonnes/year of ethylene, had been down for an extended period in Q4 of last year. Planned maintenance was imminent at DOW’s No 1 cracker in Terneuzen, the Netherlands and at SABIC’s Olefins 3 cracker based at Geleen, also in the Netherlands. The crackers both have the capacity to produce 590,000 tonnes/year of ethylene according to ICIS data. Butadiene extraction There were restrictions in place at some extraction units because of limited crude C4 feedstock availabilities due to recent unplanned cracker outages and a switch to light feed cracking in some areas. Preparations were in place for the upcoming 11-12 March planned shutdown of Dow’s 180,000 tonne/year butadiene extraction unit at Terneuzen in the Netherlands.

Click for Price History FOB ARA FD NWE INLAND

SPOT PRICES Price Range USD/TONNE +150 EUR/TONNE n/c 2200-2300 1540-1630 +140 n/c

Four weeks ago 2100-2200 1540.001600.00

US CTS/LB 99.79104.33 97.73103.44

Talk on the butadiene spot market this week, suggested that the logistical difficulties which had caused US demand to wane, were now over. Two large vessels which had been booked ex-Europe around the same time, the Nordic Gas and Maersk Harmony, had discharged now, according to a trader. Major US BD consumer Invista was reported to have resumed full production following some reductions because of cold weather early in February. This was not confirmed, but sources said that if true, and alongside reports of a BD allocation at ExxonMobil’s since 1 March, spot prices could start rising once again. Some sources pegged export prices around 1,650/tonne or close on $2,300/tonne FOB ARA this week, but no deal specifics were heard this week. Asian butadiene prices were up a further $50/tonne this week at $2,520-2,570/tonne CFR SE Asia, but buying activity was thin because of uncertainties over developments in the upstream market and amidst falling natural rubber prices, the substitute for synthetic rubber. About 20,000 tonnes of BD was expected to arrive in Asia in March and April, some 8,000 tonnes from Europe and the remaining 12,000 tonnes from the US. There was no fresh news from the domestic inland spot sector this week.

Click for Price History

CRUDE C4 - SPOT PRICES Price Range

Four weeks ago

US CTS/LB

FOB NWE

USD/TONNE +97.23

1236.301314.30

+79.77

1074.781103.76

56.0859.62

Sources expected a tightening crude C4 market because of planned and unplanned problems at the cracker level and also some cracker operators’ switch to a lighter feed slate. Spot demand for export was still healthy and numbers were being discussed at 1.30 times naphtha this week. The published range has been adjusted at 1.30 times naphtha this week in line with the majority of market commentary. ($1 = 0.72) This week 04/03/11 02/03/11 02/03/11 28/02/11 28/02/11 on ICIS ( www.icis.com) 13:13Europe naphtha spikes above $1,000/t on firm crude, crack spread 19:50 US BD market to remain tight on rising ethane usage - Dow 17:35 Raffinates could be extra factor limiting Europe BD supply - INEOS 17:33 Initial Europe March butadiene agreed up by 115/tonne 15:33 Europe naphtha cracker margins drop 30% on upstream volatility

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

Copyright ? 2010 Reed Business Information Limited. ICIS Pricing is a member of the Reed Elsevier plc group.

4th March 2011
Butadiene / C4’S
(US Gulf)
Editor William Lemos, william.lemos@icis.com CONTRACT PRICES Price Range US CTS/LB +5.00 104.00104.00 SPOT PRICES Price Range US CTS/LB n/c 100.00110.00 n/c +5.00 Click for Price History FOB USG MAR One year ago 76.00-76.00 USD/MT 2293-2293

Click for Price History CIF

Four weeks USD/MT ago 110.00-115.00 2205-2425

Click for Price History FOB NWE CIF USG FOB USG FORMULA

CRUDE C4 SPOT PRICE Price Range USD/TONNE +97.23 USD/TONNE +97.00 UDS/TONNE +67.00 1236.301314.30 1511.001589.00 1430.001450.00

Four weeks ago +79.77 1074.781103.76 +79.00 1349.001378.00 +67.00 1291.001311.00

US CTS/LB 56.0859.62 68.5472.08 64.8665.77

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Tightening supply, increasing demand and rising prices in Asia continued to drive the US butadiene (BD) market following the recent March settlement at $1.04/lb. The March settlement was the first non-split BD settlement since November 2010. There have been four split BD settlements since last September, prompting some talk in the BD sector of a possible change in settlement dynamics. Prior to 2010, there were only two split BD settlements going back to 1994. Because cargoes imported to the US from other regions had backed up in Gulf Coast ports, the tight supply was temporarily alleviated, a source said. However, a significant amount of the imported cargoes were then exported to Asia, which caused the US market to tighten again, the source added.

BD spot prices in Northeast Asia and Southeast Asia climbed $50/tonne to $2,500-2,550/tonne CFR N.E. Asia and $2,520-2,570/tonne CFR S.E. Asia, respectively. The Taiwan BD spot market also climbed $50/tonne to $2,500-2,550/tonne. Downstream, BD demand from the styrene butadiene rubber (SBR) sector was on the rise following a 27% increase in the sale of new vehicles in February. Original equipment manufacturer tyres for new vehicles make up a key demand driver for SBR. Strong SBR demand in Asia not only provided US exporters with arbitrage opportunities, but also kept a support floor under Asia prices, which were up $100/tonne in China for 1502 non-oil grade and 1712 oil extended grade material. In Southeast Asia, a $200/tonne increase in 1502 grade SBR pushed prices up to $4,0004,100/tonne. The Asia SBR price strength contributed to a 2-cent/lb rise in spot values in the US, sending domestic 1502 non-oil grade SBR to 130.00-139.00 cents/lb, and 1712 grade SBR to 120.00129.00 cents/lb. Crude C4 CIF US Gulf (USG) prices were lifted on tight supply following unplanned outages and planned cracker maintenance. However, a move to lighter feeds by some cracker operators was also said to have boosted C4 prices. C4 factor values were adjusted to 1.30 times naphtha. Freight costs for C4 from NWE to the US Gulf were assessed at $275/tonne for 4,000-5,000 tonne cargoes. USG formula prices climbed on the increase in BD contract prices, as well as higher gasoline values.

Production news In Louisiana, a Dow Chemical unit in Plaquemine remained shut after being taken down on 16 February for repairs. It was not known when Dow will restart the unit. The unit, one of two Dow crackers in Plaquemine, has an approximate annual capacity of 500,000 tonnes.

Indicative Feedstock Butane Prices – Mont Belvieu, TX US$/gal Mar 04 Feb 25 Butane 1.76 1.83 USG Gasoline 2.88 2.76 NYMEX Closing Mar 04 Feb 25 Crude Oil 104.42 97.88 Natural Gas 3.81 4.00

Feb 18 1.78 2.50 Feb 18 86.20 3.87

Feb 11 1.70 2.40 Feb 11 85.58 3.91

Covering editor: Gene Lockard ($1 = 0.72) This week on ICIS news ( www.icis.com ): 02/03/2011 23:59 Europe March SBR contracts up 200-300/tonne on supply, demand 02/03/2011 19:50 US BD market to remain tight on rising ethane usage – Dow 02/03/2011 16:02 Initial Europe March styrene barge settles up at 1,359/tonne 02/03/2011 03:22 Indonesia’s Styrindo Mono on track to shut down No 2 styrene unit 02/03/2011 22:30 US Feb auto sales jump 27.3% year on year, may raise chem. demand

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

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4th March 2011

Ethylene (Asia
Pacific)
Editor Soo Hwee Peh, soohwee.peh@icis.com SPOT PRICES Price Range USD/MT USD/MT USD/MT USD/MT n/c -10 -50 -20 1300-1320 1320-1350 1300-1350 1280-1320 n/c -30 -30 n/c Click for Price History FOB KOREA CFR N.E.ASIA CFR S.E.ASIA FOB S.E. ASIA Four weeks ago 1220-1240 1260-1290 1150-1190 1150-1190 US CTS/LB 58.97-59.87 59.87-61.23 58.97-61.23 58.06-59.87

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Deals/discussions for the week ending 4 Mar $1,300/tonne CFR Indonesia, 3,000-3,500 tonnes of unspecified origin, end-Mar/early Apr arrival 1 cargo of Japanese origin sold on formula, H2 Mar loading Tender from Iran, H1 Mar loading bound for Europe, formula Sell ideas below $1,350/tonne up to $1,400/tonne CFR NE Asia Buy ideas below $1,300/tonne to above $1,350/tonne CFR NE Asia Sell ideas $1,350/tonne FOB NE Asia or more, end-Mar/Apr loading Buy ideas $1,300/tonne FOB NE Asia, early week Sell ideas $1,320/tonne FOB SE Asia, Mar loading Buy ideas below $1,300/tonne FOB SE Asia Market Summary The Asian ethylene spot market pulled back this week following recent gains amid limited sales outlets in the region due to ongoing and upcoming turnarounds/production issues at derivative plants. Spot appetite from the leading Chinese market was noticeably thin, making it difficult for sellers to maintain selling ideas close to $1,400/tonne CFR NE Asia by Friday despite feedstock naphtha values breaching the $1,000/tonne level late week and ongoing turnarounds in the region. In addition, the recent outage at Korean producer Yeochun NCC's (YNCC) largest cracker (see production news) kept sentiment bullish early in the week although there was talk that production rates had improved above 50% by Friday. This could not be immediately confirmed.

On the Middle East front, the delivery of term cargoes from Qatar were heard to have resumed this month as the 1.3m tonne/year Ras Laffan Olefins cracker was ramping up production after earlier technical issues although some market sources said supplies remained limited. Separately, a tender issued from Iran was awarded on a formula basis during the week with the first-half March loading shipment bound for Europe due to a better netback compared with sales to Asia, market sources said. Further details were not available. Northeast Asia Spot prices were assessed down $10-30/tonne at $1,320-1,350/tonne CFR NE Asia to reflect lower discussions in the market. Selling ideas kicked off the week at a high of $1,400/tonne CFR NE Asia but dropped to around $1,350/tonne CFR NE Asia or below on Friday due to limited spot appetite. Buying interest notably in the key China market remained muted due to ongoing and upcoming turnarounds at derivative plants ranging from styrene to ethylene oxide and vinyls in March-May. Some Chinese end-users said they had to defer term imports amid production issues at their own facilities and had no need to buy spot ethylene. Sporadic buying ideas were mentioned in a wide range of below $1,300/tonne CFR NE Asia up to above $1,350/tonne CFR NE Asia through the week although the bulk of the pricing indications were below the mid $1,300/tonne level. Separately, a domestic 3,500-tonne cargo loading first half March was heard sold to an end-user in China at the equivalent of around $1,280/tonne DEL. The prompt delivery of the cargo meant that the fixture could not be considered for assessment purposes. In the FOB NE Asia market, a regional cargo from Japan loading second-half March was heard sold on formula to a trader. Selling ideas were mentioned at $1,350/tonne FOB NE Asia or more for end-March/April loading parcels amid the recent spike in feedstock naphtha costs but negotiations were likely to kick off from next week. Buying ideas from some traders were capped around $1,300/tonne FOB NE Asia early in the week. Separately, cargoes totalling around 10,000 tonnes loading second-half March were sold in late February at around $1,300/tonne FOB NE Asia, and the bulk of the parcels were expected to head to Europe in the aftermath of the crisis in Libya, market sources said. Southeast Asia Spot prices fell $30-50/tonne to $1,300-1,350/tonne CFR SE Asia, reflecting a confirmed deal at the low end of the range. A 3,000-3,500 tonne spot cargo of unspecified origin was sold at $1,300/tonne CFR Indonesia for end-March/early April arrival. Other negotiations were heard during the week with discussions at or above the $1,350/tonne CFR SE Asia level but no other deals were reported. On the FOB SE Asia front, talks to sell a spot cargo loading mid-March hit a snag amid differences over the price and laycan. Selling ideas were pegged at $1,320/tonne FOB SE Asia while buying ideas were heard below $1,300/tonne FOB SE Asia. Separately, there was talk that a cracker in Malaysia was slated to be shut for maintenance from end-March to mid-April but this was not immediately confirmed. Contract pricing in Taiwan The February ethylene contract price could be settled close to $1,300/tonne, market sources said, although the producer was not immediately available for comment. January $1,238/tonne. December $1,094/tonne. November $1,094/tonne. October $1,107/tonne. September $1,022/tonne. Aug $945/tonne. July $920/tonne. June $983/tonne. May $1,171/tonne. April $1,162/tonne. March $1,105/tonne. February $1,168/tonne. January $1,177/tonne.

Freight rates Intra southeast Asia spot freight rates were heard at $60-80/tonne. Intra northeast Asia spot freight rates were pegged at $70-80/tonne. Southeast Asia to northeast Asia spot freight rates were heard at around $120-150/tonne. Production News YNCC restarted its 857,000 tonne/year No 1 cracker on 27 February but the facility was running at a low rate of 40%, said a company source. Full production was expected to resume earliest by 1314 March as six of the 12 furnaces were not running smoothly, he added. Korea Petrochemical Industry Co (KPIC) is running its 470,000 tonne/year naphtha cracker at 100% following a brief outage on 27 February caused by a problem with the compressor valve, said a company official. Rabigh Refining and Petrochemical (PetroRabigh) plans to shut its 1.3m tonne/year ethane cracker in Saudi Arabia for 40-45 days of scheduled maintenance in late April, said sources close to the company. South Korea’s Samsung Total Petrochemicals plans to debottleneck its naphtha cracker in Daesan during a turnaround from end-April to early June, said sources close to the company. After the expansion, the nameplate ethylene capacity would be increased to over 900,000 tonnes/year from the existing 850,000 tonnes/year, they added. Thai refinery and cracker operator IRPC plans to shut its 350,000 tonne/year naphtha cracker in Rayong for a turnaround in November this year, said a company source on Monday. Mitsubishi Chemical will shut its 500,000 tonne/year cracker in Mizushima for maintenance from 16 May to 29 June. In Kashima, a 375,000 tonne/year No 1 cracker will also have a turnaround from 19 May to 27 June. Another 453,000 tonne/year No 2 cracker in Kashima would also have a turnaround from 30 June to 17 August, the source added. Malaysia's Titan Chemicals plans to shut the smaller of its two naphtha crackers for scheduled maintenance in June, said a company source. The turnaround at the 285,000 tonne/year in Pasir Gudang was expected to last around one month but the source did not provide specific dates. China’s Dushanzi Petrochemical is planning to shut its two naphtha crackers, which have ethylene capacities of 1m tonnes/year and 220,000 tonnes/year respectively, in the northwestern Xinjiang region for a turnaround from August to September, a source from the PetroChina subsidiary said. The shutdown is scheduled to last slightly more than a month, according to the source. Discussions for the week ending 25 February Selling ideas high $1,300s/tonne CFR NE Asia, Mar arrival Selling target $1,400/tonne CFR NE Asia, Mar arrival $1,350/tonne FOB SE Asia, two 3,000-4,000 tonne cargoes, mid-Mar loading, unconfirmed Buying idea $1,330-1,340/tonne CFR China, H2 Mar arrival $1,400/tonne CFR SE Asia, Mar arrival, details sketchy $1,380-1,390/tonne CFR SE Asia, 5,000 tonnes H1 Mar arrival $1,340/tonne FOB SE Asia, 3,500 tonnes early Mar arrival, unconfirmed Selling ideas $1,400/tonne FOB Korea Selling notions $1,500/tonne CFR NE Asia Buying idea $1,380-1,390/tonne CFR China $1,320-1,330/tonne CFR NE Asia, mid-H2 March arrival, unconfirmed Selling notion $1,330/tonne CFR NE Asia, any March arrival $1,300/tonne CFR Taiwan, details sketchy Selling idea $1,320/tonne FOB SE Asia, H2 March loading Buying idea $1,350/tonne CFR SE Asia, 3,000 tonne H1 April arrival This week in ICIS news: 03/03/2011 03:38 Japan's Mitsubishi Chem to shut naphtha crackers in May-Jun

02/03/2011 03/03/2011 02/03/2011 01/03/2011

10:53 04:31 09:19 08:34

Saudi Arabia's PetroRabigh to shut down cracker in late April Saudi’s PetroRabigh to finalise expansion plans in April/May Malaysia’s Titan to shut smaller cracker for turnaround in June China’s Dushanzi Petchem to shut crackers, PE/PP units in August

Click for Price History NAPHTHA

FEEDSTOCK PRICES (SPOT) Price Range CFR JAPAN USD/MT +68 1021-1023 +68

Four weeks ago 860-861

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

Copyright ? 2010 Reed Business Information Limited. ICIS Pricing is a member of the Reed Elsevier plc group.

4th March 2011

Ethylene (Europe)
Editor Nel Weddle, nel.weddle@icis.com CONTRACT PRICES Price Range EUR/TONNE +60.00 1195.001195.00 +60.00

Click for Price History FD NWEMAR

One year ago 940.00940.00

US CTS/LB 75.8375.83

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

The March European ethylene contract price settled on Monday 28 February at 1,195/tonne FD NWE, up by 60/tonne from February. The first settlement was between a major producer and one of its customers, a key integrated consumer. These two contract parties were also behind the initial propylene settlement which came in 80/tonne higher at 1,185/tonne FD NWE. Ethylene availability was balanced to tight because of a number of unplanned cracker problems in the run-up to the start of the scheduled maintenance slate. Demand was still healthy, but it was too early to have a really clear view of whether or not the new high contract price would have an impact. Upstream In the crude oil markets, the ongoing conflict in Libya and subsequent disruption to oil exports, plus the possibility of further civil unrest in other Middle East oil producing nations, kept prices at the highest levels since August 2008. On Friday afternoon, April Brent was trading around $115.95/bbl, up from the previous week’s close of $112.14/bbl. April WTI was trading around $103.65/bbl, up from $97.88/bbl. This week the European naphtha cargo market traded within a range of $951-1011/tonne CIF NWE. Prices climbed for most of the week, before finishing at $1001-1009/tonne CIF NWE on Friday afternoon. There was little activity, but the spot market had tightened further from the previous week. The arbitrage to Asia remained closed, but for certain grades of naphtha an arbitrage was open to the US. Demand from the petrochemical sector was again muted, but from the gasoline industry it was steady. Downstream The settlement of the March ethylene contract set the scene for the March polyethylene (PE) market and increases of 60-110/tonne were announced for March PE, depending on the supplier and the grade of PE concerned. PE buyers were more or less resigned to paying higher prices in March, but they planned to buy no more than they needed, and those who could, avoided buying at all. Prices were at a record high for some grades and buyers feared a price crash which would leave them holding high-priced stock.

Cracker update European cracker margins based on naphtha feedstock fell by a massive 30% in the week ending 25 February because of strong upstream gains driven by the continuing unrest in the Middle East. Contract margins dropped by 135/tonne ($185/tonne) to 317/tonne on the back of a $74/tonne increase in naphtha, according to ICIS data. Contract liquefied petroleum gas (LPG) margins were on par with those of naphtha, despite being affected by a $68/tonne rise in LPG prices. as a result, Some cracker operators with the flexibility to do so have already been benefiting from the improvement in LPG margins. One producer said this week that it had already swung “full force” into LPG cracking and was almost at the limit of its capability. Other operators were widely expected to have done the same despite the obvious impact on the already snug propylene and butadiene markets. Following the contract settlements on Monday, naphtha prices strengthened and put naphtha cracker margins under further pressure. Most crackers were running at technical maximum where possible, continuing to be stimulated by the very healthy co-product markets. The NOC cracker based at Ras Lanuf, Libya, was believed to have been shut down around the weekend of 19-20 February, in response to the heightening tensions in the country. There was no indication when operations might be back to normal. Sources were of the opinion that the shutdown process had been ordered, however, rather than being an emergency stop. The FAO - ExxonMobil, Total Petrochemicals joint venture NC3 cracker at Antwerp in Belgium, was still offline. It had shut down a couple of weeks ago because of some technical problems, according to sources. Some players anticipated a restart by 1 March, but there was also talk which suggested a mid-March re-start. No details were confirmed. The cracker has the capacity to produce 600,000 tonnes/year of ethylene, according to ICIS data. The status of another of FAO’s Antwerp crackers, NC2, was unclear this week, but sources said that it was still offline. There were reports late last week that it had gone down on a technical issue. Talk of a propylene force majeure (FM) was not confirmed and no further details were available by the time of going to press. This cracker, which can produce 560,000 tonnes/year of ethylene, had been down for an extended period in Q4 of last year. Planned maintenance was imminent at DOW’s No 1 cracker in Terneuzen, the Netherlands and at SABIC’s Olefins 3 cracker based at Geleen, also in the Netherlands. The crackers both have the capacity to produce 590,000 tonnes/year of ethylene according to ICIS data.

SPOT PRICES Click for Price Price Range Four weeks History ago FD NWE PIPELINE EUR/TONNE +75.00 1195.00- +60.00 1120.001195.00 1135.00 CIF NWE USD/TONNE +50.00 1600.00- +50.00 1400.001650.00 1500.00 CIF MED USD/TONNE +50.00 1550.00- +50.00 1400.001600.00 1450.00

US CTS/LB 75.8375.83 72.5774.84 70.3172.57

Limited activity was reported in the spot market this week because of the late contract settlement and player absences due to a couple of industry functions midweek.

Sources reiterated that the largely bullish outlook meant that players would keep a tight grip on their volumes. The general view was that transactions would likely to take place at contract value or above on the pipeline. The published range has been adjusted in line with this sentiment. At the coast, deep-sea availabilities remained limited, particularly from the Middle East, but sources said that weakening Asian prices could result in more supply for Europe, particularly to cover the Libyan outage. The last Libyan ethylene vessel was successfully loaded around 23 February, some sources reported, but tanks were now empty and the cracker was down. One or two traders were heard seeking coverage for lost Libyan volumes for anytime between 3 months to a year which highlighted the uncertainty over developments in the region.

A 9-10,000 tonne cargo ex-Taiwan was reportedly due to load 15-20 March for Europe. Spot prices in the region were pegged at around $1,300/tonne FOB. The freight rate was unknown, but sources thought delivered basis prices would at least be around $1,600/tonne CIF NWE. A smaller cargo - 4,500 tonnes - also ex-Taiwan was being discussed as well. However, with a higher freight rate because of the smaller vessel size, the landed price would be closer to $1,750/tonne CIF NWE. An Iranian tender closed this week with the first-half March loading cargo bound for Europe because of the better netback. Asian prices softened by $30-50/tonne because of weak demand and southeast Asian prices were assessed at $1,300-1,350/tonne CFR. No further details on any of these cargoes could be found by the time of going to press. ($1 = 0.72) This week 04/03/11 04/03/11 28/02/11 28/02/11 28/02/11 on ICIS ( www.icis.com ) 13:13 Europe naphtha spikes above $1,000/t on firm crude, crack spread 10:22 SABIC Wilton LDPE on planned outage as prices near record high 17:45 INEOS targets increases of up to 110/tonne for Europe March PE 15:33 Europe naphtha cracker margins drop 30% on upstream volatility 14:10 Europe March ethylene, propylene settle up

Click for Price

FEEDSTOCK PRICES (SPOT) Price Range

History NAPHTHA

CIF NWE USD/TONNE

+62

1001-1009

+62

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

Copyright ? 2010 Reed Business Information Limited. ICIS Pricing is a member of the Reed Elsevier plc group.

4th March 2011

Ethylene (US Gulf)
Editor William Lemos, william.lemos@icis.com NET CONTRACT PRICE Price Range US CTS/LB +3.75 49.00

Click for Price History DELIVERED FEB

One year ago 49.00

USD/MT 1080

Click for Price History DEL (PIPELINE)

SPOT PRICE Price Range US CTS/LB +2.25 53.0053.88 +1.88

Four weeks ago 46.00-47.25

USD/MT 1168-1188

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Rising ethylene spot prices and feedstock costs drove US ethylene February contracts up 3.75 cents/lb to 49.00 cents/lb ($1,080/tonne, 778/tonne), sources said during the week ended 4 March. The February contract increase was largely in line with market expectations and erased a 3.25 cent/lb drop in January. Spot ethylene was heard traded for March delivery at 53.000-53.875 cents/lb on the Williams system and 53.500-53.750 cents/lb on the Equistar system this week. A trader offered ethylene on a formula basis at [ethane] + 25 cents/lb. 2H 2011 bids and offers were heard in the 47.0-49.5 cent/lb range. A couple of 2H deals were heard done, but details were elusive. Forward curves suggest a backwardated ethylene market through the second half of the year. For the month of February, the average of the weekly spot ranges as assessed by ICIS was 48.9 cents/lb, compared with 42.8 cents/lb in January. The continued increase in March ethylene spot prices is likely to provide support for another contract hike in March, sources said. Higher ethane prices could also support a contract increase in March, sources said, although ethane prices have defied the trend of higher energy prices this week. Mont Belvieu ethane prices were heard at 66.00-67.50 cents/gal around midday on 4 March, down from 71.0-72.5 cents/gal a week earlier. Production News A market participant said the industry had recovered from unplanned outages in February, but there were several planned maintenance turnarounds approaching. Dow Chemical restarted its 500,000 tonne/year Plaquemine 2 cracker in Louisiana this week, the company said. The unit resumed operations 3 March after being shut down for repairs on 16 February. Dow has two crackers in Plaquemine with combined ethylene capacity of 1.26m tonnes/year.

LyondellBasell’s La Porte cracker in Texas is operating normally following its restart in February, the company said. LyondellBasell restarted the 789,000 tonne/year cracker during 18-19 February, but the unit had been running at reduced rates following an early February fire at feedstock supplier Enterprise Product’s natural gas liquids (NGL) plant in Mont Belvieu, Texas. This week, LyondellBasell said it has addressed logistical issues that were hindering operations after the Enterprise fire. A couple of minor production glitches were noted during the week. Chevron Phillips avoided a full shutdown at its Cedar Bayou cracker in Texas following a power outage in the Mont Belvieu area on 28 February. A minor amount of production was lost, according to market sources. It was unclear if other petrochemical plants in the area were affected. INEOS’ Chocolate Bayou 1 cracker in Texas reported flaring for 7 hours on 1 March related to an upset with the demethanizer tower. Downstream US PE producers implemented price increases of 3 cents/lb in February and were sending initial March invoices with an 8 cent/lb price hike. Offers for March PE export cargoes jumped by 3-5 cents/lb as producers responded to higher international resin prices and crude oil markets. Indicative Natural Gas Liquid (NGL) prices – Mont Belvieu, TX US$/gal Feb 11 Feb 18 Feb 25 Propane 1.31 1.37 1.54 Butane 1.68 1.78 1.83 Isobutane 1.81 1.92 1.87 N. Gasoline 2.17 2.22 2.40 Ethane 0.65 0.67 0.68 NYMEX Closing Feb 11 Feb 18 Feb 25 Crude Oil 85.58 86.20 97.88 Natural Gas 3.91 3.87 4.00 ($1 = 0.72) Covering editor: David Barry (david.barry@icis.com) This week on ICIS news ( www.icis.com ): 04/03/2011 00:18 US PE producers implement Feb hikes, look for more in March 03/03/2011 21:50 CPChem sees minor impact from Texas power outage - sources 03/03/2011 05:24 Samsung Total to debottleneck Daesan cracker during turnaround 03/03/2011 04:31 Saudi’s PetroRabigh to finalise expansion plans in April/May 02/03/2011 22:42 Global PE oversupply to reach 25m tonnes by 2015 - Egypt CEO

Mar 4 1.38 1.76 1.81 2.49 0.66 Mar 4 104.42 3.81

FEEDSTOCK PRICES (SPOT) Click for Price History NAPHTHA Price Range DEL USG PARAFFINIC USD/MT +27 989-994 +23

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

Copyright ? 2010 Reed Business Information Limited. ICIS Pricing is a member of the Reed Elsevier plc group.

4th March 2011
Ethylene Glycol (US Gulf)
Editor Gene Lockard, gene.lockard@icis.com CONTRACT PRICES Price Range US CTS/LB +4.00 56.0060.50 56.0060.50 61.0066.00 91.0095.00 Click for Price History FOB (EGI) FEB One year ago +3.50 48.00-52.00 +3.50 48.00-52.00 -3.00 49.00-52.00 USD/MT 1234.591333.80 1234.591333.80 1344.821455.05 2006.202094.39

FOB(EGF) EXPO FEB US CTS/LB +4.00 FOB (DEG) FEB FOB (TEG) FEB US CTS/LB -2.00 US CTS/LB +2.00

+2.00 70.00-73.50

Click for Price History FOB BARGES (EGAF)

SPOT PRICES Price Range US CTS/LB n/c 55.00-57.00 n/c

USD/MT 1212.541256.63

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Asia list prices for 2011 (all CFR Asia, in USD): Jan $1,150/tonne; Feb $1,220-1,230/tonne; Mar $1,350-1,380/tonne Ethylene glycol US ethylene glycol (EG) 7-cent/lb ($154/tonne, 111/tonne) price hikes that were proposed for March were going through during the week ending 4 March amid a combination of market drivers, sources said. On the supply side, a series of upcoming turnarounds beginning in March and lasting through the second quarter was expected to exacerbate an already-tight supply situation, a trader said. EG has been tight for several weeks following unplanned cracker outages and exports to Europe, where demand ran well ahead of supply. US demand was firm, and orders at the March proposed prices had been heard, a reseller said. The high price of cotton contributed to the demand, since fibre producers were substituting polyester fibre for cotton. EG is used in the production of polyester fibres. However, the domestic EG market had slowed somewhat as stalled monoethylene glycol (MEG) prices in China prompted pushback from buyers. Rising interest rates and a tightened money supply in China were likely behind the slowdown there, the reseller said.

Prices in Asia strongly affect price sentiment in the US. Globally, a turnaround delay in the Middle East from March/April until June was expected to relieve some supply pressure from the market. However, that was somewhat offset by a drop in ethylene production in Kuwait until June, a trader said.

Feedstock news February ethylene contracts settled at 49 cents/lb, a 3.75 cent increase from January. Based on current ethylene spot prices and rising energy prices, market participants said March ethylene contracts will likely be in for some additional increases. Ethylene for March traded at 53.00-53.25 cents/lb on the Williams pipeline system and 53.5053.75 on the Equistar pipeline system. That compares with March deals at 52.00-53.50 cents/lb a week earlier. In the energy sector, intensifying clashes in Libya prompted concerns that the crisis would spread and affect the region’s oil supply chain. That sent the price of crude oil up on the NYMEX futures contract. The table below shows the evolution of crude oil prices in the last four weeks. NYMEX Front-Month Crude Oil Contract Date 11 Feb 18 Feb (US$/bbl) 85.58 86.20

25 Feb 97.88

4 Mar 104.42

Diethylene glycol March price increases of 4 cents/lb for US diethylene glycol (DEG) were expected to go through as rising supply was more than met by an increase in demand, sources said. Despite the uptick in demand, buyers could get supply – if they paid up, a reseller said. In general, the domestic DEG market was considered moderately well balanced as the exports to Asia seen in recent weeks slowed or stopped. That sent domestic supply up just as demand drivers began to kick in. DEG demand comes from a wide number of products, including materials used in the building and remodelling sector. Triethylene glycol US triethylene glycol (TEG) price increases of 2 cents/lb that were proposed for March are likely to pass, a reseller said, adding that March is expected to be a good month for TEG. Supply has tightened, in part due to the conversion of Dow Chemical’s St Charles unit in Louisiana. The unit now produces purified ethylene oxide (EO) only. Prior to the conversion, the unit produced EO and EG. While on-purpose TEG could still be made at the unit, there would no longer be the TEG that was formerly co-produced during EG production, a trader said. TEG demand is expected to slow early in April as moderating weather across the country slows the natural gas sector. Natural gas pipeline operators use TEG as a drying agent.

Finished Anti-Freeze Prices East of the Rockies*: Branded: (Prestone, Peak & Zerex excluded) Bulk FOB: $5.00-5.30 /gal

Drums FOB: $5.40-5.70/gal Cases FOB: $5.70-6.00/gal Private Label: Bulk FOB: $4.90-5.20/gal Drums FOB: $5.40-5.70/gal Cases FOB: $5.70-6.10/gal *Prices west of the Rockies carry a premium of 5-20 cents/gal This week on ICIS ( www.icis.com ): 04/03/2011 20:30 Dow restarts Plaquemine cracker in Louisiana 04/03/2011 19:47 US February ethylene jumps 8% on rising spot prices, feedstocks 04/03/2011 17:50 IQA Spanish EO/MEG plant restarts, spate of other outages planned 04/03/2011 08:12 S Korea’s LG Chem to shut Daesan MEG unit in March-April 04/03/2011 08:03 Malaysia’s Optimal Glycols to restart MEG unit in Mid-March

Click for Price History ETHYLENE(NET CONTRACT) ETHYLENE OXIDE

FEEDSTOCK PRICES Price Range DELIVERED FEB FOB FEB US CTS/LB US CTS/LB +3.75 +3.00 49.00 45.50-53.75 +3.00 49.00

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4th March 2011
Expandable Polystyrene (Asia Pacific)
Editor Clive Ong, clive.ong@icis.com SPOT PRICES BLOCK Click for Price History CFR N.E.ASIA CFR CHINA FOB KOREA CFR S.E.ASIA DEL EAST CHINA DEL SOUTH CHINA PACKAGING Click for Price History CFR N.E.ASIA CFR CHINA FOB KOREA CFR S.E.ASIA DEL EAST CHINA DEL SOUTH CHINA Price Range USD/MT USD/MT USD/MT USD/MT n/c n/c n/c n/c 1660-1680 1660-1680 1650-1670 1670-1690 12900-13100 12900-13100 n/c n/c n/c n/c -100 -100 Four weeks US CTS/LB ago 1570-1580 75.3076.20 1570-1580 75.3076.20 1560-1570 74.8475.75 1580-1600 75.7576.66 12000.0089.0412200.00 90.42 12000.0089.0412100.00 90.42 Four weeks US CTS/LB ago 1520-1530 73.0373.94 1520-1530 73.0373.94 1510-1520 72.5773.48 1530-1550 73.4874.39 11600.0085.5811800.00 86.97 11600.0085.5811700.00 86.97

CNY/MT -100 CNY/MT -100

Price Range USD/MT USD/MT USD/MT USD/MT n/c n/c n/c n/c 1610-1630 1610-1630 1600-1620 1620-1640 12400-12600 12400-12600 n/c n/c n/c n/c -100 -100

CNY/MT -100 CNY/MT -100

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing,com and click on “methodology”.

Market summary Asia expandable polystyrene (EPS) prices were little changed this week as persistently poor demand weighed on sentiment.

Weak feedstock styrene monomer (SM) values below $1,450/tonne CFR China also added to the downward pressure of resin numbers. End-users largely kept to the sidelines lines after picking up some parcels last week. Most maintained just sufficient stocks to tide them over immediate needs. Consequently, some suppliers lowered offers this week, in view of the weak buying momentum. Sellers conceded that demand would likely remain weak in the near term, as factories typically ramp up production of finished goods in the second quarter. The construction industry which uses insulation panels made from EPS would also enter a peak towards the middle of the year. EPS operating rates in China were estimated at 60-65%, mostly unchanged from last week. In eastern China, domestic prices were weaker at yuan (CNY) 12,400-12,600/tonne DEL for packaging EPS and CNY 12,900-13,100/tonne DEL for block flame retardant resins. In southern China, local values were at CNY 12,400-12,600/tonne DEL for packaging grades and CNY 12,90013,100/tonne DEL for block flame retardant resins. Spot Offers of packaging resins were heard around $1,640/tonne CFR China and Hong Kong to limited buying interest. Sporadic deals were reported in the low $1,600s/tonne CFR China and Hong Kong. Block flame retardant parcels were sold around $40-50/tonne higher than the packaging types. Export offers to Europe and the Middle East were cited at $1,630/tonne FOB Asia for packaging EPS and $1,670/tonne FOB Asia for block flame retardant grades. The offers were some $1020/tonne lower than last week but still found limited interest. In Taiwan, local offers of packaging resins were quoted at Taiwan New Dollar (NT$) 49/kg DEL, up from NT$47-48/kg DEL previously. Demand was similarly lacklustre with few fixtures heard this week. In southeast Asia, offers of packaging parcels remained around $1,650/tonne CFR while buying momentum remained weak. Some spot lots were sold in the low $1,600s/tonne CFR SE Asia. ($1=CNY6.57) ($1=NT$29.44) This week in ICIS news ( www.icisnews.com): 04 Mar 11 04:22 China’s Yantai Wanhua to start up new complex in 2014 04 Mar 11 02:44 Japan’s Sumitomo Chemical to restart Jurong MMA line on 1 April 03 Mar 11 10:41 Azerbaijan's AzMeCo to build new methanol plant by end of 2011 03 Mar 11 10:19 Petronas Q3 operating profit surges to $1.19bn on higher sales 03 Mar 11 09:27 Japan's Kuraray to shut PMMA plant for turnaround in Q225 Feb 11 02:55 Asia benzene falls $50/tonne on weaker US crude

Click for Price History STYRENE

FEEDSTOCK PRICES (Contract - Import) Price Range CFR N.E.ASIA FEB USD/MT +53 1423-1457 +57

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4th March 2011
Mono Ethylene Glycol (Asia Pacific)
Editor: Becky Zhang, becky.zhang@icis.com CONTRACT PRICE (FIBRE GRADE) Price Range One year ago US CTS/LB USD/MT +130 CNY/MT +800 1350-1400 1025010250 SPOT PRICES Price Range USD/MT +15 1250-1262 9800-9950 +17 +100 +170 +800 1050-1100 8550-8550 61.23-63.50 70.75-70.75 Click for Price History CFR ASIA MAR DELIVERED CHINA FEB

Click for Price History CFR CHINA MAIN PORT EX-TANK CHINA

Four weeks ago 1200-1220 9400-9550

US CTS/LB 56.70-57.24 67.64-68.67

CNY/MT +100

NOTE: For full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Market summary Asia monoethylene glycol (MEG) spot prices rose $15-17/tonne this week to $1,250-1,262/tonne CFR China Main Port (CMP), mainly driven by bullish PTA futures and assisted by firmer crude prices. Market fundamentals were described by most players as too weak to support the recent hikes. Storage tanks in China’s major ports remained full due to continued soft demand from end-users. Most polyester makers in China were heard to have maintained 20 days of MEG inventory, showing limited buying interest for spot shipments. MEG supply was expected to stay abundant in March but would tighten from April due to the upcoming major shutdowns in the Middle East during April to May. Coupled with the expectations of growing downstream polyester demand with the approach of the peak season from April to May, many anticipated MEG prices to extend gains in the next two months. However, some players noted that it had become difficulty for MEG to go up further due to high inventory pressures. A short-term downward correction was ideal to digest excessive supplies, which provided healthier market fundamentals for potential upsides.

In addition, there were worries that a tightening monetary policy in China would mop up excessive liquidity and speculative trading in the market, which had driven MEG spot prices to 37-month highs. Chinese import market Strong rebounds in PTA futures early this week boosted market sentiment, and drove up Asia spot MEG discussions to $1,245-1,255/tonne CFR CMP on Monday and $1,255-1,265/tonne CFR CMP on Tuesday. Transactions were heard concluded mostly at $1,250/tonne CFR CMP on Monday, and moved up to $1,255-1,260/tonne CFR CMP on Tuesday, all for bonded warehouse cargoes. For late March shipments, bids at $1,260/tonne CFR CMP failed to draw attention from sellers on Tuesday as most of them were in no hurry to sell due to uncertainty over the outlook for March. Trading momentum slowed on Wednesday, as the fluctuation in PTA futures and a slow recovery in downstream polyester sales generated jittery sentiment among players, who became unsure about how much MEG prices could go up further, given full port inventories and soft buying interest from end-users. Prices remained steady, with two bonded warehouse parcels heard fixed at $1,258/tonne CFR CMP and $1,260/tonne CFR CMP, respectively. Another bullish PTA uptrend on Thursday morning propelled MEG offers to reach $1,270/tonne CFR CMP, against bids at $1,255-1,260/tonne CFR CMP. A late March arrival regional was heard to have been sold at $1,265/tonne CFR CMP during the day, while negotiations for a Middle East cargo at $1,260/tonne CFR CMP were inconclusive. Prices weakened on Friday following a 2% fall in PTA futures. Discussion levels declined to $1,2501,255/tonne CFR CMP, with a bonded warehouse cargo heard changing hands at $1,250/tonne CFR CMP in the afternoon. Downstream demand The sales-to-output ratio at most Chinese polyester fibre and yarn plants jumped to 150-180% on Monday, driven by the bullish opening of PTA futures. It softened to 50-80% in the following two days, but recovered to 100-130% towards the close of the week regardless of weaker PTA futures and spot feedstock prices. Downstream textile factories were forced to return to the market to replenish depleted inventories, said several major polyester makers. A majority of textile plants had resumed production in early March after the Lunar New Year celebrations, a specialist in the textile industry said. This was clearly shown in the transaction volumes at the benchmark China Textile City in Shaoxing, which rose steadily to 3.7m meters/day on Friday from last week’s 3m meters/day. The volumes, however, were still below the normal range of 4m-6m metres/day in 2010. Margins for partially oriented yarn (POY) 150D/48F, a typical yarn grade, and polyester staple fibre (PSF) remained largely stable at around yuan (CNY) 400-600/tonne and CNY600-800/tonne, respectively, benefited from a steady increase in the downstream demand. Contract Shell proposed its March Asian Contract Price (ACP) nominations at $1,350/tonne CFR Asia, up by $120/tonne from its February level. The other two MEG majors, MEGlobal and SABIC nominated their March ACPs at $1,380/tonne CFR Asia and $1,400/tonne CFR Asia, up by $160/tonne and $170/tonne, respectively, from February. This has been the seventh consecutive week of hikes in ACP since September 2010. MEG ACP nominations in 2011, CFR Asia Month List prices Jan 1150-1150 Feb 1220-1230 Mar 1350-1400 Apr May

Month JUL AUG SEP OCT NOV

list prices

Jun

DEC

Sinopec’s February contract price was finalised at CNY10,250/tonne DEL, up by CNY800/tonne from its January contract. March nominations were proposed at CNY10,300/tonne DEL. Sinopec monthly contract settlement in 2011, delivered China Month List prices Month Jan 9450 JUL Feb 10250 AUG Mar SEP Apr OCT May NOV Jun DEC Production news Malaysia’s Optimal Glycol expects to restart its 380,000 tonne/year MEG unit at Kerteh, Terengganu in mid March after a month-long turnaround. South Korea’s LG Chem expects to shut its 125,000 tonne/year Daesan plant from 20 March to 15 April for scheduled maintenance. India’s Reliance plans to shut its 150,000 tonne/year No 3 unit in Hazira, Gujarat in on 9 March for ten days of maintenance. Thailand’s TOC Glycol plans to defer a month-long shutdown at its 390,000 tonne/year MEG plant at Map Ta Phut in Rayong province, initially set in May. However, the new date has not been fixed, and would have to coordinate with shutdown plans at its upstream ethylene cracker.

list prices

Click for Price History CFR CHINA MAIN PORT

DIETHYLENE GLYCOL SPOT PRICES Price Range One year ago US CTS/LB USD/MT -15 1335-1345 -15 1030-1050 60.55-61.01

Market summary Asian diethylene glycol (DEG) prices fell by $15/tonne this week to $1,335-1,345/tonne CFR CMP, reflecting transactions and discussion levels. Mounting port inventories, a slow recovery in downstream demand, and weak buying interest exerted downward pressure on prices. Bullish crude prices, a strong uptrend in the feedstock ethylene prices, and firmer co-product MEG values, failed to boost DEG prices. Poor market fundamentals dragged DEG prices down, said major traders. Even speculative traders, who had been actively buying product to push up prices in the past month, retreated to the sidelines after offloading most of their cargoes because of a lack of confidence in any potential price upsides. A major northeast Asia producer set its selling indications at $1,370/tonne CFR CMP for March delivery cargoes, but the offer attracted few buyers as it was deemed too high as compared with published prices market could currently accept. Spot market Trading activity picked up slightly this week as the soft US dollar prices opened up a window for re-financers.

Buying enquiries for March-delivery cargoes were heard at $1,330-1,335/tonne CFR CMP, against offers at $1,350-1,355/tonne CFR CMP. A Middle Eastern cargo was heard to have been sold by a producer at $1,345/tonne CFR CMP in the middle of the week. An Indonesia parcel, exempted from 3% import duty, was heard changing hands at $1,380/tonne CFR CMP, which was equivalent to $1,340/tonne CFR CMP inclusive duty. Separately, a trader was heard to have booked a bonded warehouse cargo at $1,340/tonne CFR CMP on Wednesday. Towards the close of the week, negotiations for a bonded warehouse cargo were heard underway at $1,335-1,340/tonne CFR CMP, but the two sides failed to reach an agreement. Chinese domestic prices fell to CNY10,350-10,400/tonne ex-tank in east China, down by CNY150/tonne from last Friday. Domestic DEG sales have been improving but at a slow pace, a domestic distributor said. Port inventories in China were estimated at over 80,000 tonnes this week, higher than the normal levels of 40,000-50,000 tonnes. ($1 = CNY6.57) This week 04 Mar 11 04 Mar 11 04 Mar 11 03 Mar 11 03 Mar 11 on ICIS news ( www.icis.com): 08:28 India’s Reliance plans shutdown of MEG No 3 line from 9 March 08:03 Malaysia's Optimal Glycols to restart MEG unit in Mid-March 07:18 Asia PET at 16-year high on rising feedstock prices - source 12:06 Europe March MEG contract talks at stalemate over price rise level 19:20 US PET producers seek 7 cent/lb price hikes for March

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4th March 2011

Para/OrthoXylenes
(Asia Pacific)
Editors Loh Bohan, bohan.loh@icis.com PARA-XYLENE SPOT PRICES Price Range +2 1628-1638 +2 1652-1662 +2 1652-1662 +2 -12 -12 -12 -12 1657-1667 1634-1644 1658-1668 1658-1668 1663-1673

Click for Price History FOB KOREA * CFR TAIWAN * CFR CHINA MAIN PORT * CFR S.E.ASIA * FOB KOREA + CFR TAIWAN + CFR CHINA MAIN PORT + CFR S.E.ASIA +
NOTE:

USD/MT USD/MT USD/MT USD/MT USD/MT USD/MT USD/MT USD/MT

+2 +2 +2 +2 -12 -12 -12 -12

Four weeks US CTS/LB ago 1603-1613 73.84-74.30 1625-1635 74.93-75.39 1625-1635 74.93-75.39 1630-1640 1609-1619 1631-1641 1631-1641 1636-1646 75.16-75.61 74.12-74.57 75.21-75.66 75.21-75.66 75.43-75.89

* = Price range at close of business Friday. + = Price range for the week.

Click for Price History CFR ASIA Q4 CFR ASIA MAR DELIVERED CHINAFEB

CONTRACT PRICES Price One year ago Range USD/MT +260 1173-1173 +260 953-953 USD/MT +35 1655-1655 +35 1020-1020 CNY/MT +1350 13050- +1350 8400-8400 13050

US CTS/LB 53.21-53.21 75.07-75.07 90.07-90.07

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

The following is a list of located deals for the week in chronological order: $1,660/tonne CFR Taiwan and/or CMP, April $1,660/tonne CFR Taiwan and/or CMP, April 50% ACP + 50% average of published CFR CMP price + $8-9/tonne, executed on CFR SE Asia basis ** $1,670/tonne CFR Taiwan and/or CMP, April $1,665/tonne CFR Taiwan and/or CMP, April $1,660/tonne CFR Taiwan and/or CMP, April ** An end-user was involved in this deal Note: All cargoes are standard 5,000-tonne lots unless otherwise stated

Spot:

The Asian paraxylene (PX) spot market started the trading week on a relatively subdued note, amid fluctuations in the key downstream purified terephthalic acid (PTA) market. Trade subsequently picked up after mid-week although prices softened on Thursday and Friday following weaker sentiment reported in the PTA market. Opinions were divided among players on the news that one key Asia Contract Price (ACP) negotiator had declared a price disagreement with the majority of its customers. While some reckoned that the firm stand adopted by the producer would underpin spot prices, others speculated that the market would be under downward pressure as the result of additional spot cargoes that would be made available. Meanwhile, the spot market was still dominated by traders, with the majority of end-users having their March delivery requirements covered. Discussions for March had waned from Tuesday onwards and talks in the spot market were predominantly centring on April shipments. Prices were assessed at $1,652-1,662/tonne CFR Taiwan and/or China Main Port (CMP) on Friday, $2/tonne higher than the previous week. Separately, the FOB Korea market remained a $24/tonne discount to CFR numbers, reflecting stable freight costs for the Korea-Ningbo/Taiwan route amid prevailing freight costs and bunker costs. Discussions for premiums on spot parcels on a 50% ACP: 50% spot average of published CFR Taiwan and/or CMP prices were stable at around $10/tonne for April shipment at the close of business Friday. On a side note, a Taiwan-based major, CPC, issued a buy tender on Thursday for a H2 April parcel and another H1 May cargo, at 50% ACP: 50% spot average of published CFR Taiwan and/or CMP prices of the delivery month with a premium. Contract: The March Asia Contract Price (ACP) was settled $35/tonne higher than the previous month at $1,655/tonne CFR Asia.

JX Nippon Oil and Energy was heard to have abandoned negotiations after the lower-thanexpected settlement. The Japanese major reported settlement with one of its customer at $1,660/tonne CFR Asia and declared price disagreement with the remaining end-users, however, no further details could be obtained. March contract deliveries to customers of the Japanese major were to be expected to drop around 30% as a result of non-settlement. Both ExxonMobil and Idemitsu Kosan had finalised the March ACP at $1,655/tonne CFR Asia. Meanwhile, South Korea’s S-Oil finalised its contract volumes for March delivery with its respective customers at $1,655/tonne CFR Asia. Sinopec finalised its February PX contract price last week at yuan (CNY)13,050/tonne DEL $1,659.35/tonne on an import parity basis. The Chinese major also announced its list price for March contracts at CNY13,050/tonne DEL - $1,659.35/tonne on an import parity basis. Separately, several 2011 term contracts between southeast Asian players were heard discussed at 50% ACP: 50% spot average of published CFR Taiwan prices with a premium of $3-8/tonne, executed on CFR SE Asia basis. ACP settlements for 2011. All prices quoted are on a per tonne CFR Asia basis and in $. January: 1,380; February: 1,620; March: 1,655

Contract prices finalised in the Chinese domestic market for 2011. All prices quoted are on a per tonne delivered China basis and in CNY. January: 11,700; February: 13,050 Covering editor: Yu Guo

Click for Price History CFR N.E. ASIA FOB N.E. ASIA CFR S.E. ASIA CFR INDIA

ORTHO-XYLENE SPOT PRICES Price Range USD/MT USD/MT USD/MT USD/MT n/c n/c n/c n/c 1290-1300 1270-1280 1280-1290 1280-1290 -5 n/c n/c n/c

Four weeks ago 1260-1270 1235-1250 1260-1270 1260-1270

US CTS/LB 58.51-58.97 57.61-58.06 58.06-58.51 58.06-58.51

Orthoxylene (OX) spot prices were assessed steady-to-weak in northeast Asia but were unchanged in India and southeast Asia amid thin trades. Weak buying interest from end-users in the downstream phthalic anhydride segment continued to hamper sentiment. Inventory levels at Zhangjiagang were heard at around 56,000 tonnes this week while close to 30,000 tonnes were scheduled to arrive at Chinese ports this month. In addition, around 4,0005,000 tonnes OX from Europe was heard to be heading to China. Spot phthalic anhydride (PA) prices were largely stable in China and southeast Asia. Co-product PX prices were $2/tonne higher at $1,652-1,662/tonne CFR Taiwan and/or CMP while feedstock isomer grade xylene were also largely stable. Northeast Asia Spot OX prices were stable-to-weak in the northeast Asian markets amid thin trades. Prices were assessed $5/tonne lower at the top end of the range at $1,290-1,300/tonne CFR NE Asia to reflect the bearish market sentiment. Producers continued to target higher prices due to the ongoing rally in crude prices, but buyers were largely sidelined due to lacklustre demand from the downstream segments. Meanwhile, Taiwan’s CPC sell tender for a 3,000-tonne March loading parcel was awarded to SK Chemical on 2 March at around $1,285-1,290/tonne FOB Taiwan. Offers for duty free April cargoes at $1,300/tonne CFR China were met with bids at $1,2801,290/tonne CFR China while higher offers from a trader at $1,330/tonne CFR China failed to draw any buyers. Selling indications at $1,320/tonne FOB ($1,294/tonne after normalisation) for April cargoes from a key supplier failed to generate any buying interest from traders due to the wide buy-sell gap. However, the producer was unwilling to revise down its offer but preferred to scale back production instead. There was no pressure to sell at lower prices at the moment, the producer said. Bids were capped at around $1,295/tonne CFR China due to the stiff competition posed by bonded cargoes. In China, close to 1,000 tonnes of bonded cargo was sold to a domestic factory at $1,290/tonne CFR China. Another 1,000 tonnes were sold at yuan (CNY)9,850/tonne ex-tank to an end-user in China. Close to 4,000 tonnes of Taiwan cargoes for March delivery were heard sold last week at $1,295/tonne FOB to China, unconfirmed with the buyer. This translates to $1,269.60/tonne FOB.

Appetite for fresh imports was blunted due to the availability of competitively prices bonded cargoes in the domestic China market, a trader said. Buyers preferred to delay their buying decision as prices would likely come off, an end-user in Taiwan said. Chinese major Sinopec raised its OX list price by another CNY100/tonne during the week to CNY9,900-10,000/tonne. Domestic OX prices were hovering around CNY9,850-9,900/tonne, CNY50/tonne higher at the low end of the range than last week. Southeast Asia and India Trading activity was thin in the region and limited offers were cited in the range of $1,2901,310/tonne CFR SE Asia/India. However, buying interest remained subdued as PA was not doing well and buyers were hesitant to book OX. Bids were largely range bound at $1,260-1,280/tonne CFR SE Asia/India. Demand was better in Indonesia as supply was snug. No firm offers were heard but producers were optimistic that the prices would remain firm due to the rally in crude oil prices. In India, prices were largely unchanged, reflecting current buy-sell ideas. Appetite for imports continued to be limited as the domestic supply was sufficient, market players said. Freight Freight rate between Taiwan and China was at around $25/tonne while freight from Taiwan to southeast Asia was at $40/tonne and to Mexico was at $65-70/tonne. Freight between Asia and Europe was hovering around $100/tonne. ($1 = CNY6.57) Covering editor: Saru Thukral This week in ICIS news ( Error! Hyperlink reference not valid. 04 Mar 11 07:18 Asia PET at 16-year high on rising feedstock prices - sources 04 Mar 11 06:49 South Korea’s KPIC plans Onsan HDPE plant turnaround in April 03 Mar 11 17:09 Libya unrest likely to keep oil prices high - analysts 03 Mar 11 09:47 Asia naphtha trade settles at $1,005-1,007/tonne 28 Feb 11 12:08 Asia March paraxylene settles up by $35/tonne at $1,655/tonne

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4th March 2011

Polyethylene (Asia
Pacific)
Editor Chow Beelin, beelin.chow@icis.com SPOT PRICES Price Range n/c n/c n/c 16801730 16801730 16801730 17501780 n/c n/c n/c +20 Click for Price Range LDPE FILM (All origins) CFR HONG KONG CFR CHINA CFR TAIWAN CFR S.E.ASIA USD/TONNE USD/TONNE USD/TONNE Four weeks ago 1660-1720 1660-1720 1660-1720 1680-1740 US CTS/LB

76.20-78.47 76.20-78.47 76.20-78.47 79.38-80.74

USD/TONNE +30

LDPE FILM CFR S.E.ASIA (subject to import USD/TONNE +30 duties of 5% to 20%) CFR S.E.ASIA (not subject to USD/TONNE +20 import duty) LLDPE FILM (All origins) CFR HONG KONG CFR CHINA CFR TAIWAN CFR S.E.ASIA USD/TONNE USD/TONNE USD/TONNE n/c n/c n/c

17501760 17701780 14101450 14101450 14101450 14301460

+20

1680.001700.00 1710.001740.00

79.38-79.83

+20

80.29-80.74

n/c n/c n/c +10

1400-1430 1400-1430 1400-1430 1390-1420

63.96-65.77 63.96-65.77 63.96-65.77 64.86-66.22

USD/TONNE +10

LLDPE FILM CFR S.E.ASIA (subject to import USD/TONNE +10 duties of 5% to 20%) CFR S.E.ASIA USD/TONNE +10 (not subject to import duty) HDPE FILM (All origins) CFR HONG KONG CFR CHINA USD/TONNE USD/TONNE n/c n/c

1430-1440

+10

1390.001400.00 1410.001420.00

64.86-65.32

1450-1460

+10

65.77-66.22

13201380 13201380

n/c n/c

1300-1360 1300-1360

59.87-62.60 59.87-62.60

CFR TAIWAN CFR S.E.ASIA

USD/TONNE

n/c

USD/TONNE +20

13201380 13501480

n/c +50

1300-1360 1300-1380

59.87-62.60 61.23-67.13

HDPE FILM CFR S.E.ASIA (subject to import USD/TONNE +20 duties of 5% to 20%) CFR S.E.ASIA USD/TONNE +40 (not subject to import duty) HDPE INJECTION (All origins) CFR HONG KONG CFR TAIWAN CFR S.E.ASIA USDTONNE USD/TONNE n/c n/c

13501430 14401480 13001330 13001330 13501470

+40

1300.001350.00 1360.001380.00

61.23-64.86

+50

65.32-67.13

n/c n/c +40

1270-1310 1270-1310 1290-1360

58.97-60.33 58.97-60.33 61.23-66.68

USD/TONNE +10

HDPE INJECTION CFR S.E.ASIA (subject to import USD/TONNE +10 duties of 5% to 20%) CFR S.E.ASIA USD/TONNE +40 (not subject to import duty) HDPE BLOWMOULDING (All origins) CFR HONG KONG CFR CHINA CFR TAIWAN CFR S.E.ASIA USD/TONNE USD/TONNE USD/TONNE n/c n/c n/c

13501430 14401470

+40

1290.001320.00 1330.001360.00

61.23-64.86

+40

65.32147000.00

USD/TONNE +10

13001330 13001330 13001330 13501480

n/c n/c n/c +50

1270-1310 1270-1310 1270-1310 1310-1370

58.97-60.33 58.97-60.33 58.97-60.33 61.23-67.13

HDPE BLOWMOULDING CFR S.E.ASIA (subject to import USD/TONNE +10 duties of 5% to 20%) CFR S.E.ASIA (not subject to USD/TONNE +40 import duty)

13501430 14401480

+40

1310.001340.00 1350.001370.00

61.23-64.86

+50

65.32-67.13

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Summary

China’s polyethylene (PE) prices were assessed stable, reflecting discussion and transaction levels. Trading regained momentum this week as persistent high crude futures and feedstock ethylene prices led buyers back to replenish stock. But price negotiations were still difficult with lower domestic prices cited as a bearish factor. In southeast Asia, trade gained pace in Indonesia, Malaysia and the Philippines where buyers returned to replenish stocks. Ample offers of Middle East HDPE film grade for re-export from China weighed down on buyer price ideas in Vietnam. The outlook was uncertain on Friday. High crude and feedstock ethylene prices are expected to support market sentiment, but there was concern that the current uptrend was driven more by cost push rather than strong demand, and hence might not be sustainable. LDPE Producer offers for Middle East and Asian film grade were cited at $1,730-1,760/tonne CFR China for March shipment, with deals cited mainly around $1,720-1,730/tonne CFR China. Iranian product offered at $1,700/tonne CFR China for March shipment, attracted bids in the high $1,600s/tonne CFR China. Russian material was sold at $1,660/tonne DAF Manzouli, which is equivalent to $1,660/tonne CFR China after taking into account of the preferential tariff for crossborder trade. In the China domestic market, imported film grade was selling at yuan (CNY) 13,450-13,900/tonne EXWH, CNY50-200/tonne higher from last week. Two southeast Asia film grades were offered at $1,840-1,850/tonne CFR Indonesia for March shipment, but deals could not be confirmed at this level. Iranian film grade was sold at $1,780/tonne CFR Thailand for March shipment. Chinese film grade was sold at $1,780/tonne CFR Vietnam for March shipment. LLDPE Inter-trader transactions were cited in the low-$1,400s/tonne CFR China for prompt delivery. In the China domestic market, imported material was sold at CNY10,900-11,600/tonne EXWH, CNY100-200/tonne higher from last week. Saudi material offered at $1,480/tonne CFR Vietnam for March delivery attracted no buying interest. Saudi sources were sold at $1,440/tonne CFR Philippines for March shipment. Asean material was sold at $1,460/tonne CFR Malaysia for March shipment. HDPE Traders’ offers of Iranian film grade were cited at $1,340-1,350/tonne CFR China for prompt lifting at the bonded warehouses, against buying ideas in the low-$1,300s/tonne CFR China. Asian film grade offered above $1,380/tonne CFR China for March shipment attracted no buying interest. In the China domestic market, different sources of film grades were discussed at CNY10,35011,100/tonne EXWH, CNY50-200/tonne higher from last week. Iranian film grade was offered at $1,380-1,400/tonne CFR Vietnam for re-export from China, attracting no buying interest. Thai film grade was sold at $1,480/tonne CFR Indonesia for March shipment. Two other Asean sources were offered at $1,550/tonne CFR Philippines for March shipment, attracting no buying interest. One of these Asean producers subsequently revised its March offer to $1,480/tonne CFR Philippines. Two Saudi film grades were sold at $1,380/tonne CFR Philippines and $1,430/tonne CFR Philippines, for March delivery. Deep-sea low melt index (MI) injection grade offered at $1,500/tonne CFR China for March shipment attracted no buying interest. Offers of different sources of low and high MI injection grade were cited at $1,320-1,380/tonne CFR China for March shipment, attracting no buying interest. In the north and east China domestic market, imported injection grade was discussed at CNY10,000-11,700/tonne EXWH, CNY100-700/tonne higher from last week. High MI Saudi injection grade was sold at $1,430/tonne CFR Philippines for March delivery. Traders’ sales of Middle East blow moulding grade were at $1,310-1,320/tonne CFR China for March shipment. In the east China domestic market, imported blow moulding grade was discussed at CNY10,250-11,000/tonne EXWH, CNY50-200/tonne higher from last week. Selling indications for Asean blow moulding grade were at $1,500-1,510/tonne CFR SE Asia for March shipment, against buying ideas below $1,500/tonne CFR SE Asia. ($1 = CNY6.57)

This week 04 Mar 11 04 Mar 11 04 Mar 11 03 Mar 11 03 Mar 11

in ICIS ( http://www.icis.com)/ http://www.icis.com)/ www.icis.com): 10:13 Indian producers hike local PP, PE prices on high import values 08:52 Crude rises as further attacks in Libya raise supply concerns 06:49 South Korea’s KPIC plans Onsan HDPE plant turnaround in April 05:24 Samsung Total to debottleneck Daesan cracker during turnaround 13:42 European Central Bank keeps interest rate at record low 1%

FEEDSTOCK PRICES Click for Price Range ETHYLENE Price Range CFR N.E.ASIA USD/TONNE -10 1320-1350 -30

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

Copyright ? 2010 Reed Business Information Limited. ICIS Pricing is a member of the Reed Elsevier plc group

4th March 2011

Polypropylene (Asia Pacific)
Editor Chow Beelin, beelin.chow@icis.com SPOT PRICES Price Range 15901640 15901640 16301700 n/c n/c n/c Click for Price History BOPP FILM (All origins): CFR CHINA MAIN USD/TONNE n/c PORT CFR HONG KONG CFR S.E.ASIA USD/TONNE n/c USD/TONNE n/c Four weeks ago 1520-1540 1520-1540 1530-1590 US CTS/LB

72.12-74.39 72.12-74.39 73.94-77.11

BOPP FILM: CFR S.E.ASIA (subject to import USD/TONNE n/c duties of 5% to 20%) CFR S.E.ASIA (not subject to import USD/TONNE n/c duty) IPP FILM (All origins): CFR CHINA MAIN USD/TONNE n/c PORT CFR HONG KONG CFR S.E.ASIA USD/TONNE n/c USD/TONNE +10

16301670 16801700 16201660 16201660 16401760

n/c

1530.001550.00 1560.001590.00

73.94-75.75

n/c

76.20-77.11

n/c n/c +60

1520-1540 1520-1540 1530-1590

73.48-75.30 73.48-75.30 74.39-79.83

IPP FILM CFR S.E.ASIA (subject to import USD/TONNE +10 duties of 5% to 20%) CFR S.E.ASIA (not subject to import USD/TONNE +30 duty) INJECTION (All origins): CFR CHINA MAIN USD/TONNE n/c PORT CFR HONG KONG CFR S.E.ASIA INJECTION USD/TONNE n/c USD/TONNE +20

16401700 17101760 16001640 16001640 16401760

+30

1530.001550.00 1560.001590.00

74.39-77.11

+60

77.56-79.83

n/c n/c +30

1500-1550 1500-1550 1530-1590

72.57-74.39 72.57-74.39 74.39-79.83

CFR S.E.ASIA (subject to import USD/TONNE +10 duties of 5% to 20%) CFR S.E.ASIA (not subject to import USD/TONNE +10 duty) CFR VIETNAM USD/TONNE +20

16401700 17101760 16401650 16001640 16401760

+40

1530.001560.00 1570.001590.00 1530.001550.00 1500-1550 1530-1590

74.39-77.11

+30 +20

77.56-79.83 74.39-74.84

FLAT YARN (RAFFIA) (All origins): CFR CHINA MAIN USD/TONNE n/c PORT CFR S.E. ASIA USD/TONNE +20

n/c +30

72.57-74.39 74.39-79.83

FLAT YARN (RAFFIA) CFR S.E.ASIA (subject to import USD/TONNE +10 duties of 5% to 20%) CFR S.E.ASIA (not subject to import USD/TONNE +10 duty) CFR VIETNAM USD/TONNE +20

16401700 17101760

+40

1530.001560.00 1570.001590.00

74.39-77.11

+30

77.56-79.83 74.39-74.84

16401530.00+20 1650 1550.00 BLOCK CO-POLYMER (GENERAL PURPOSE GRADES) (All origins): CFR CHINA MAIN 1640USD/TONNE n/c n/c 1580-1630 PORT 1670 1660CFR S.E.ASIA USD/TONNE n/c +10 1580-1630 1760 BLOCK CO-POLYMER (GENERAL PURPOSE GRADES) CFR S.E.ASIA (subject to import 16601580.00USD/TONNE n/c +10 duties of 5% to 1700 1590.00 20%) CFR S.E.ASIA (not 17101600.00subject to import USD/TONNE +10 +10 1760 1630.00 duty)

74.39-75.75 75.30-79.83

75.30-77.11

77.56-79.83

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Summary China’s polypropylene (PP) prices were assessed stable to reflect discussion and transaction levels. Trade regained momentum as high crude futures and feedstock propylene prices supported market sentiment. However, buying was mostly on a hand-to-mouth basis, as importers were generally unwilling to build up stocks at current prices. In southeast Asia, trade gained pace in Indonesia and the Philippines as importers returned to replenish stocks, because of concern that prices might increase further as a result of high crude and feedstock prices. Buying interest was subdued in Vietnam where ample offers of re-export cargo from China weighed on buying ideas. Tight regional supply coupled with high crude futures and propylene feedstock prices are likely to support the market going forward. However, there was concern that the current uptrend lacked strong demand support, and hence might not be sustainable.

BOPP film grade One Middle East product was sold at $1,600/tonne CFR China for March shipment. A second Saudi product was heard sold at $1,580/tonne CFR China for March shipment, but this could not be confirmed. In the China domestic market, local producers offered at yuan (CNY) 12,30012,750/tonne EXW/EXWH, CNY200-250/tonne higher from last week. Discussions in southeast Asia were within the range of $1,630-1,700/tonne CFR SE Asia for March shipment. IPP Saudi IPP was sold at $1,700/tonne CFR Philippines for March shipment. Thai material was heard sold at $1,760-1,790/tonne CFR Indonesia for March shipment, but deals at the high-end of the range could not be confirmed. Injection/yarn Traders’ offers for March shipment were cited in the low to mid $1,600s/tonne CFR China, with most deals cited at the low-end of the range. Transactions were also heard in the high$1,500s/tonne CFR China for March shipment, but these could not be confirmed. In the east China market, imported material was offered at CNY12,150-12,500/tonne EXWH, CNY150-300/tonne higher from last week. In southeast Asia, Middle East product was offered at $1,640-1,650/tonne CFR Vietnam for reexport from China, attracting some buying interest. Producer offers for Asian and Middle East sources from the high-$1,600s/tonne CFR Vietnam to $1,700/tonne CFR Vietnam attracted no buying interest. Thai material was heard sold at $1,760-1,800/tonne CFR Indonesia for March shipment, but deals at the high-end of the range could not be confirmed. Two Saudi product was sold at $1,650-1,680/tonne CFR Philippines for March shipment. Block copolymer Saudi and one Korean source were sold at $1,640-1,650/tonne CFR China for March shipment. Korean product was offered at $1,680/tonne CFR China and higher for March shipment, with negotiations underway. In the China domestic market, imported material was sold at CNY12,50013,200/tonne EXWH, CNY100/tonne higher from last week. Offers for Middle East and Asean product were above $1,700/tonne CFR SE Asia for March shipment, against buying ideas below $1,700/tonne CFR SE Asia. This week’s southeast Asia prices were assessed higher in line with the firm trend in the homopolymer PP segment. Production data: Formosa Chemicals and Fibers Corp plans to cut production at its 450,000 tonne/year PP facility at Mailiao in Taiwan to 60% in March due to a shortage of on-site propylene feedstock, a source close to the company said. Honam Petrochemical plans to shut its 380,000 tonne/year PP plant at Yeosu, South Korea, in early April for a 15-day turnaround, a company source said. Polymirae plans to shut three of its PP plants in Yeosu, South Korea, in April for maintenance, a company source said. Its three plants, with a combined capacity of 470,000 tonnes/year, would be shut at intervals and each line would be down for 15 days, the source said. Samsung Total Petrochemicals plan to shut its two PP plants at Daesan, South Korea, with a combined capacity of 840,000 tonnes/year in early May for a four-week turnaround, a source close to the company said. ($1 = CNY6.58) ($1 = Bt30.62) This week in ICIS news ( http://www.icis.com)/ www.icis.com) 04 Mar 10:13 Indian producers hike local PP, PE prices on high import values 04 Mar 08:52 Crude rises as further attacks in Libya raise supply concerns 03 Mar 11 05:24 Samsung Total to debottleneck Daesan cracker during turnaround 03 Mar 11 13:42 European Central Bank keeps interest rate at record low 1% 02 Mar 11 14:49 SABIC PP output fully on stream at Geleen after maintenance

FEEDSTOCK PRICES Click for Price History PROPYLENE CFR N.E.ASIA USD/TONNE +50 Price Range 1500-1530 +40

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

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4th March 2011
Polystyrene
(Asia Pacific)
Editor Clive Ong, clive.ong@icis.com SPOT PRICES GP: Click for Price History HONG KONG TAIWAN S.KOREA CHINA S.E.ASIA DEL EAST CHINA Price Range USD/TONNE +10 USD/TONNE +10 USD/TONNE +10 USD/TONNE +10 USD/TONNE +10 1560-1580 1570-1590 1570-1590 1560-1580 1580-1610 n/c n/c n/c n/c +20 n/c Four weeks ago 1480-1500 1490-1510 1490-1510 1480-1500 1500-1530 11300.0011800.00 11300.0011850.00 1650-1690 1650-1690 1670-1710 12400.0013300.00 12300.0013400.00 US CTS/LB 70.7671.67 71.2172.12 71.2172.12 70.7671.67 71.6773.03 80.0683.51 80.4183.51 77.1178.92 77.1178.92 78.0279.83 90.7697.32 89.7397.32

CNY/TONNE +50 11600-12100

DEL SOUTH CHINA CNY/TONNE +150 11650-12100 +100 HIPS: HONG KONG CHINA S.E.ASIA DEL EAST CHINA

USD/TONNE +10 USD/TONNE +10 USD/TONNE +20

1700-1740 1700-1740 1720-1760

+10 +10 +10

CNY/TONNE +150 13150-14100 +200

DEL SOUTH CHINA CNY/TONNE +200 13000-14100 +200 Note: All prices are CFR.

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Market summary Asian polystyrene (PS) prices were stable-to-firm this week despite persistently slow demand in the key Chinese market. There was also little support from feedstock styrene monomer (SM) values which slipped to the low $1,400s/tonne CFR China. PS buyers were hesitant to commit, in view of weak SM values. Most preferred to wait and see, in anticipation of a pull-back in prices.

However, PS sellers were keen to sustain resin prices while a few pushed for further increments, in anticipation that raw material costs would likely increase in the weeks ahead, given buoyant energy futures at above $100/bbl. Meanwhile, high-impact (HI) PS manufacturers continued to lament the high raw material polybutadiene rubber (PBR) values at above $4,000/tonne CFR NE Asia. Most HIPS makers continued to target higher resin prices despite slower than expected demand post Lunar New Year, as margins were constantly being eroded. On the whole, availability of HIPS resins was limited relative to general-purpose (GP) PS, which saw the premium of HIPS over GPPS expanding beyond $150/tonne currently. PS operating rates in China were estimated at 80-85%, unchanged from last week. In eastern China, domestic prices were firmer at yuan (CNY) 11,600-12,100/tonne DEL for GPPS and CNY 13,150-14,100/tonne DEL for HIPS. In southern China, local values higher were at CNY 11,65012,100/tonne DEL for GPPS and CNY 13,000-14,100/tonne DEL for HIPS. Spot Spot offers were cited at $1,570-1,610/tonne CFR China and Hong Kong for March GPPS parcels. Sporadic trades were concluded in the high $1,500s/tonne CFR China and Hong Kong. Offers of HIPS were cited at $1,750-1,800/tonne CFR China and Hong Kong. Some fixtures were heard in the low-to-mid $1,700s/tonne CFR China and Hong Kong. In Taiwan, sales of GPPS were conducted in the high $1,500s/tonne CFR while HIPS were around $1,750/tonne CFR. In southeast Asia, GPPS offers were heard in a range of $1,630-1,680/tonne CFR but buying interest was largely weak. Sporadic sales were heard at $1,610-1,640/tonne CFR SE Asia. Offers of HIPS were around $1,770-1,820/tonne CFR SE Asia. Some fixtures were heard in the mid $1,700s/tonne CFR SE Asia. ($1=CNY6.57) Production data Hong Kong Petrochemical restarted its 140,000 tonne/year PS unit in late February after a twoweek turnaround. This week in ICIS 04 Mar 11 04:22 04 Mar 11 02:44 03 Mar 11 10:41 03 Mar 11 10:19 03 Mar 11 09:27 news ( www.icisnews.com): China’s Yantai Wanhua to start up new complex in 2014 Japan’s Sumitomo Chemical to restart Jurong MMA line on 1 April Azerbaijan's AzMeCo to build new methanol plant by end of 2011 Petronas Q3 operating profit surges to $1.19bn on higher sales Japan's Kuraray to shut PMMA plant for turnaround in Q2

Click for Price History STYRENE

FEEDSTOCK PRICES (CONTRACT-IMPORT) Price Range CFR N.E.ASIA FEB USD/TONNE +53 1423-1457 +57

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

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4th March 2011

Propylene (Asia
Pacific)
Editor Peh Soo Hwee, soohwee.peh@icis.com SPOT PRICES Price Range USD/MT USD/MT USD/MT USD/MT USD/MT +50 +50 +30 +60 +20 1500-1530 1500-1530 1430-1450 1450-1490 1340-1360 +40 +40 +30 +60 +20 Click for Price History CFR N.E.ASIA CFR CHINA MAIN PORT CFR S.E.ASIA FOB N.E.ASIA FOB S.E.ASIA Four weeks US CTS/LB ago 1370-1380 68.0469.40 1370-1380 68.0469.40 1300-1330 64.8665.77 1310-1330 65.7767.58 1220.0060.781250.00 61.69

Deals/discussions for the week ended 4 Mar $1,525/tonne CFR China, 1 lot, early week $1,470-1,480/tonne CFR China, 2 lots, end-Mar arrival $1,530/tonne CFR Korea, 1 lot, end-Mar/early Apr arrival Deal/discussions around $1,550/tonne CFR NE Asia, 1 lot, H2 Mar/early Apr arrival $1,490/tonne FOB Korea, 1 lot, H2 Mar loading Bids $1,500-1,550/tonne CFR NE Asia, H2 Mar/H1 Apr arrival, according to traders Below $1,350/tonne FOB SE Asia, 1 lot, prompt lifting Sell ideas low to high $1,500s/tonne CFR NE Asia during the week Buy ideas mainly at $1,480-1,500/tonne CFR China Sell ideas more than $1,500/tonne FOB Taiwan, H2 Mar loading Buy ideas mid to high $1,400s/tonne FOB NE Asia Sell ideas more than $1,350/tonne FOB SE Asia Buy ideas below $1,350/tonne FOB SE Asia Market Summary Asian propylene spot prices firmed $20-60/tonne across the region, underpinned by tight supply and as the spike in feedstock naphtha and crude values during the week kept selling sentiment bullish. Most sellers were unwilling to offload propylene at below $1,500/tonne CFR NE Asia following a spike in naphtha values which crossed the $1,000/tonne CFR Japan mark late week and amid a heavy turnaround season in the months of March-May. Buying momentum from the leading Chinese market, however, slowed noticeably as prices in the key derivative polypropylene (PP) sector had not kept pace with the hike in the feedstock

market but other derivatives ranging from acrylic acid to propylene oxide and phenol were holding up well. Full tanks and high inventories on the back of slow sales had also resulted in congestion at key Chinese ports in Tianjin, Lianyungang and Taixing as cargoes could not be offloaded quickly, market sources said. On the other hand, the recent outage at Yeochun NCC (YNCC)’s largest naphtha cracker and ongoing maintenance at regional plants saw traders raising their price targets to above $1,550/tonne CFR NE Asia by late week. Separately, talk circulated in the market of arbitrage deals to Europe done below $1,500/tonne FOB NE Asia in the aftermath of the Libya crisis but further details were not available. Northeast Asia Spot prices rose $40-50/tonne to $1,500-1,530/tonne CFR NE Asia during the week, reflecting the majority of deals and discussons that took place above the $1,500/tonne level. Sporadic fixtures were located at $1,525-1,530/tonne CFR China/NE Asia while two cargoes arriving end-March into China were heard sold at $1,470-1,480/tonne CFR. The latter deals, however, were not included in the assessment as most buyers said they were not able to get cargoes at such prices as offers/selling ideas were clearly above $1,500/tonne CFR China during the week. Several buyers also indicated interest at $1,480-1,500/tonne CFR China but could not get their hands on spot material. Talk also circulated of a deal/discussions at around $1,550/tonne CFR NE Asia for late March/early April arrival but this could not be confirmed. The fixture was also seen even by some traders to be above what the broader market could accept due to strong buyer resistance at this level. In the Chinese domestic market, propylene spot prices were traded at yuan (CNY) 10,90011,000/tonne ex-tank in eastern China by Friday and were assessed at CNY11,500-11,550/tonne ex-tank/DEL Shandong over the same period, market sources said. On an FOB NE Asia basis, a regional lot was heard changing hands at $1,490/tonne for late March lifting. Separately, a regional producer pegged selling ideas for second-half March loading parcels at more than $1,500/tonne FOB NE Asia but sporadic buying ideas were mentioned in the mid to high $1,400s/tonne FOB NE Asia. Southeast Asia Spot prices were assessed up $30/tonne at $1,430-1,450/tonne CFR SE Asia in line with gains in China and to reflect buy-sell indications during the week. Selling ideas were mentioned at $1,450-1,500/tonne CFR SE Asia while sporadic buying ideas were in the low to mid $1,400s/tonne CFR SE Asia, depending on derivative sector. Deals, however, were scarce as the bulk of buyers were covered. Buyers said it was not possible to get propylene at $1,400/tonne CFR SE Asia amid higher freight costs and on the back of a prevailing uptrend in the Chinese market. Separately, a tender from Indonesia to sell spot lots loading March to June was heard to have been cancelled but no reasons were given, market sources said. On an FOB SE Asia basis, talk circulated in the market of a prompt cargo sold at below $1,350/tonne during the week but further details were not available. Selling ideas were pegged above $1,350/tonne FOB SE Asia for April shipments while buying ideas were mainly below $1,350/tonne FOB SE Asia. Contract Pricing in Taiwan 2011 February settlements were heard close to $1,350/tonne but the producer was not available for comment. January – $1,277/tonne. December – $1,216/tonne. November – $1,175/tonne. October – $1,118/tonne. September – $1,097/tonne. August – $1,067/tonne. July – $1,023/tonne.

June – $1,057/tonne. May – $1,196/tonne. April – $1,198/tonne. March – $1,165/tonne. February – $1,130/tonne. January – $1,128/tonne. Freight rates Intra southeast Asia spot freight rates were heard to be about $90-100/tonne Intra northeast Asia spot freight rates were heard at $70-100/tonne Southeast Asia to northeast Asia spot freight rates were heard to be close to $200/tonne Production News YNCC restarted its 857,000 tonne/year No 1 cracker on 27 February but the facility was running at a low rate of 40%, said a company source. Full production was expected to resume earliest by 1314 March as six of the 12 furnaces were not running smoothly, he added. Korea Petrochemical Industry Co (KPIC) is running its 470,000 tonne/year naphtha cracker at 100% following a brief outage on 27 February caused by a problem with the compressor valve, said a company official. Thai refinery and cracker operator IRPC plans to shut its 350,000 tonne/year naphtha cracker in Rayong for a turnaround in November this year, said a company source. A deep fluid catalytic cracking (DCC) unit at the site, which can produce around 120,000 tonnes/year of propylene, is expected to be taken off line during the same month for maintenance, the source said, adding that the specific dates had yet to be finalised. South Korea’s Samsung Total Petrochemicals plans to debottleneck its naphtha cracker in Daesan during a turnaround from end-April to early June, said sources close to the company. After the expansion, the nameplate ethylene capacity would be increased to over 900,000 tonnes/year from the existing 850,000 tonnes/year, they added. Mitsubishi Chemical will shut its 500,000 tonne/year cracker in Mizushima for maintenance from 16 May to 29 June. In Kashima, a 375,000 tonne/year No 1 cracker will also have a turnaround from 19 May to 27 June. A metathesis unit, which can produce around 150,000 tonnes/year of propylene, at the same site is also expected to undergo maintenance during this period, the source said. Another 453,000 tonne/year No 2 cracker in Kashima would also have a turnaround from 30 June to 17 August, the source added. Malaysia's Titan Chemicals plans to shut the smaller of its two naphtha crackers for scheduled maintenance in June, said a company source. The turnaround at the 285,000 tonne/year in Pasir Gudang was expected to last around one month but the source did not provide specific dates. Deals/discussions for the week ended 25 February 1,490/tonne CFR China, 1 lot of NE Asian origin, H1 Mar loading, unconfirmed 1 lot sold on formula into China, Mar loading 1,510/tonne CFR China, 1 lot, H2 Mar loading, unconfirmed 1,520/tonne CFR China, 1 lot, H2 Mar loading, unconfirmed Buy ideas $1,450/tonne CFR China, Mar loading Buy ideas $1,485/tonne CFR China, Mar loading Sell ideas $1,490/tonne CFR China, H1 Mar loading Sell ideas $1,500/tonne CFR China, H1 Mar loading Buy ideas $1,450/tonne FOB Korea, Mar loading, unconfirmed Sell ideas $1,500/tonne FOB Korea, Mar loading Sell ideas at least $1,350/tonne FOB SE Asia, Mar loading Sell ideas in the high-$1,300s/tonne FOB SE Asia, Mar loading, unconfirmed Sell ideas $1,450/tonne FOB SE Asia, Mar loading Buy ideas $1,320/tonne FOB SE Asia, Mar loading Buy ideas from the high-$1,300s/tonne CFR SE Asia to $1,400/tonne CFR SE Asia, Mar loading Sell ideas $1,420/tonne CFR SE Asia, H1 Mar loading ($1 = CNY6.57) This week in ICIS news: 03/03/2011 03:38 Japan's Mitsubishi Chem to shut naphtha crackers in May-Jun 03/03/2011 03:09 Saudi's PetroRabigh to shut PO unit in end-April

02/03/2011 07:48 Japan's Idemitsu to shut Chiba OCU on feedstock shortage 01/03/2011 05:33 PetroChina subsidiary Dagang shuts 100,000 tonne/year PP plant 28/02/2011 10:14 Thailand’s IRPC eyes Map Ta Phut cracker turnaround in November

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

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4th March 2011

Propylene (Europe)
Editor Nel Weddle, nel.weddle@icis.com CONTRACT PRICES Price Range EUR/TONNE +80.00 1185.001185.00 +80.00

Click for Price History FD NWEMAR

One year ago 910.00910.00

US CTS/LB 75.20-75.20

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

The March European propylene contract price settled on Monday 28 February at 1,185/tonne FD NWE, up by 80/tonne from February. This is the third consecutive record high contract price. The first settlement was between a major producer and one of its customers, a key integrated consumer. The same contract parties were also behind the initial ethylene settlement which came in 60/tonne higher at 1,195/tonne FD NWE. Propylene availability was tight. Planned and unplanned outages, reductions and now the increasing preference to cracker lighter feeds was impacting on supply. Demand was still relatively robust, source said, but there was concern that some reductions would be felt in derivative markets, which would fail to exploit their export potential. However, a clearer picture regarding demand was not envisaged for another week or two. Upstream In the crude oil markets, the ongoing conflict in Libya and subsequent disruption to oil exports, plus the possibility of further civil unrest in other Middle East oil producing nations, kept prices at the highest levels since August 2008. On Friday afternoon, April Brent was trading around $115.95/bbl, up from the previous week’s close of $112.14/bbl. April WTI was trading around $103.65/bbl, up from $97.88/bbl. This week the European naphtha cargo market traded within a range of $951-1011/tonne CIF NWE. Prices climbed for most of the week, before finishing at $1001-1009/tonne CIF NWE on Friday afternoon. There was little activity, but the spot market had tightened further from the previous week. The arbitrage to Asia remained closed, but for certain grades of naphtha an arbitrage was open to the US. Demand from the petrochemical sector was again muted, but from the gasoline industry it was steady. Downstream PP buyers expected to be paying hefty hikes in March, following the settlement of the propylene contract. The current spate of increases was expected to have a detrimental effect on demand, and many smaller and medium-sized buyers attempted to hold off buying in March. Others said they would place orders only when they had firm business negotiated at higher prices, otherwise it served no purpose to produce goods for stock which would lose its value when prices crashed. Demand for PP was not particularly strong, but demand still outstripped supply, and the

absence of significant amounts of imported material meant that producers had free rein to pass on increases to the market. Cracker update European cracker margins based on naphtha feedstock fell by a massive 30% in the week ending 25 February because of strong upstream gains, driven by the continuing unrest in the Middle East. Contract margins dropped by 135/tonne ($185/tonne) to 317/tonne on the back of a $74/tonne increase in naphtha, according to ICIS data. Contract liquefied petroleum gas (LPG) margins were on par with those of naphtha, despite being affected by a $68/tonne rise in LPG prices. As a result, some cracker operators with the flexibility to do so have already been benefiting from the improvement in LPG margins. One producer said this week that it had already swung “full force” into LPG cracking and was almost at the limit of its capability. Other operators were widely expected to have done the same, despite the obvious impact on the already snug propylene and butadiene markets. Following the contract settlements on Monday, naphtha prices strengthened and put naphtha cracker margins under further pressure. Most crackers were running at technical maximum where possible, continuing to be stimulated by the very healthy co-product markets. The NOC cracker based at Ras Lanuf, Libya, was believed to have been shut down around the weekend of 19-20 February, in response to the heightening tensions in the country. There was no indication when operations might be back to normal. Sources were of the opinion that the shutdown process had been ordered, however, rather than being an emergency stop. The FAO - ExxonMobil, Total Petrochemicals joint venture NC3 cracker at Antwerp in Belgium, was still offline. It had shut down a couple of weeks ago because of some technical problems, according to sources. Some players anticipated a restart by 1 March, but there was also talk which suggested a mid-March re-start. No details were confirmed. The cracker has the capacity to produce 600,000 tonnes/year of ethylene, according to ICIS data. The status of another of FAO’s Antwerp crackers, NC2, was unclear this week, but sources said that it was still offline. There were reports late last week that it had gone down on a technical issue. Talk of a propylene force majeure (FM) was not confirmed and no further details were available by the time of going to press. This cracker, which can produce 560,000 tonnes/year of ethylene, had been down for an extended period in Q4 of last year. Planned maintenance was imminent at DOW’s No 1 cracker in Terneuzen, the Netherlands and at SABIC’s Olefins 3 cracker based at Geleen, also in the Netherlands. The crackers both have the capacity to produce 590,000 tonnes/year of ethylene according to ICIS data. Refinery related/propane dehydrogenation unit (PDH) There was news that the PCK refinery FCC based at Schwedt in Germany had reduced rates and propylene supplies put on allocation because of the need to control gasoline stocks. Further details were not available and/or confirmed at the time of going to press. The BASF-Sonatrach Propanechem joint venture PDH unit in Tarragona, Spain was back online, sources said. The unit, which has the capacity to produce 350,000 tonnes/year propylene, was shut down around 6 February. Its main consumer at the site, LyondellBasell, was forced to declare force majeure (FM) on PP supplies. This PDH unit had been subject to extended maintenance in Q4 2010. Confirmation from Propanechem was not available by the time of going to press. The exact status of Borealis’s PDH at Antwerp, Belgium, which went into maintenance at the same time as the 480,000 tonnes/year splitter on 12 January, was unclear this week. It had been due to be back online by early March. The PDH has the capacity to produce 240,000 tonne/year of propylene, according to ICIS data.

Maintenance at Petroplus’ Ingolstadt refinery in Germany had been due to got under way 20 February and was due to last until the end of March, while a shutdown at Total’s Antwerp, Belgium, refinery FCC was also slated for March, market sources said. Repsol’s FCC at Huelva, Spain, would be undergoing maintenance in late February, early March, but this could not be confirmed. There was news that ENI’s Gela, Italy refinery and FCC would undergo maintenance from the end of February, but this could not be confirmed at the time of going to press.

SPOT PRICES C GRADE: Click for Price History FD NWE CIF NWE P GRADE: FD NWE CIF NWE Price Range EUR/TONNE +135 EUR/TONNE +50 EUR/TONNE +95 EUR/TONNE +135 1185-1200 1050-1100 1200-1250 1240-1250 Four weeks US CTS/LB ago +100 1050-1080 75.20-76.15 +20 950-1000 66.63-69.81 +130 +130 1105-1120 1090-1120 76.15-79.32 78.69-79.32

Spot market activity was again somewhat limited with little heard in the way of openly reported deals this week, however spot levels were indicated at record high levels this week. The late March contract settlement which only came out on Monday, and then some absences due to the ICIS Olefins conference and the EPL function were said to have played a part. The bullish outlook for propylene in the near to medium term meant that while there was good interest for spare tonnes, especially in the aftermath of the Libyan situation, other players were keeping a tight hold on volumes. The last Libyan 2,000 tonne propylene vessel was successfully loaded around 21 February, some sources reported, but tanks were now empty and the cracker was down. One or two traders were heard seeking coverage from European producers for lost Libyan volumes for any time between 3 months to a year which highlighted the uncertainty over developments in the region. Attempts were being made to cover the additional shorts with US and Asian volumes. Two 4-4,500 tonne polymer grade cargoes were booked ex-US and bound for Stade in Europe for late March, early April, sources said. Last week, there had been reports that the Happy Bee would load 7-9 March for Europe. Landed prices were indicated within a 1,240-1,250/tonne CIF NWE range.

On the inland sector, there was little news. Sources said that values would most likely be at a premium to the contract price, but the exact level would be determined only by timing and location. Similarly there was a dearth of fresh information regarding the chemical grade sector. Published spot prices have been adjusted upwards in line with general market sentiment. ($1 = 0.72) This week 04/03/11 02/03/11 28/02/11 28/02/11 28/02/11 on ICIS ( www.icis.com ) 13:13 Europe naphtha spikes above $1,000/t on firm crude, crack spread 14:49 SABIC PP output fully on stream at Geleen after maintenance 15:55 INEOS targets 100/tonne increase in Europe March polypropylene 15:33 Europe naphtha cracker margins drop 30% on upstream volatility 14:10 Europe March ethylene, propylene settle up

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4th March 2011

Propylene (US Gulf)
Editor William Lemos, william.lemos@icis.com CONTRACT PRICES Price Range n/c 70.00n/c 74.00 n/c 77.50n/c 77.50

Click for Price History C GRADE FEB P GRADE FEB

US CTS/LB US CTS/LB

One year ago 67.00-67.00 68.50-68.50

USD/MT 1543-1631 1709-1709

Click for Price History C GRADE P GRADE R GRADE

SPOT PRICES Price Range US CTS/LB +1.00 68.5069.00 US CTS/LB +0.50 70.0070.50 US CTS/LB +4.00 64.0067.75

+0.75 +0.50 +5.75

Four weeks ago 72.50-73.75 74.50-75.00 72.00-72.25

USD/MT 1510-1521 1543-1554 1411-1494

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Several US market participants have agreed to settle March polymer grade propylene (PGP) contracts at 72.5 cents/lb ($1,598/tonne, 1,151/tonne), a 5 cent drop from February, sources said during the week ended 4 March. Rising crude oil and gasoline prices, along with surging international propylene markets, lent support to US monomer prices and prevented a larger drop in March, sources said. A seller, concerned by rising refinery grade propylene (RGP) values, was still pushing for a higher price than the initial settlement, but market participants expected the settlements to hold. Contract assessments in the above table were left on February, pending confirmation of a full March settlement. Initial chemical grade propylene (CGP) settlements were heard at 71.0 cents/lb, down from 74.0 cents/lb in February. The CGP seller that settled separately at 70.0 cents/lb in February would move up to 71.0 cents/lb under the initial March settlement, sources said. In light of recent trends in crude oil and alkylation values, April contract expectations have taken on a stronger tone. Also, chemical propylene derivatives were at high enough prices that CGP endusers could afford to bid up PGP spot prices, adding further upward pressure to April contracts. In the polypropylene (PP) sector, buyers and sellers had cited expectations of a 5-10 cent/lb drop on March contracts. March PP demand was projected to remain below seasonal norms, but sales would be somewhat stronger than in January-February. A PP producer was optimistic that US

export volumes would pick up in March as buyers saw international prices approach parity with US offers. Spot RGP trading began the week with bids at 61.00 cents/lb and no offers. Prices quickly swung higher, with a number of deals heard in a range of 64.00-66.75 cents/lb for March delivery. No PGP or CGP spot business was confirmed, and prices were assessed slightly higher on a notional basis. In other regions, ex-US PGP was heard traded at around 1,240-1,250/tonne ($1,7221,736/tonne) CIF NWE for late March, early April delivery. The details were not yet confirmed. Spot propylene prices in NE Asia were at $1,500-1,550/tonne CFR on 4 March, underpinned by limited supply in the region. Production News A market participant said the industry had recovered from unplanned outages in February, but there were several planned maintenance turnarounds approaching. Dow Chemical restarted its 500,000 tonne/year Plaquemine 2 cracker in Louisiana this week, the company said. The unit resumed operations 3 March after being shut down for repairs on 16 February. Dow has two crackers in Plaquemine with combined ethylene capacity of 1.26m tonnes/year. LyondellBasell’s La Porte cracker in Texas is operating normally following its restart in February, the company said. LyondellBasell restarted the 789,000 tonne/year cracker during 18-19 February, but the unit had been running at reduced rates following an early February fire at feedstock supplier Enterprise Product’s natural gas liquids (NGL) plant in Mont Belvieu, Texas. This week, LyondellBasell said it has addressed logistical issues that were hindering operations after the Enterprise fire. A couple of minor production glitches were noted during the week. Chevron Phillips avoided a full shutdown at its Cedar Bayou cracker in Texas following a power outage in the Mont Belvieu area on 28 February. A minor amount of production was lost, according to market sources. It was unclear if other petrochemical plants in the area were affected. INEOS’ Chocolate Bayou 1 cracker in Texas reported flaring for 7 hours on 1 March related to an upset with the demethanizer tower.

US weekly non-fuel use propylene inventories – m bbl (EIA) 28 Jan 4 Feb 11 Feb 18 Feb 2.530 2.671 2.619 2.541

25 Feb 2.591

Percent operable utilisation at US refineries (EIA) 28 Jan 4 Feb 11 Feb 84.5 84.7 81.2

18 Feb 79.4

25 Feb 80.9

Non-fuel use propylene, as defined by the Energy Information Administration (EIA), is intended for petrochemical manufacturing including polymer- and chemical-grade propylene

Indicative Natural Gas Liquid (NGL) prices – Mont Belvieu, TX US$/gal Feb 11 Feb 18 Feb 25 Propane 1.31 1.37 1.54 Butane 1.68 1.78 1.83 Isobutane 1.81 1.92 1.87 Natural Gasoline 2.17 2.22 2.40 Ethane 0.65 0.67 0.68 NYMEX Closing Feb 11 Feb 18 Feb 25 Crude Oil 85.58 86.20 97.88

Mar 4 1.38 1.76 1.81 2.49 0.66 Mar 4 104.42

RBOB Natural Gas ($1 = 0.72)

2.46 3.91

2.55 3.87

2.73 4.00

3.05 3.81

Covering editor: David Barry (david.barry@icis.com) This week 03 Mar 11 03 Mar 11 03 Mar 11 03 Mar 11 02 Mar 11 on ICIS news ( www.icis.com ): 17:16 Plastics players reluctant to conclude business in North Africa 07:45 China’s Jingmen Petchem to restart Hubei PP plant on 20 March 05:24 Samsung Total to debottleneck Daesan cracker during turnaround 04:31 Saudi’s PetroRabigh to finalise expansion plans in April/May 23:10 Initial March settlements for US PGP fall 5 cents/lb

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.

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4th March 2011
Styrene
(Asia Pacific)
Editor Clive Ong, clive.ong@icis.com CONTRACT PRICES (IMPORT) Price Range USD/TONNE +53 1423-1457 +57 Click for Price History CFR N.E.ASIA FEB US CTS/LB 64.55-66.09

Click for Price History FOB KOREA * CFR N.E.ASIA * CFR S.E.ASIA * CFR CHINA * EAST CHINA EXTANK * FOB KOREA + CFR N.E. ASIA + CFR S.E. ASIA + CFR CHINA + EAST CHINA EXTANK +
NOTE:

SPOT PRICES Price Range USD/TONNE USD/TONNE USD/TONNE USD/TONNE CNY/TONNE -30 -30 -30 -30 -150 1420-1445 1400-1430 1410-1440 1400-1430 1057510625 1420-1465 1400-1455 1410-1465 1400-1455 1057510725 -30 -30 -30 -30 -150

Four weeks ago 1390-1405 1380-1410 1390-1420 1380-1415 10450-10500

US CTS/LB 64.41-65.54 63.50-64.86 63.96-65.32 63.50-64.86 72.99-73.33

USD/TONNE USD/TONNE USD/TONNE USD/TONNE CNY/TONNE

-20 -30 -30 -30 -150

-45 -35 -35 -35 -125

1220-1295 1220-1290 1230-1300 1370-1410 10400-10500

64.41-66.45 63.50-66.00 63.96-66.45 63.50-66.00 72.99-74.02

* = Price range at close of business Friday. + = Price range for the week.

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Deals heard this week: Monday: $1,445/tonne CFR China, LC 90 days, March $1,425/tonne, LC 90 days, bonded tank $1,430/tonne, LC 90 days, bonded tank Wednesday: $1,425/tonne, LC 90 days, bonded tank Thursday: $1,440/tonne, LC 90 days, bonded tank $1,430/tonne, LC 90 days, bonded tank Friday: $1,390/tonne, LC 90 days, bonded tank $1,405/tonne, LC 90 days, bonded tank $1,410/tonne, LC 90 days, bonded tank $1,445/tonne FOB Korea, LC sight, April Market summary:

Asian styrene monomer (SM) prices remained weighed down by large availabilities in the key Chinese market. Prices for prompt material like bonded tank parcels and March cargoes remained depressed by bulging inventories along the eastern Chinese shore tanks estimated at around 146,000 tonnes, little changed from last week. However, some initiatives by market players since last week appeared to have eased the overstock situation somewhat. A number of March arrival cargoes were said resold by buyers back to the suppliers. Anecdotal reports said some parcels were shipped back to Korea, Japan and Taiwan. Separately, some Chinese and Korean traders were heard buying up bonded tank parcels and shipping them out to Japan, Korea and possibly other Asian destinations. Presumably, these activities were expected to ease the downward price pressure at the front end of the market, which could then narrow the price gap between March and April cargoes. Similarly, the downdraft in import values in recent weeks could see some relieve in the near term and move towards parity or even premium over the FOB Korea numbers, reflecting a more ‘normal’ market condition. Meanwhile, with domestic prices in eastern China trading below yuan (CNY)10,700/tonne ex-tank for most part of the week, it is still cheaper to buy locally rather than to import, said traders. Meanwhile, the downstream styrenic resins demand remained mostly tepid, with some improvement expected only in the second quarter. Most factories were expected to ramp up production of finished goods for exports towards the middle of the year. Soaring energy futures this week, with the Nymex futures above $100/bbl and the Brent above $115/bbl, appeared to have little upward impact on SM numbers apart from possibly putting a floor somewhere at $1,400s/tonne. Spot Trade was thin this week with prices under downward pressure in the first half of the week. A fixture for a March cargo was heard at $1,445/tonne CFR China, LC 90 days. Bonded tank lots changed hands at $1,425-1,430/tonne, LC 90 days. Discussions for April parcels were cited at $1,450-1,470/tonne FOB Korea and $1,440-1,460/tonne CFR China, LC 90 days. In mid-week, a bonded tank lot was heard sold at $1,425/tonne, LC 90 days. Buying indications for April parcels were quoted at $1,440/tonne CFR China, LC 90 days, but sellers were not keen to meet these numbers. In the second half of the week, another bonded parcel was sold at $1,440/tonne, LC 90 days. However, players deemed the prices to be above the general market as several other offers for bonded tank cargoes were only at around $1,430/tonne, LC 90 days. On Friday, prices started to trend lower. Offers of April parcels declined to $1,450/tonne FOB Korea against buying indications at $1,420-1,435/tonne FOB Korea. Other selling indications were heard at $1,435-1,440/tonne CFR China, LC 90 days, for April lots. Discussions for bonded tank parcels slipped to $1,400/tonne, LC 90 days. Several bonded tank parcels were traded at $1,390-1,410/tonne, LC 90 days. Another fixture was heard at $1,445/tonne FOB Korea, any April lifting. Contract The northeast Asia contract price for February increased by $53-57/tonne to $1,423-1,457/tonne CFR, based on the average of spot prices over the month. Nihon Oxirane Co nominated its March contract price at $1,480/tonne CFR Asia, LC 30 days, up $80/tonne from its February nomination.

Production data Dohow Chemical plans to shut its 200,000 tonne/year SM unit in eastern China on 17 February due to a shortage of feedstock benzene. China’s Shandong Yuhuang shut its 200,000 tonne/year SM unit in northern China on 17 February. The unit is expected to be down for around 20 days of maintenance. Guangzhou Petrochemical plans to shut its 80,000 tonne/year SM unit in southern China this weekend for maintenance. The period of shutdown is expected to last around 36 days. Tianjin Dagu Petrochemicals plans to shut its 500,000 tonne/year SM unit in eastern China for maintenance in H1 March. The shutdown is expected to last around 40 days. Korea's YNCC shut its 285,000 tonne/year SM unit at Yeochon in late February, following an outage at its No1 cracker. The SM unit was restarted several days later. Korea’s LG Chem plans to shut its styrene plants in the second half of March for maintenance. The shutdown is expected to last around a month. The company operates a 200,000 tonne/year No1 and 300,000 tonne/year No2 unit in Yeochon and a 160,000 tonne/year unit in Daesan. Mitsubishi Chemical will exit the styrene business in mid-March, permanently shutting its 371,000 tonne/year SM plant in Kashima. ($1=CNY6.57) This week 04 Mar 11 04 Mar 11 04 Mar 11 03 Mar 11 03 Mar 11 in ICIS new ( www.icisnews.com): 07:24 Japan's Mitsubishi Chemical to close Kashima SM plant in March 04:22 China’s Yantai Wanhua to start up new complex in 2014 02:44 Japan’s Sumitomo Chemical to restart Jurong MMA line on 1 April 10:41 Azerbaijan's AzMeCo to build new methanol plant by end of 2011 09:27 Japan's Kuraray to shut PMMA plant for turnaround in Q2

FEEDSTOCK PRICES Click for Price History ETHYLENE (SP) BENZENE (SP) Price Range CFR N.E.ASIA USD/TONNE -10 CFR N.E.ASIA USD/TONNE n/c 1320-1350 1190-1205 -30 n/c

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ICIS pricing accepts no liability for commercial decisions based on the content of this report. For information about multiple subscriptions and licences to this information product, or for permission to photocopy or redistribute individual reports, please call the relevant office: London:+44 20 8652 3335, sales.uk@icis.com Houston:+1 713 525 2600, sales.us@icis.com Singapore:+65 6789 8828, sales.ap@icis.com Copyright violation is a Customer Support Centre serious offence. Any +44 20 8652 3335 or toll free distribution or forwarding of from US/Canada:+1 888 525 information which is not 3255 expressly permitted by your ICIS pricing: subscription agreement is a www.icispricing.com copyright violation. ICIS pricing ICIS News: www.icis.com/news will be using software to monitor ICIS website: unauthorised electronic www.icis.com redistribution of reports. Copyright 2011 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier

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4th March 2011

Styrene (Europe)
Editor Truong Mellor, Truong.Mellor@icis.com CONTRACT PRICES
Click for Price History Price Range US CTS/LB

FD BARGE NWE MAR FD TRUCK NWE MAR FCA RDAM MAR

EUR/TONNE EUR/TONNE EUR/TONNE

+31.00 +31.00 +18.00

1298.00-1359.00 +39.00 1323.00-1384.00 +39.00 1333.00-1333.00 +18.00

82.37-86.24 83.96-87.83 84.59-84.59

SPOT PRICES
Click for Price History Price Range Four weeks ago US CTS/LB

FOB RDAM MAR FOB RDAM MAR FOB RDAM MAR FOB RDAM APR FOB RDAM APR CIF RDAM MAR FCA RDAM (TRUCKS)

(*) (+) (#) (*) (+) (+)

USD/TONNE +40.00 USD/TONNE +10.00 USD/TONNE USD/TONNE USD/TONNE USD/TONNE n/c n/c n/c n/c

EUR/TONNE +5.00

1540.001550.00 1520.001543.00 1520.001550.00 1540.001550.00 1515.001540.00 1510.001533.00 1155.001200.00

+10.00 -37.00 n/c n/c n/c n/c +20.00

1410.001420.00 1415.001470.00 1410.001480.00 1420.001445.00 1420.001465.00 1405.001460.00 1085.001110.00

69.85-70.31 68.95-69.99 68.95-70.31 69.85-70.31 68.72-69.85 68.49-69.54 73.30-76.15

Note: (*)= Price range at close of business Friday. (+)=Price range for the week. (#)=Bid/offer range for the week. NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

European March styrene barge contracts were settled this week at 1,298-1,359/tonne FD NWE, up 18-39/tonne on the back of raw material costs, healthy demand and continued volatility of crude and energy numbers. The European March styrene customer reference price (CRP) has been agreed up by 18/tonne at 1,333/tonne FCA Rotterdam. The first March barge contract was agreed at 1,359/tonne, an increase of 39/tonne from the previous month. According to the producer, the increase was driven by higher raw material costs this month.

According to the seller, the 39/tonne increase reflects the current gains seen in the crude and energy markets, as opposed to the March settlements for benzene and ethylene, which settled a rollover and an increase of 60/tonne from February, respectively. A second barge contract was agreed at 1,298/tonne, up 31/tonne from February, as volatility in crude and energy futures kept upward pressure on the market. The third styrene barge contract was agreed at 1,328/tonne. According to the seller involved, the increase was driven by raw material costs for March, good demand and reduced imports into Europe. On the spot market, the week opened with March valued at $1,520-1,540/tonne FOB Rotterdam, and a deal was later done at $1,525/tonne. April was slightly backwardated, and a deal was seen later in the week at $1,515/tonne. The April market remained relatively quiet, as talk of imports arriving from China kept activity subdued. By mid-week, the range had moved up on the back of rising upstream values, and March traded at $1,533/tonne. Towards the end of the week, March moved up to $1,540-1,550/tonne. March traded twice at $1,543/tonne, and there was talk of a deal at $1,548/tonne although was unconfirmed. The weekly March range was $1,520-1,543/tonne FOB Rotterdam, based on confirmed deals seen in the market. The weekly range for April was $1,515-1,540/tonne. The lowest bid and highest offer for March was $1,520-1,550/tonne. Truck business was valued at 1,155-1,200/tonne FCA Rotterdam. The European March benzene contract has been confirmed at 1,001/tonne FOB NWE, unchanged from the February settlement in euro terms. The settlement was made at a US dollar concept of $1,378/tonne and converted to the euro price at the officially agreed exchange rate of 1 to $1.3766. Despite the ongoing buoyancy of crude futures, the market was expected to lengthen over the course of March and April due to significant volumes arriving to the ARA region from Asia. Spot values were at $1,370-1,390/tonne CIF ARA on Friday, up $30-40/tonne from the previous week’s close. The European March ethylene contract price settled on Monday, 28 February at 1,195/tonne FD NWE, up by 60/tonne from February. This was a more significant increase than had been originally anticipated because of the spike in crude and naphtha values on the back of the unrest in the Middle East. It was too early to determine what impact the higher contract number would have on derivative demand. Spot availability was balanced-to-tight as some unplanned outages were ongoing and scheduled maintenance was about to get under way. Spot prices were pegged at contract minimum on the pipeline and around $1,600/tonne CIF NWE and above at the coast. Polystyrene (PS) buyers were digesting the news from the styrene market and were again faced with increases in March. Several said that more hikes would have a detrimental effect on demand and continued to talk about substituting PS for other materials. At present, however, alternatives were expensive and in short supply. ($1=0.72) This week on ICIS ( www.icis.com ) : 04/03/2011 13:58 Europe March styrene CRP up 18/tonne, settles at 1,333/tonne 02/03/2011 13:41 Europe March benzene confirmed at 1,001/tonne 28/02/2011 15:33 Europe naphtha cracker margins drop 30% on upstream volatility

28/02/2011 14:34 Europe March ethylene, propylene settle up on higher oil, naphtha

FEEDSTOCK PRICES BENZENE (CP)
Click for Price History Price Range USD/GAL

FOB NWE MAR ETHYL BENZENE FOB NWE ETHYLENE (CP) FD NWEMAR

EUR/TONNE USD/TONNE

n/c -6.00

1001.00-1001.00 1382.00-1469.00

n/c -16.00 +60.00

4.66-4.66
US CTS/LB

62.69-66.63 75.83-75.83

EUR/TONNE +60.00 1195.00-1195.00

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4th March 2011

Styrene (US Gulf)
Editor Brian Balboa, brian.balboa@icis.com CONTRACT PRICES Price Range

Click for Price History FOB JAN

Four weeks ago US CTS/LB +4.50 72.50-75.50 +4.50 68.00-71.00

USD/MT 1598.351664.49

Click for Price History + FOB EXPORT * FOB EXPORT

Four weeks ago US CTS/LB +0.50 67.75-71.25 +3.00 63.00-67.75 US CTS/LB +3.00 70.75-71.25 +3.00 67.25-67.75

SPOT PRICES Price Range

USD/MT 1493.631570.79 1559.771570.79

+ Price range for the week * Price range at close of business Friday NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Market Summary US styrene monomer (SM) spot and contract prices were on an upward trend during the week ended 4 March. The jump comes alongside stronger feedstock and crude values, and reportedly tight supplies. Spot levels began the week at 67.75-68.25 cents/lb ($1,494-1,505/tonne, 1,076-1,084/tonne) FOB. Prices gradually moved higher with spot levels heard done at 70.00 cents/lb FOB and 71 cents/lb FOB early in the week. With spot levels over 70 cents/lb, the US became the most expensive region in the world for styrene. Also during the week, North American styrene producers said during the week that they have settled February contracts at increases of 5-8 cents/lb, following the recent surge in feedstock benzene prices. Buyers have not yet confirmed any increases, but if successful. the increase would take February contract prices to 77.50–83.50 cents/lb FOB. Styrene producers previously nominated February contract price increases of 7–9 cents/lb. Sources said styrene producers were already looking to move March styrene contracts up another 3-6 cents/lb. No producers have confirmed any nominations yet for March.

One contract participant said a March increase would likely be on the lower end of a 3-6 cents/lb nomination, based on a lower than expected settlement in the March benzene contract. US March benzene contracts settled up by 4 cents/gal from February at $4.39/gal, marking the third consecutive monthly increase. Production News INEOS Styrenics said last week it will be taking down its 770,000 tonne/year Bayport styrene plant in Texas during May and June for scheduled maintenance. The dates of the downtime were not disclosed. Industry News INEOS confirmed on Tuesday it completed the purchase of NOVA Chemical’s interest in the 50:50 INEOS NOVA joint venture (JV), making it a wholly owned business within the INEOS Group. As part of the transaction, which was completed on 28 February, INEOS said it is changing the name of the business to INEOS Styrenics. On 31 October 2010, an agreement between the two companies provided for the total acquisition by INEOS of Nova’s equity interest in the JV. Overseas In Asia, styrene prices were still weighed down on large availabilities in the Chinese market. Inventory along the eastern Chinese short tanks were estimated at around 146,000 tonnes, little changed from a week earlier. In Europe, March styrene barge contracts settled up 18-39/tonne to 1,298-1,359/tonne FD NWE, on the back of raw material costs, healthy demand and continued volatility of crude and energy numbers.

($1 = 0.72) This week on ICIS ( www.icis.com ): 03/03/2011 17:41 Initial N America February styrene contracts rise 5-8 cents/lb 02/03/2011 00:23 Total, Koch end US MX contract arrangement - sources 01/03/2011 23:08 Two US aromatic solvent producers seek 5, 6 cent/lb hikes 01/03/2011 08:50 Guangxi Petrochemical to restart aromatics unit on 6 March 28/02/2011 12:09 JX Nippon Oil ups March benzene ACP settlement by $60/tonne

Click for Price History ETHYLENE (Net CP)

DELIVERED FEB

FEEDSTOCK PRICES Price Range US +3.75 49.00 CTS/LB FEEDSTOCK PRICES Price Range USD/GAL +0.04 4.39-4.39 US +1.50 61.00CTS/LB 63.00

One Year ago 49.00

USD/MT 1080.26

Click for Price History BENZENE (CP) FOB MAR ETHYL BENZ (SP) FOB USG

+0.04 +1.50

Four weeks ago 4.35-4.35 53.25-55.25

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4th March 2011

Terephthalic Acid
(Asia)
Editor Becky Zhang, becky.zhang@icis.com CONTRACT PRICES Price Range USD/MT +175 USD/MT +175 1325-1335 1345-1353 +175 +173 Click for Price History DEL TAIWAN JAN CFR CHINA JAN DELIVERED CHINA FEB One year ago 930-940 935-940 8150.008150.00 US CTS/LB 60.10-60.55 61.01-61.37 82.48-82.48

CNY/MT +1200 11950-11950 +1200 SPOT PRICES Price Range USD/MT +33 USD/MT +35 1490-1515 1505-1515 +40 +40

Click for Price History CFR CHINA MAIN PORT CFR CHINA MAIN PORT (exempted from ADD) CFR CHINA MAIN PORT (subject to ADD up to 3.7%) EX-WAREHOUSE CHINA CFR INDIA MAIN PORT

One year ago 930-955 n/a-n/a

US CTS/LB 67.58-68.72 68.27-68.72

USD/MT +33

1490-1500

+33

n/a-n/a 7900-8050 940-945

67.58-68.04 79.37-81.10 69.85-70.31

CNY/MT +200 11500-11750 +150 USD/MT +30 1540-1550 +30

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Market Summary Asian purified terephthalic acid (PTA) prices firmed by $33-40/tonne this week, mainly bolstered by bullish PTA futures traded on the Zhengzhou Commodity Exchange. Snug spot supplies across the region and continued buying interest from end-users lent additional support to prices. Market observers noted that there remained buying enquiries from Chinese end-users despite surging prices. The

recent strong exports to southeast Asia, in particular for China’s polyester staple fibre (PSF), boosted demand from export-oriented end-users for US dollar PTA cargoes. Meanwhile, spot supplies from Korea and Taiwan were tightened due to strong demand from markets outside of China, such as Europe and India. Buyers in these markets paid premiums against China prices to grab cargoes, in a bid to cover short positions as a result of plant shutdowns and growing demand. The outlook for PTA remained positive, with expectations of improving polyester demand as the April-May peak season approached. At the same time, many believed that a close monitoring of PTA futures was necessary as it decided short-term market trends. Indian import market In India, trade for imported PTA was subdued by a growing gap between buy-sell indications. Stable operations at local PTA plants satisfied most local demand, providing buffer for end-users. Offers for northeast Asia cargoes were heard to have increased to $1,550-1,560/tonne CFR India Main Port, in line with firmer Chinese prices. This was countered by buying notions from end-users at $1,530-1,540/tonne CFR India Main Port. No deals could be located during the week as most buyers were in no hurry to book material amid volatile Chinese prices. Chinese import market The Asia PTA market opened the week on a bullish note on the back of strong rebounds in PTA futures. Offers for Taiwanese cargoes jumped by $20-25/tonne from last Friday to reach $1,500/tonne CFR CMP, after a deal was reported to have been fixed at $1,490/tonne CFR CMP on Monday morning. Buyers were mostly bidding at $1,480-1,485/tonne CFR CMP, with two deals heard traded at $1,485/tonne CFR CMP and $1,495/tonne CFR CMP, respectively, during the day. Offers continued to climb on Tuesday to $1,510-1,515/tonne CFR CMP, against bids at $1,500/tonne CFR CMP. Transactions were reported to have been concluded at $1,510/tonne CFR CMP, $1,505/tonne CFR CMP, and $1,500/tonne CFR CMP during the day, although these could not be confirmed. The week’s upturn took a break on Wednesday amid fluctuating PTA futures. Offers were pegged at $1,510-1,520/tonne CFR CMP against bids mostly heard at $1,500/tonne CFR CMP. A late March arrival cargo was heard traded at $1,500/tonne CFR CMP in the late morning, while a second March cargo was heard to have been sold by a trader at $1,510/tonne in the afternoon. A bullish opening of PTA futures on Thursday morning pushed up offers to $1,530/tonne CFR CMP. A trader reported selling a March cargo at $1,525/tonne CFR CMP in the morning, inclusive of a small commission fee. Two other late March delivery parcels were heard fixed at $1,520/tonne CFR CMP in the early afternoon. Offers softened to $1,520/tonne CFR CMP towards the close of the day, with a bonded warehouse cargo heard changing hands at $1,515/tonne CFR CMP. A 2% drop in PTA futures pushed discussion levels down to $1,505-1,510/tonne CFR CMP on Friday. A just-arrived cargo was heard changing hands between two traders at $1,505/tonne CFR CMP in the afternoon, meanwhile offers at $1,510/tonne CFR CMP for a late March arrival cargo attracted few buyers. Discussions for Korea material, which subject to anti-dumping duties of up to 3.7%, were muted throughout the week. Sellers were mostly holding back offers, on the expectation of higher buying ideas from export-oriented end-users, who were hesitant to take positions at the current prices. Bids rose to $1,490-1,495/tonne CFR CMP late this week, from $1,470/tonne CFR CMP on Monday. Selling indications, however, escalated to $1,500-1,510/tonne CFR CMP towards the close of the week, attracting few buyers. A handful of deals could be located during the week. One was concluded on Tuesday at $1,495/tonne CFR CMP for a bonded warehouse cargo, and the second parcel was for mid-March arrival changed hands on Wednesday at $1,500/tonne CFR CMP (inclusive of a small commission

fee) between a trader and an end-user. A third was heard booked by another end-user at around $1,495/tonne CFR CMP at mid-week. Bid-offer levels fell on Friday in tandem with weaker PTA futures. However, bids at $1,4901,495/tonne CFR CMP failed to secure cargoes as sellers stood by offers at above $1,500/tonne CFR CMP due to limited availability. Downstream demand The sales-to-output ratio at most Chinese polyester fibre and yarn plants jumped to 150-180% on Monday, driven by the bullish opening of PTA futures. It softened to 50-80% in the following two days, but recovered to 100-130% towards the close of the week despite weaker PTA futures and spot feedstock prices. Downstream textile factories were forced to return to the market after a month-long silence, to replenish depleted inventories, several major polyester makers said. A majority of textile plants had resumed production in early March after the Lunar New Year celebrations, a specialist in the textile industry said. This was clearly shown in the transaction volumes at the benchmark China Textile City in Shaoxing, which rose steadily to 3.7m metres/day on Friday from last week’s 3m metres/day. The volumes, however, were still below the normal range of 4m-6m metres/day in 2010. Margins for partially oriented yarn (POY) 150D/48F, a typical yarn grade, and PSF remained largely stable at around yuan (CNY) 400-600/tonne and CNY600-800/tonne, respectively, on the back of a steady increase in downstream demand. Contract In China, January contracts (exempted from anti-dumping duties) were finalised at around $1,345-1,353/tonne CFR China, a sharp increase of $173-175/tonne from December contract prices. Nominations for February contracts were proposed at $1,470-1,475/tonne CFR China. PTA contract settlement (exempted from ADD) in 2011, CFR China, in USD Month List prices Month list prices Jan 1345-1353 JUL Feb AUG Mar SEP Apr OCT May NOV Jun DEC PTA contract settlement (exempted from ADD) in 2010, CFR China, in USD Month List prices Month list prices Jan 950-955 JUL 850-851 Feb 955-960 AUG 880-885 Mar 955-960 SEP 907-915 Apr 985-990 OCT 1022-1040 May 900-905 NOV 1165-1180 Jun 845-850 DEC 1170-1180 In Taiwan, January contracts were concluded around $1,325-1,335/tonne DEL Taiwan, a significant jump of $175/tonne from their December levels, confirmed with major Taiwanese producers. Taiwan local PTA contract settlement in 2011, delivered Taiwan, in USD Month List prices Month list prices Jan 1325-1335 JUL Feb AUG Mar SEP Apr OCT

May Jun

NOV DEC

Taiwan local PTA contract settlement in 2010, delivered Taiwan, in USD Month List prices Month list prices Jan 930-940 JUL 830-840 Feb 935-945 AUG 860-870 Mar 940-950 SEP 885-890 Apr 965-970 OCT 995-1000 May 870-875 NOV 1135-1150 Jun 830-840 DEC 1150-1160 In the Chinese domestic market, February contracts were settled at CNY11,950/tonne DEL, another sharp increase of CNY1,200/tonne from January numbers, after a steep hike of CNY1,150/tonne in January. March nominations were proposed at CNY12,000/tonne DEL. Chinese domestic PTA contract settlement in 2011, delivered China, in yuan Month List prices Month list prices Jan 10750 JUL Feb 11950 AUG Mar SEP Apr OCT May NOV Jun DEC Production news Taiwan’s Oriental Petrochemical plans a one-week shutdown at its 400,000 tonne/year T9 PTA plant at Kuan Yin, Taoyuan, on 17-26 March. The company said it will guarantee supplies to its contracted customers through spot purchasing and stocks. China’s Zhejiang Yuandong Chemical Fibre Group shut its 600,000 tonne/year No 1 EPTA plant in Shaoxing, Zhejiang province on 2 March for 25 days of scheduled maintenance. The company’s two other PTA plants were slated to come offline in April and May for a two-week shutdown each. The company had informed its customers of a 50% commitment of contract volumes during the period. China’s Formosa Chemical Fiber Corp (FCFC) expects to shut its 800,000 tonne/year Ningbo plant for three to four days of minor maintenance in early March. China’s Yisheng Petrochemical plans to shut one of its two 650,000 tonne/year PTA plants at Ningbo, in Zhejiang province, in March for one week of maintenance. China’s Tianjin Petrochemical, a subsidiary of Sinopec in northern China’s Tianjin city, shut its 350,000 tonne/year PTA plant late last week for month-long maintenance. ($1 = CNY6.57) This week 04 Mar 11 04 Mar 11 04 Mar 11 03 Mar 11 03 Mar 11 in ICIS news ( www.icis.com) 08:54 Taiwan’s Oriental Petrochemical plans one-week PTA shutdown 08:06 China’s Zhejiang Yuandong Chemical Fibre shuts No 1 plant 07:18 Asia PET at 16-year high on rising feedstock prices - source 05:18 FocusAsia naphtha backwardation widens on lower deep-sea flows 19:20 US PET producers seek 7 cent/lb price hikes for March

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