Price trends of oil, polymer feedstocks & commodity polymers for the week of 9th July 2007

SUMMARY Oil prices surged to ten month highs at US$72.8/barrel due concerns over the unrest in Nigeria and a supply restriction caused by unexpected refinery closures coupled with strong demand for fuel ahead of the conventional high demand summer season. Naphtha increased in line of strong crude Ethylene and propylene also increased corresponding to an increase in the price of oil. EDC was stronger on robust market, VCM remained stagnant. Styrene monomer (SM) was at a lower price compared to the last week as price of downstream GPPS mellowed. Market for LLDPE and HDPE was robust this week, while LDPE market stagnated. PP prices saw an upward movement on the back of supply restrictions. PVC prices stagnated at last week's level. GPPS dipped on account of lackluster demand while ABS prices stagnated. CRUDE OIL Crude oil price spiked to it's highest level in ten months - rising to US$72.81, in the week of 9th July 2007. Concerns over the unrest in Nigeria and a supply restriction caused by unexpected refinery closures due to maintenance of a North Sea oil field have triggered this rise. NAPHTHA Robust Asian naphtha market remained firm on the back of strong crude oil prices, rising to levels of US$704/mt in the week of 9th July 2007. POLYMER FEEDSTOCK ETHYLENE Robust crude prices and strong prices of all polyethylenes led to a recovery in ethylene prices in the week of 9th July 2007. Ethylene price rose to US$1,060/MT and is anticipated to remain in the price range around US$1,100/mt. Prices are expected to strengthen in the next few months due to an anticipated supply limitation as major suppliers prepare for scheduled maintenance shutdown. PROPYLENE A strong market for downstream polypropylene and other buoyant market conditions have supported a propylene price increase. Prices ranged at levels of US$1020/MTin the week of 9th July 2007. Prices are expected to remain in this range in the month of July, as buying activity seems to be gaining momentum. EDC EDC prices rose marginally to US$430-440 in the week of 9th July 2007 in line with growing demand. Prices are expected to rise by US20-30/MT in the rest of July 2007. VCM A lull in downstream PVC markets has caused VCM prices to stagnate at last weeks' price level of around US$820/MT in the week of 9th July 2007. STYRENE MONOMER (SM) Robust increase in demand and a rise in feedstock benzene prices has led to a price increase for styrene. Prices rose to levels of US$1390/MT in the week of 9th July 2007. POLYMERS LDPE Steady demand has maintained the price of LDPE at last weeks' level of US$1460/MT. July 2007 future appears to show that the price could be higher at US$1480-1500/MT. LLDPE Asian LLDPE prices gained to US$1380/MT level in the week of 9th July 2007. Prices in July 2007 could steady in the price band of US$1370-1380/MT. HDPE Robust buying activity saw HDPE prices surge to levels of US$1375/mt in the week of 9th July 2007. Prices are expected to sustain at this level for the rest of July. PP Stringent supply has helped PP spike to levels of US$1365-1370/MT in the week of 9th July 2007. Prices are expected to be in a higher price range of US$1350-1370 in the month of July. PVC Stringent supplies along with upbeat demand have maintained stability in PVC prices at US$980-990/MT in the week of 9th July 2007. Prices are expected to rise in the coming weeks on the back of healthy demand. GPPS Lackluster demand from China has kept GPPS prices somewhat soft at around US$1480/MT in the week of 9th July 2007. As buying interest waned, Asian PS prices continued to fall in the week. It is expected that GPPS would remain in the range below US$1500/MT in July 2007. ABS ABS prices have stagnated due to lack of buying activity at US$1660/MT in the week of 9th July 2007. ABS prices are expected to keep in this lower price range in the month of July 2007.