Price trends of oil, polymer feedstock and commodity polymers in Asia for the week ended March 30, 2009

CRUDE OIL At the end of the week of March 30, 2009, New York's main futures contract, light sweet crude for delivery in May dipped by over a dollar to US$51.25 a barrel, while Brent North Sea crude fell to US$51. Oil futures have dipped on concerns of short-term performance of the equity markets, as US share prices fell at end of week on worries that the worst may not be over for the economy. Another factor responsible for the fall in crude values this week has been the strengthening of the dollar vis a vis the euro on data that the recession is intensifying in Europe. A stronger dollar makes commodities less attractive as an alternative investment. NAPHTHA In the week of March 30, 2009, naphtha prices continue to rise in line with rising oil prices in Asia, coupled with robust downstream demand in the region. Open-spec prices for H1-May shipment spiked by over 30 dollars to US$475/MT CNF Japan. ETHYLENE Sustained by rising oil and naphtha values as well as optimistic derivative polyethylene markets, ethylene prices continue to be north bound in Asia this week. Prices have risen to US$630/MT in Asia the week of March 30, 2009, on continuing supply constraints in the continent. Despite the restart of Shanghai SECCO's 900,000 tpa cracker, markets of Asia are short supplied as limited material is being offered by sellers. This is because, encouraged by the fresh rise in polyethylene prices, most South Korean producers are currently using ethylene for captive consumption. Another factor contributing to supply constraints is the unexpected shutdown of Iran's Marun Petrochemical's 1,100000 tpa cracker which will delay ethylene shipments into the region. PROPYLENE Despite the restart of Shanghai SECCO's 900,000 tpa cracker, the region seems to be facing a production deficit. The supply dearth has propelled FOB Korea propylene prices to US$800/MT in Asia in the week of March 30, 2009, against sellers offers about twenty dollars higher. STYRENE MONOMER Under pressure from dual forces of increased feedstock costs and buoyant downstream demand, styrene monomer prices have risen by over fifty dollars to US$915/MT in Asia in the week of in the week of March 30, 2009. FOB Korea seller's offers for May shipment were heard at US$920-925/MT, with buying bids rising, but keeping about 10 dollars lower. Driven by optimistic outlook in markets of USA and Europe, feedstock benzene FOB Korea prices have spiked by over $110 to US$580/MT in Asia this week. VCM Last week's dip in VCM prices has been arrested this week, with CFR China prices for next month shipment stagnating at US$570/MT in Asia in the week of March 30, 2009. EDC As avail constraints continue in the continent, a hike persists in EDC prices. Prices have risen to US$275/MT in Asia in the week of March 30, 2009, with few offers heard at the 300 dollar mark. As buyers are reluctant to procure material at these levels, deal conclusion has been successful at US$265-280/MT CFR Asia. POLYMERS HDPE Shanghai SECCO's unplanned shutdown at it's 900,000 tpa naphtha cracker due to mechanical glitches had led to a shortfall of feedstock ethylene causing a sudden outage of Shanghai SECCO's 650,000 tpa HDPE plant. The resultant supply scarcity continued the unrelenting hike in CFR China HDPE prices for April shipment to US$1025/MT in Asia in the week of March 30, 2009. LDPE LDPE prices have moved up to US$1025/MT for April shipment in Asia in the week of March 30, 2009, as restricted supplies have caused most Asian suppliers to hold firm offers. As supplies are expected to be tight in the region, most sellers have withheld offers in anticipation of better price realization later. A dearth of offers has kept deal conclusion muted in the week. LLDPE Propped by rising ethylene values, LLDPE prices have increased to US$1025/MT in tandem with rising HDPE values in Asia in the week of March 30, 2009. Most key sellers have raised CFR China offers for April/early May shipment to US$1035-1050/MT, while offers from Taiwan hover around US$1045/MT. POLYPROPYLENE Driven by dual forces of rising feedstock values and restricted supplies, polypropylene prices have risen by about $90 to US$975/MT in Asia in the week of March 30, 2009. CFR China offers from Taiwan were heard above US$1000/MT, from India at US$945/MT, while offers from South Korea are awaited. POLYVINYL CHLORIDE Polyvinyl Chloride prices stabilized at US$670/MT CFR China in Asia in the week of March 30, 2009 for April shipment. CFR China offers from sellers of Japan, Taiwan and South Korea ranged at US$660-685/MT. GPPS Mounting feedstock styrene monomer values have spiked April shipment GPPS prices to US$1015/MT in Asia in the week of March 30, 2009. Another factor that has taken GPPS prices past the thousand dollar mark is upbeat outlook amid restricted supplies. After conclusion of April shipment deals at this level, numerous suppliers have put off offers. ABS As rising input costs take a toll on production costs, ABS prices have risen in Asia. Prices have spiked past US$1300/MT in the week of March 30, 2009 in line with increased production costs as well as sturdy demand. In fact, May cargoes from South Korea and Taiwan were heard at US$1350/MT levels.