Price trends of oil, polymer feedstock and commodity polymers in Asia for the week ended February 16, 2009

CRUDE OIL Crude oil prices have dipped to US$37.5 in the week of February 16, 2009 from last week’s levels of US$39.6. A larger than expected increase in stockpiles in USA has sunk prices as it now seems that supplies will continue to overshadow demand as the global meltdown seems to be continuing. NAPHTHA Naphtha prices in Asia have swayed in sync with weakening crude oil, falling to US$445 levels in the week of February 16, 2009. Open-spec naphtha prices closed down at US$445/MT CNF Japan for H2-March delivery. ETHYLENE Markets were lackluster in the absence of any movement from both buyers and sellers, stagnating ethylene prices at US$655/MT in Asia in the week of February 16, 2009. Restrained downstream demand in the continent in anticipation of March delivery cargoes being loaded from Libya and Iran have kept price movement restricted. PROPYLENE Propylene prices have moved up to US$680/MT in Asia in the week of February 16, 2009. But recent market developments indicating that demand from China is beginning to lose its vigor, could affect prices in the forthcoming weeks. VCM Driven by robust downstream PVC markets, CFR China VCM prices in Asia have spiked up to US$600/MT in Asia in the week of February 16, 2009. Offers for March have been raised by about twenty dollars, and await acceptance by the buyers. EDC Restricted supplies resulting out of reduced run rates on account of sluggish caustic soda sales have pushed EDC prices to US$200/MT in Asia in the week of February 16, 2009. Seller’s offers have been heard almost 40-50 dollars higher, as buying sentiments perked up in line with recovering feedstock ethylene values and robust derivative markets. STYRENE MONOMER Styrene Monomer prices in Asia have risen to US$725/MT in the week of February 16, 2009 in line with rising feedstock benzene prices. Benzene prices have risen to US$450/MT, with offers for April shipment rising by an additional ten dollars. POLYMERS HDPE As supplies in the region continue to be restricted, HDPE prices moved up to US$975/MT in the week of February 16, 2009. After successful conclusion of CFR China deals at these levels, offers for film grade have been hiked by an additional 40 dollars from South Korea and about 20 dollars from Taiwan. LDPE As demand from China advances, LDPE prices have increased to US$980/MT in Asia in the week of February 16, 2009, even as the market awaits offers for March shipment. LLDPE As demand from China improves, LLDPE prices have moved up to US$995/MT in Asia in the week of February 16, 2009. After successful conclusion of deals at these levels, offers have been hiked by another 20 dollars for March. POLYPROPYLENE Robust demand from China has pushed up CFR China polypropylene prices past US$900 mark in the week of February 16, 2009. After successful conclusion of deals at these levels by Chinese buyers restocking inventories, offers have been hiked by an additional 20-25 dollars. POLY VINYL CHLORIDE CFR China offers for March shipment PVC have shot up to US$695/MT in Asia in the week of February 16, 2009. As feedstock costs continue to be on an uptrend, buying intentions have also revved up in line with increased offers. GPPS As input SM costs rise, GPPS prices have moved past US$800/MT in Asia in the week of February 16, 2009. Propped by robust input costs, most sellers have hiked CFR China offers to levels of US$805-825/MT despite yet to pick up downstream demand. ABS As feedstock costs rise, ABS offers have also been hiked to hover around US$1100/MT in Asia in the week of February 16, 2009. Offers from South Korea as well as Taiwan have been hiked by a further 15-20 dollars after successful conclusion of deals at these levels.