Price trends of oil, polymer feedstocks & commodity polymers for the week of 14th May 2007

SUMMARY While oil declined to US $ 62-63/barrel in the week of 14th May 2007 most of feedstocks with the exception of propylene & EDC increased in price. This coupled with stronger demand increased prices of all commodity polymers with the exception of GPPS. For the rest of May 2007 no relief is expected. Most of polymers will remain stronger. OIL Oil has lost its steam & declined to US $ 62-63/barrel in the week of 14th May 2007.It seems that there is sufficient inventory in USA. However it is temporary. It definitely will rise again & will remain around US $ 65/barrel in the remaining weeks of May 2007 NAPHTHA Due to increase demand of its downstream products, naphtha sharply increased to US $ 710-715/MT in the week of 14th May 2007. It is likely to remain stronger in the remaining part of May 2007 ETHYLENE Higher demand of PE has helped in price rise. The price sharply increased to US $ 1150/MT in the week of 14th May 2007. It is expected that it will remain around US $ 1140-1160/MT in the remaining weeks of May 2007. PROPYLENE While ethylene gained smartly, propylene remained stagnant at US $ 1100/MT in the week of 14th May 2007. It is likely to move sideways around US $ 1100/MT in the rest of May 2007. EDC EDC also moved in a narrow range around US $ 380-400/MT in the week of 14th May 2007 due to lackluster market conditions. It will remain stagnant around US $ 400/MT in the rest of May 2007. VCM VCM hardened due to revival of PVC business to some extent & rose to US $ 730/MT in the week of 14th May 2007. It is likely to remain stronger at about US $ 725/MT in the rest of May 2007. STYRENE Styrene on account of higher price of ethylene increased to US $ 1350/MT in the week of 14th May 2007. It is expected to remain around US $ 1330-1350/MT in the rest of May 2007. LDPE Higher demand from Asia & particularly from China increased to US $ 1350-1360/MT in the 14th May 2007 week. It will remain stronger around US $ 1350/MT in the rest of May 2007. LLDPE LLDPE like LDPE also gained & reached US $ 1290-1300/MT in the week of 14th May 2007. It is expected to remain around US $ 1300/MT in the rest of May 2007. HDPE Global demand caused the price to increase to US $ 1300/MT in the week of 14th May 2007 HDPE will remain around US $ 1280-1300/MT in the rest of May 2007 PP PP like PE has increased to US $ 1275/MT in the week of 14th May 2007. It will remain around US $ 1270-1280/MT in the rest of May 2007 about US $ 940/MT. PVC Bright market sentiments & increased price of VCM made PVC to rise at about US $ 730-740/ to US $ 930-950/MT. For the rest of May 2007 it will remain bullish at US $ 940-950/MT. GPPS GPPS on account of subdued demand around all parts of Asia remained stagnant around US $ 1410-1420/MT in the week of 14th May 2007. It is likely to remain range bound at about US $ 1400/MT in the rest of May 2007. ABS A stronger market demand in China has increased the price to US $ 1630-1640/MT in the week of 14th May 2007. It will remain around US $ 1640/MT in the rest of May 2007.