Po 20140910

[PETROCHEMICALS ]
www.platts.com
POLYMERSCAN
Now online at pmc.platts.com Volume 37 / Issue 36 / September 10, 2014
Americas Polymer Spot Price Assessments

FAS Houston US Contract US Domestic FOT Brazil* CFR Brazil CFR PERU
($/mt) dlvd railcar ($/mt) ($/mt) ($/mt) ($/mt)
(cts/lb)
PVC SUSP 930-940 62.00-64.00 1366.48 -1410.56 —- 1065-1075 1030-1040

LDPE G-P 1764-1786 92.00-93.00 2027.68 -2049.72 1840-1850 1800-1810 1800-1810
LLDPE (Butene) 1698-1720 79.00-80.00 1741.16 -1763.20 1790-1800 1770-1780 1765-1775

HDPE Inj 1709-1731 83.00-84.00 1829.32 -1851.36 1780-1790 1730-1740 1745-1755
Bmldg 1698-1720 83.00-84.00 1829.32 -1851.36 1780-1790 1730-1740 1745-1755
Film 1720-1742 86.00-87.00 1895.44 -1917.48 1780-1790 1750-1760 1765-1775
Yarn —- —- —-

PP Homo Inj 1753-1775 82.50-83.50 1818.30 -1840.34 1655-1665 1690-1700 1690-1700
Fiber —- 83.50-84.50 1840.34 -1862.38 —- —- —-
Copol 1775-1797 —- 1695-1705 1740-1750 1740-1750
IPP Film
BOPP

PS G-P 1990-2000 126.00-128.00 2777.04 -2821.12 —-
HIPS 2090-2100 136.00-138.00 2997.44 -3041.52 —-
ABS Inj —- 122.00-124.00 2688.88 -2732.96 —-

PET bottle grade 1554-1576# 1940-1962##
Notes: All price assessments reflect spot trades with the exception of US Contract Delivered railcar. * FOT Brazil assessments are for export material via truck to MERCOSUR markets. # US PET bottle
grade refers to DDP US West Coast. ## US PET contract price is in $/mt.
Asian Polymer Spot Price Assessments Contents

CFR FE Asia CFR SE Asia CFR China Polymers
($/mt) ($/mt) South Asia Domestic
($/mt) (Yuan/mt) Polyvinyl Chloride 4
PVC SUSP 1042-1044 1037-1039 1069-1071 ^6940-6960 Low Density Polyethylene 5
^^5940-5960 Linear Low Density Polyethylene 6
High-Density Polyethylene 7
LDPE G-P 1579-1581 1599-1601 —- 12230-12270 Polypropylene 9
LLDPE (Butene) 1549-1551 1594-1596 1649-1651 11280-11320 Polystyrene 10
Acrylonitrile Butadiene Styrene 12
HDPE Inj 1519-1521 1584-1586 1639-1641 —-
Polyethylene Terephthalate 12
Bmldg 1549-1551 1584-1586 1639-1641 —-
Film 1574-1576 1604-1606 1649-1651 12180-12220 Polymer Feedstocks: Olefins
Yarn 1589-1591 1634-1636 —- —-

Ethylene 16
PP Raffia 1499-1501 1524-1526 1559-1561 11280-11320 Ethylene Glycol 17
PP Injection 1489-1491 1519-1521 1559-1561 —- Propylene 18
Fiber —- —- Butadiene 19
Copol 1609-1611 1614-1616 1614-1616 —-
IPP Film 1519-1521 1564-1566 1604-1606 —- Polymer Feedstocks: Aromatics
BOPP 1514-1516 1559-1561 1584-1586 —- Paraxylene 22
Styrene 23
PS G-P 1639-1641 1659-1661 —- —-
HIPS 1704-1706 1739-1741 —- —- Polymer Feedstocks: Intermediates
EPS G-P 1674-1676* Purified Terephthalic Acid 25
EPS F-R 1724-1726* Acrylonitrile 26
ABS Inj 1924-1926 1934-1936 —- —-
Ethylene Dichloride /
Vinyl Chloride Monomer 26
PET bottle grade 1289-1291 * 1339-1341 ** —- —-
Notes: Asian PVC, PS, and ABS, FE Asia refers to China. All Asian polymer assessments are basis L/C 0-30 days Credit differentials News
27
calculated using 1 month LIBOR +1.5%. ^Denotes ethylene-based production ^^Denotes carbide-based production. EPS F-R refers
to fire retardant grade. *Denotes FOB North East Asia (South Korea, China, Japan) **Denotes FOB Southeast Asia (Thailand,
Indonesia , Vietnam, Malaysia).
PLATTS POLYMERSCAN September 10, 2014
Daily Polymer Spot Price Assessments

Thursday Friday Monday Tuesday Wednesday Average
CFR FE Asia ($/mt)
HDPE film 1579-1581 1589-1591 1589-1591 1579-1581 1574-1576 1582.00-1584.00
LDPE 1579-1581 1579-1581 1579-1581 1579-1581 1579-1581 1579.00-1581.00
LLDPE 1554-1556 1554-1556 1554-1556 1549-1551 1549-1551 1552.00-1554.00
PP Raffia 1499-1501 1499-1501 1499-1501 1504-1506 1499-1501 1500.00-1502.00
PP Injection 1489-1491 1489-1491 1489-1491 1489-1491 1489-1491 1489.00-1491.00
FD NWE (Euro/mt)
LDPE 1278-1282 1278-1282 1278-1282 1273-1277 1248-1252 1271.00-1275.00
LLDPE 1280-1284 1280-1284 1280-1284 1280-1284 1248-1252 1273.60-1277.60
PP Homo 1280-1284 1280-1284 1280-1284 1258-1262 1258-1262 1271.20-1275.20
FCA Antwerp (Euro/mt)
LDPE 1258-1262 1258-1262 1258-1262 1253-1257 1228-1232 1251.00-1255.00
LLDPE 1260-1264 1260-1264 1260-1264 1260-1264 1228-1232 1253.60-1257.60
PP Homo 1260-1264 1260-1264 1260-1264 1238-1242 1238-1242 1251.20-1255.20
FAS Houston ($/mt)
LDPE 1764-1786 1764-1786 1764-1786 1764-1786 1764-1786 1764.00-1786.00
LLDPE 1687-1709 1687-1709 1687-1709 1698-1720 1698-1720 1691.40-1713.40
PP Homo 1753-1775 1753-1775 1753-1775 1753-1775 1753-1775 1753.00-1775.00
HDPE Blmldg 1687-1709 1687-1709 1687-1709 1698-1720 1698-1720 1691.40-1713.40
FOB Middle East Netbacks ($/mt)
HDPE 1569-1571 1579-1581 1579-1581 1569-1571 1564-1566 1572.0-1574.0
LDPE 1569-1571 1569-1571 1569-1571 1569-1571 1569-1571 1569.00-1571.00
LLDPE 1544-1546 1544-1546 1544-1546 1539-1541 1539-1541 1542.00-1544.00
PP Raffia 1489-1491 1489-1491 1489-1491 1494-1496 1489-1491 1490.00-1492.00
PP Injection 1479-1481 1479-1481 1479-1481 1479-1481 1479-1481 1479.00-1481.00
Notes: The weekly average represents the average of Thursday through Wednesday of the previous week.
FOB Middle East netback denotes CFR Far East Asia assessments minus the prevailing container freight rate from Al-Jubail to Shanghai for a standard 20-foot container.
Polymer Spot Freight Rates ex-Middle East ($/mt) Subscriber Notes:

From: Middle East Middle East
To: 25-100 mt >100mt Platts changes timing basis for ethylene FD USG, Sept
East China 18-22 10-12 2 Effective September 2, 2014, Platts will change the
South China 14-18 8-14 timing basis reflected in its daily US spot ethylene
India 40-52 20-40
Southeast Asia 18-25 18-24 assessment to current delivery month (M1) and next
NW Europe 55-65 50-60 month (M2) from the current 3- to 30-day basis. Platts
Turkey 50-70 40-60 will change the current delivery month roll into next
US Gulf 130-140 120-130
Latin America 165-175 160-165 delivery month three (3) calendar days prior to the end
Notes: Please refer to the methodology guide for details on port locations. of the month. If this day falls on a weekend or holiday,
Platts will roll its US spot ethylene assessments to
Metals the next month on the next business day. All other
Aluminum US Sep 09 cts/lb 113.510 assessment parameters will remain in effect. Spot
Tin US Sep 08 cts/lb 998 ethylene will remain assessed on a free-delivered (FD)
Tin Europe Sep 05 $/mt 22058-22180 basis into the US Gulf Coast pipeline system in Texas,
with standard cargo size of 5-10 million lb and minimum
Foreign exchange purity of 99.9%. Platts has also amended the description
€1 to $1.2908 £1 to €1.2501 for its current ethylene FD USG assessment to reflect
the assessment of FD USG ethylene in Month 1. The
Global PVC Prices assessment codes will change as follows:
1200 AAOSR00 will change its description from LB Ethylene FD
CFR FE Asia ($/mt) FD NWE (€/mt) FAS Houston ($/mt) USG cts/lb to LB Ethylene FD USG Mo01
1100
AAOSR03 will change its description from LB Ethylene FD
1000 USG cts/lb MAvg to LB Ethylene FD USG Mo01 MAvg
900 AAOSR05 will change its description from LB Ethylene FD

USG cts/lb WAvg to LB Ethylene FD USG Mo01 WAvg
800
Platts will further add new assessments to reflect
700 assessments for delivery in Month 2 as follows:
23-Apr 21-May 18-Jun 16-Jul 13-Aug 10-Sep
(continued on page 29)
Copyright © 2014, McGraw Hill Financial 2

Euro Contract Assessments (Euro/mt)

Germany Holland Italy France Spain Britain* FD NWE CP**
($/mt)
PVC susp Gross 848-852 848-852 848-852 848-852 848-852 703-707 1095-1099
PVC susp Net 823-827 823-827 823-827 823-827 823-827 683-687
LDPE G-P 1450-1455 1450-1455 1420-1425 1445-1450 1420-1425 1155-1159 1872-1878

LLDPE C4 (Blown film) 1400-1405 1400-1405 1400-1405 1400-1405 1400-1405 1115-1119 1807-1814
LLDPE C4 (Cast stretch film) 1400-1405 1400-1405 1400-1405 1400-1405 1400-1405 1115-1119 1807-1814
LLDPE C6 (Blown film) 1440-1445 — — — — — 1859-1865
LLDPE C6 (Cast stretch .film) 1440-1445 — — — — — 1859-1865
HDPE Inj 1350-1355 1350-1355 1350-1355 1350-1355 1350-1355 1076-1080 1743-1749

HDPE Bmldg 1330-1335 1330-1335 1330-1335 1330-1335 1330-1335 1060-1064 1717-1723
HDPE Film 1270-1275 1270-1275 1270-1275 1270-1275 1270-1275 1012-1016 1639-1646
HDPE HMW 2-5 1350-1355 1350-1355 1350-1355 1350-1355 1350-1355 1076-1080 1743-1749
HDPE HMW 5-10 1345-1350 1345-1350 1345-1350 1345-1350 1345-1350 1072-1076 1736-1743
PP Homo Inj 1420-1425 1420-1425 1410-1415 1420-1425 1410-1415 1131-1135 1833-1839

PP Copol 1470-1475 1470-1475 1460-1465 1470-1475 1460-1465 1171-1175 1897-1904
GPPS Net 1510-1520 1510-1520 1510-1520 1510-1520 1510-1520 1203-1211 1949-1962

HIPS Net 1590-1600 1590-1600 1590-1600 1590-1600 1590-1600 1267-1275 2052-2065
EPS 1545-1555 1545-1555 1545-1555 1545-1555 1545-1555 1231-1239 1994-2007
ABS GP/Nat 1690-1700 — 1690-1700 1690-1700 1690-1700 1347-1354 2181-2194

ABS Ave color 1940-1950 — 1940-1950 1940-1950 1940-1950 1546-1554 2504-2517
ABS Auto black 2090-2100 — 2090-2100 2090-2100 2090-2100 1665-1673 —-
PET bottle grade 1174-1180 — 1174-1180 1174-1180 1174-1180 915-919

PET bottle grade — — — — — 1148-1153##
PET bottle grade Net 1087-1093 — — — — 888-892 1403-1411
PET bottle grade Net — — — — — 1115-1120##
APET film grade 1163-1170
APET film grade Net 1077-1083
Notes: *FD Britain = FD UK, with assessments in British Pounds per metric ton. **FD NWE CONTRACT PRICE denotes FD Germany converted into US dollars. ## PET bottle grade assessments basis
FD UK are in Euro/mt. PET assessments refer to regular business at prices negotiated between buyers and sellers on a monthly basis. LLDPE C6 denotes products from Ziegler-Natta catalyst.
Platts European and African Polymer Spot Price Assessments

FOB NWE FD NWE FCA Antwerp CFR Russia* CFR Turkey** CFR North Africa FD UK
($/mt) (Eur/mt) (Eur/mt) (Eur/mt) ($/mt) ($/mt) (GBP/mt)
PVC SUSP 960-964 823-827 — 796-800 1043-1047 — —
($/mt) 1028-1032
LDPE G-P 1533-1539 1248-1252 1228-1232 1198-1202 1650-1654 1658-1662 —

LLDPE (Butene) —- 1248-1252 1228-1232 1198-1202 1650-1654 1583-1587 —
HDPE Inj 1521-1526 1238-1242 1218-1222 1188-1192 1621-1626 1598-1602 —

Bmldg 1495-1500 1218-1222 1198-1202 1168-1172 1595-1600 1598-1602 —
Film 1546-1552 1258-1262 1238-1242 1208-1212 1627-1631 1598-1602 —
PP Homo Inj 1546-1552 1258-1262 1238-1242 1218-1222 1646-1650 1583-1587 —

PP Raffia — — — — 1646-1650 1583-1587 —
PP Copol 1637-1642 1328-1332 1308-1312 1288-1292 1704-1708 1643-1647 —
PS G-P 1743-1755 1410-1420 — — 1780-1790 1775-1785 —

HIPS 1852-1865 1495-1505 — — 1865-1875 1830-1840 —
EPS 1833-1846 1480-1490 — — 1870-1880 — —
ABS GP/Nat 2020-2030***
1687-1695 — — — —
PET bottle grade — 1053-1057 — — — — 868-872

PET bottle grade — — — — — — 1089-1094#
Recycled PET — 888-892 — — — — 733-737
Recycled PET — — — — — — 920-925#
Notes: FOB NWE prices are based on exports of 300mt or more. *CFR Russia denotes CFR St Petersburg; ** CFR Turkey denotes CFR Istanbul; *** ABS GP/Nat denotes CFR NWE in $/mt. # PET
bottle grade and Recycled PET assessments for FD UK are in Euro/mt. Recycled PET assessments are for a hot wash flake without food approval.

Polymers
Polyvinyl Chloride United States
US export PVC prices declined $5 week on week, to be
Europe assessed Wednesday at $930-940/mt FAS Houston, as
European polyvinyl chloride producers conceded the producer to trader offers were heard at $950/mt FAS
full drop in ethylene this week, a reduction from initial Houston range, against buying ideas heard in the $890-
offers for September contracts due to a bearish outlook 900/mt for possible second-half of September deals. A
on the remainder of the third quarter, sources said. The number of large traders were heard declining product
Northwest European PVC contract price was assessed at from producers firmly offering cargoes in the mid-900s, as
Eur825/mt, down Eur5/mt week on week. The September buying interest for product above the $940/mt-mark was
ethylene contract settled at Eur1,150/mt, down Eur55/mt heard nonexistent. Trading sources were heard liquidating
from the August CP — at 48% of PVC, the full impact of August product acquired at $980/mt FAS Houston $40-50/
the fall in ethylene, equivalent to a reduction of Eur26/ mt lower in September, as overseas prices continued to
mt, has now to all intents and purposes been realized. decline, following a weaker energy complex. “Naphtha [the
“We didn’t want to give back the equivalent [of the main feedstock for ethylene production] prices are falling
ethylene fall] but with demand not brilliant and other and PVC buyers in Asia stopped buying amid expectations
producers dropping [the full amount], customers are for a decline in PVC pricing, which is slowly taking place
expecting Eur25-30 [off contracts],” a producer source and that in turn is leading to reduced interest for higher
said. Sources said demand was weak. “In September [it] priced US-produced PVC,” a source said. In markets,
has not been fantastic despite converters rebuilding trading levels for US-made product were heard at $990/
stock [following few purchases in August], customers do mt CFR Turkey and at $1,050/mt West Africa and $1,020/
not want to risk buying too much,” another producer mt North Africa, which netbacks to the $930-940/mt FAS
source said. Customers have been buying no more than Houston level. Trading levels into Peru were heard at
necessary this month on the expectation ethylene is $1,030-1,040/mt CFR Peru, following offers heard at $1,050/
going to drop further, sources said. When ethylene last mt. In domestic markets, demand was also heard lower as
settled on August 29, feedstock naphtha was at $872.25/ seasonally weak fourth-quarter consumption approaches.
mt CIF NWE — Tuesday it was assessed $30.50/mt lower One trading source said that negotiations for the recent
at $841.75/mt. In addition to falling feedstock costs, bout of 2-3 cents/lb increases for September were still
ethylene is heard to be widely abundant following underway. Axiall, Formosa and Oxy Vinyl were the three
seasonally poor downstream demand, sources said. UK major producers to push August price hikes into September.
contract prices also fell this week, down GBP5/mt to Domestic prices were unchanged for the week, assessed at
GBP705/mt freely delivered — having fallen GBP18/mt 62-64 cents/lb delivered. In feedstocks, the initial settlement
the previous week — and continuing to track the drop of a 1.75 cents/lb increase for ethylene contracts was yet
in ethylene, a trade source said. Meanwhile in Turkey, to be accepted market-wide, prompting some ethylene
the spot price was assessed at $1,045/mt CFR, with market participants to indicate that a 2-month settlement is
market fundamentals remaining unchanged. Demand expected at this point. If the settlement is accepted it would
continues to be reported as weak and supply plentiful push the net transaction price for August to 51.25 cents/
as reserves among traders were at a high level, sources lb, its highest since the April 2012 level of 55.25 cents/
said. Offers were heard at $1,050/mt CFR Turkey from lb. In spot markets, September was heard traded in the
Europe, falling $20/mt since the first week of September, Wednesday morning at 70.5 cents/lb MtB Wms.
sources said. “Cheaper European PVC and a weak euro
against the dollar has seen an increase of European Asia
offers,” a trade source said. Although European Asian polyvinyl chloride prices were flat to lower this week
producers agreed they could export at competitive prices amid poor demand. The CFR India market dropped $38/
to Turkey, the low demand seen in country meant sales mt week on week to be assessed at $1,070/mt Wednesday.
to Turkey would not happen in volumes large enough to In bid to reduce inventory levels, a major Northeast Asia
impact supply in NWE, producers said. Elsewhere in Asia producer was heard to have concluded approximately
PVC prices were assessed flat to lower this week amid 10,000 mt late last week at $1,060/mt and below. This
poor demand. The CFR India market dropped $38/mt week, small parcels were heard concluded at around
week on week to be assessed at $1,070/mt Wednesday. $1,070-1,080/mt, inclusive of about $30/mt in anti-
In northeast Asia a producer was heard to have sold dumping duties. Most market participants were waiting
approximately 10,000 mt of PVC late last week at for October offers from Formosa, extending poor market
$1,060/mt and below. European-origin cargoes were sentiment this week. European-origin cargoes were heard
heard offered at $1,090/mt in the region, including an offered at $1,090/mt, including anti-dumping duties
anti-dumping duty of around $30/mt. around $30/mt. Buying ideas returned below $1,050/

mt. End-users were sufficiently covered by high import May 27 at Eur910/mt FD NWE as a result of the fall in
volumes in July and August, thus were able to wait amid energy markets. Expecting a further downside to prices in
low demand during the monsoon season, which ends in an environment of bearish feedstocks, LDPE converters
late September, said a trade source. The source expected retreated from the market. “Nearly all the offers are at
demand to resume in late October. The CFR China Eur1250-1280/mt FD NWE for both LDPE and LLDPE,”
marker remained unchanged week on week at $1,043/mt. one converter said. Dismayed by unenthusiastic demand
Discussions were thin as buyers were anticipating lower in Europe, with prices pegged mostly at Eur1,260-1,280/
October offers from Formosa, resulting in no trades heard mt FD NWE and GBP1030-1050/mt FD UK, sellers turned
this week. With lower domestic PVC prices and cheaper to look to for buyers in other geographies. European
US-origin PVC, downstream users were reluctant to pay a producers were able to export to Latin America, supported
premium for imported PVC, resulting in lesser demand for by a strong dollar against the euro, sources said. Ex-Europe
imports, added a Chinese source. In the Chinese domestic prices in South America were heard at $1,780-1,800/mt
market, ethylene-based PVC remained flat week on week CFR. “A lot of LDPE has been exported in August and the
at Yuan 6,950/mt Wednesday. Chinese carbide-based PVC trend continues,” one producer said. In Turkey, offers from
was unchanged at Yuan 5,950/mt Wednesday. Despite Western Europe were heard at Eur1250-1,310/mt CFR,
low run rates for operating ethylene-based PVC makers, sources said. Turkish converters were also receiving plentiful
a producer expected prices to fall eventually amid poor supplies from the Middle East, pulling LDPE prices down by
domestic demand and increasing inventory levels. The $33/mt to $1,652/mt. In the contract market, prices were
producer said demand was low because end-users preferred assessed down by Eur10 at Eur1,450-1,455/mt FD NWE. The
cheaper carbide-based PVC and re-export makers were prices reflect the full ethylene contract price decrease of
buying imported PVC for its guaranteed quality. The CFR Eur55/mt. Converters eyed decreases in excess of the Eur55/
Southeast Asia PVC marker was flat week on week, assessed mt in view of the upstream prices softening, they said.
at $1,038/mt Wednesday. No offers were heard as sellers One converter pegged contract prices at Eur1,440-1,450/
were still waiting for indications from Formosa’s October mt FD NWE, while producers said they were protecting
offers. Buying ideas remained below $1,020/mt amid cheap margins, aiming to contain the fall in prices to Eur45-50/
carbide-based PVC, heard traded into various Southeast mt, with one producer pegging prices at Eur1,470-475/mt.
Asia countries below $970/mt. A market participant said In production news, Serbian petrochemical producer HIP-
lower October offers would narrow the price gap between Petrohemija’s petrochemical complex in Pancevo began
ethylene-based and carbide-based PVC and possibly ease a two-month maintenance from September 5, a company
negotiations for ethylene-based PVC. spokeswoman said Wednesday. The complex includes a
200,000 mt/year steam cracker, 58,000 mt/year LDPE plant,
Latin America 90,000 mt/year high density PE plant and 45,000 mt/year
Latin American import assessments dropped on the week emulsion synthetic rubber plant.
with ample supply and weak demand in Asia and the
US pushing down PVC prices. The CFR Brazil assessment United States
fell $5/mt week on week, assessed Wednesday at $1,065- US low-density polyethylene export prices were assessed
1,075/mt. Market sources said a drop in crude prices, Wednesday at $1,764-$1,786/mt FAS Houston, unchanged
paired with ample supply and falling prices in Asia, led to week on week, as a limited amount of available product
expectations for lower PVC prices in Brazil. Trading levels was heard leading to few offers and deals for US sellers.
were pegged at $1,080/mt CIF Brazil, which included $10/ Bulk railcar prices from producers to traders were talked at
mt for insurance. The Peru assessment fell $15/mt on week 75-78 cents/lb, with bagged resin talked at 80-81 cents/lb,
to $1,030-1,040/mt on a CFR basis, with trading levels the same levels heard a week ago. Sources pegged the FAS
heard within the same range, while offers for US-produced Houston market in the $1,764-$1,786 range, with multiple
material were heard at $1,050/mt CFR Peru. Market sources sources noting that US offers stemming from those levels
attributed the falling PVC prices to declining global were mostly uncompetitive against other regions. An
demand following weaker energy complex and traders offer to Uragauy was heard at a level that would netback
with high levels of supply during the typically slow fourth to $1,820/mt FAS Houston, with another source talking
quarter, looking to liquidate inventories. prices for product into Central America and Mexico closer
to $1,760/mt FAS Houston. Domestic contracts remained
unsettled for September, with US producers pushing for
Low Density Polyethylene a 3-4 cents/lb increase this month. Sources have said
producers are likely to implement an increase as domestic
Europe demand has been strong and feedstock ethylene prices
European low density polyethylene spot prices slipped have risen. LDPE domestic contracts were assessed for
by Eur30/mt on the week to Eur1,250/mt FD NWE as August at 92-93 cents/lb ($2,028-2,050/mt) delivered-
the downward cycle in the energy complex continued. railcar basis, unchanged since a 4-cent/lb increase was
Feedstock ethylene spot prices hit a low not seen since implemented in February. In feedstock news, ExxonMobil

Chemical has started planned maintenance at its Baytown timing could not be confirmed at 20-40 days from time
Olefins Plant in Baytown, Texas, the company said via a of assessment. Meanwhile in Uruguay, offers were heard
community information line Monday evening. Market in the $1,770-$1,780/mt CFR basis range for Asia-origin
sources estimated the duration of the outage at five to six product. No such levels were heard for Brazil for the week.
weeks. ExxonMobil’s Baytown Olefins Plant has ethylene One Uruguayan buyer pegged US-origin product as high
capacity of 960,000 mt/year. as $1,900/mt CFR Uruguay. In export pricing, FOT Brazil
assessments rose sharply, $50/mt week on week, to $1,840-
Asia $1,850/mt on the back of tightening supply in the region
Asian low density polyethylene prices were stable to weaker and recent increases by the region’s main producers.
this week, amid weak demand in China. The CFR Far A Paraguayan buyer had Brazil-origin LDPE offered at
East Asia marker was assessed at $1,580/mt Wednesday, $1,980/mt CPT Paraguay. An Argentina-based source with
unchanged form last week, while the CFR Southeast Asia a major producer confirmed those levels for the region.
marker was assessed at $1,600/mt, down $10/mt over the Similar offer levels for Brazil-origin material were heard
same period. The domestic China LDPE price was assessed in Uruguay. “Prices are on an upward trend in almost all
at Yuan 12,250/mt, or around $1,600.50/mt on an import- countries in Latin America and there are limited offers
parity basis, down Yuan 50/mt from the previous week, due from the US,” a source said. Mercosur countries may not
to softening demand. Offers were heard at $1,590-1,600/mt see relief in supply availability any time soon as Braskem
CFR China, with deals heard concluded at around $1,580/ began a 35-day turnaround at its Sao Paolo steam cracker
mt CFR China. A Thai producer lowered its offer by $10/mt last week. The maintenance on the unit is expected to be
from last week to $1,600/mt CFR China this week. Demand completed on October 10.
was heard to be weak and most buyers were cautious about
making purchases. In Southeast Asia, offers were heard at
$1,610-1,630/mt CFR Vietnam with deals heard concluded Linear Low Density Polyethylene
at $1,600/mt CFR China. In South Asia, deals were heard
concluded at $1,640/mt CFR India. Europe
European linear low density polyethylene spot prices
Latin America slipped to Eur1,250/mt FD NWE, down by Eur32/mt on
Import pricing for low-density polyethylene in Peru fell the week, on persistent weakness in upstream markets,
$20/mt week on week, assessed Wednesday at $1,800- sources said this week. Feedstock ethylene spot prices
$1,810/mt CFR basis as the market was talked lower and hit a low not seen since May 27 at Eur910/mt FD NWE
offers for Europe-origin and deep-sea cargoes also appeared as a result of the fall in energy markets. “Converters are
to suggest downward movement. Buyers saw most of holding back, expecting the fall in prices to extend,”
their most competitive offers for Asia- and Middle East- a source said, pegging prices at Eur1,250-1,260/mt
origin material. US-origin LDPE continued to be talked in FD NWE. Most sources pegged C4 prices in line with
a range of $1,840-$1,850/mt CFR Basis. However, offers LDPE at Eur1,250-1,280/mt FD NWE. In the LLDPE c6
for Asia-origin material were heard at $1,820-$1,850/ and mLLDPE markets prices also softened. Prices were
mt CFR basis. Market participants also acknowledged heard at Eur1,290-1,300/mt FD NWE for LLDPE C6 and
that Spanish-origin product was being marketed to Eur1,330-1,340/mt FD NWE. The fall in hexene prices
South America at competitive prices. This Europe-origin was heard despite production issues continuing at Ineos’
material was heard offered at levels of $1,780-$1,800/ Feluy site. The Feluy oligomers plant, located south
mt CFR basis for loading in early September, though of Brussels in Belgium, which shut following a fire on
the delivery terms were unknown so the offer was not July 28, will restart in October or November, sources
considered for assessment as the cargoes could fall outside said Tuesday. The plant had been expected to restart in
Platts’ methodology specifications. Saudi Arabia-origin August. The reason for the delay was not clear, while
material, was heard offered at $1,790/mt CFR basis but Ineos was not immediately available for comment. The
similarly was not considered for assessment because its site produces 35,000 mt/year of polyalpha olefins and
delivery timing was unclear, with sources indicating that 200,000 mt/year of linear alpha olefins (LAOs). LAOs
the material generally takes more than 40 days to reach are used as comonomers in the production of PE. Ineos
Peru. One US-based trader pegged the CFR Peru price at produces LLDPE C6 at its site in Grangemouth, Scotland
$1,780/mt, although this level could not be confirmed and metallocene LLDPE C6 at its site in Cologne,
by close of assessment and no trades were heard at this Germany. One source said that Ineos’ supply of LLDPE
level. In Brazil, the CFR assessment dipped $20/mt week had been affected as a result. In the contract market,
on week to $1,800-$1,810/mt as buyers continued to prices were assessed unchanged on the week at Eur1,400-
look abroad to Asia and the Middle East for product and 1,405/mt FD NWE. So far this month prices have traced
sources talked regional prices lower. “US and European the decline equivalent to the ethylene price decrease of
prices are too high” a source said. LDPE offers for Saudi- Eur55/mt. Converters eyed decreases in excess of the
origin material were at $1,780 CFR Brazil, but delivery Eur55/mt in view of the upstream prices softening, while

producers said they were protecting margins, aiming to Latin America

contain the fall in prices to Eur40-50/mt. One producer Import assessments for linear low-density polyethylene into
pegged net contract prices at Eur1,230-1,280/mt FD NWE. Peru dropped $10/mt week on week, assessed Wednesday
at $1,765-$1,775/mt CFR basis due in part to slowing
United States demand, a source said. Both Asia-origin and Middle East-
The US linear low-density export market continued to origin material were heard offered at $1,785/mt CFR Peru
be talked quiet this week as sources said availability with 90-day letters of credit. Higher offers for US-origin
remained tight and prices for product that was being material have kept market participants away, with some
offered was at a level that made it difficult to compete heard as high as $1,820/mt CFR basis. A US-based trader
against other global regions. LLDPE was assessed pegged bids for South American buyers in ranges of $1,750-
Wednesday at $1,698-1,720/mt FAS Houston, up $11/ $1,760/mt CFR. In Brazil, CFR prices fell $10/mt week on
mt week on week. US sources talked the market stable week, assessed at $1,770-1,780/mt with no confirmed trades
to firmer, with bulk railcar prices from producers to heard for the week but regional market participants talking
traders talked at 72-76 cents/lb range, before bagging the market lower. Saudi Arabia-origin product was heard
and transportation to the port. Multiple sources pegged offered as low as $1,700/mt CFR basis, although the offer
prices in the $1,700-$1,720/mt FAS Houston range. Offers was not considered for assessment as the delivery timing for
into Latin America from the US were heard at levels the deep-sea cargo was unclear. Meanwhile in neighboring
that netback to $1,720-$1,740/mt FAS Houston, with no Uruguay, Asia-origin product was offered at $1,740/mt CFR
confirmed deals. Domestic contracts remained unsettled basis, a source said. Offers for US-origin material continued
for September, with US producers pushing for a 3-4 cents/ to be dismissed as too high as the USG has experienced
lb increase. Multiple sources have said throughout the tightening supply, market sources said. LLDPE offers into
month that the increase was likely to be implemented Paraguay were heard as high as $1,800/mt CFR basis. Export
based on strong domestic demand and higher feedstock pricing out of Brazil climbed $50/mt week on week, assessed
ethylene prices. LLDPE domestic contracts were assessed at $1,790-$1,800/mt FOT basis on the back of limited
for August at 79-80 cents/lb ($1,742-1,764/mt) for supply and producer-led increases, sources said. Mercosur
delivered railcars, unchanged since a 4-cent/lb increase sources confirmed Brazilian LLDPE offers at $1,940-$1,980/
was implemented in February. In feedstock news, mt CPT Paraguay. FOT basis pricing does not include freight
ExxonMobil Chemical has started planned maintenance costs, estimated by sources at $100-$120/mt.
at its Baytown Olefins Plant in Baytown, Texas, the
company said via a community information line Monday
evening. Market sources estimated the duration of the High-Density Polyethylene
outage at five to six weeks. ExxonMobil’s Baytown
Olefins Plant has ethylene capacity of 960,000 mt/year. Europe
Unlike other PE grades, European high density polyethylene
Asia film prices were able to resist pressures of falling feedstocks
Linear low density polyethylene prices were stable this on the back of limited supplies, sources said. HDPE film
week amid thin trading. The CFR Far East Asia marker was prices were assessed flat at Eur1,260/mt FD NWE, while
assessed stable at $1,550/mt Wednesday, while the CFR blowmolding prices were assessed at Eur1,220/mt and
Southeast Asia marker was assessed down $15/mt week on injection and Eur1,240/mt, slightly down on the week.
week at $1,595/mt and the CFR South Asia maker was also Feedstock ethylene spot prices hit a low not seen since
down $10/mt week on week at $1,650/mt Wednesday. The May 27 at Eur910/mt FD NWE as a result of the fall in
domestic China LLDPE price was assessed at Yuan 11,300/ energy markets. Expecting a further downside to prices in
mt, or around $1,476.38/mt on an import-parity basis, an environment of bearish feedstocks, blowmolding and
down Yuan 100/mt from the previous week on softening injection converters retreated from the market. Sources,
demand. Meanwhile, Singapore-origin LLDPE cargoes with meanwhile, said that the film demand was buoyed
metallocene were heard offered at $1,590/mt CFR China by medium density production hiccups, sources said.
and without metallocene at $1,600/mt. Cargoes from Meanwhile, abundant supplies for HDPE injection and
Thailand heard offered at $1,630/mt CFR China, down blowmolding drove European producers to the Turkish
$20/mt from last week. Cargoes originating in Southeast market on the back of soft demand in Europe. European
Asia are exempt from import tax under the ASEAN FTA. In offers in Turkey were heard at Eur1,225-1,260/mt CFR
Southeast Asia, deals were heard concluded at $1,580-1,605/ Turkey for injection and blowmolding. In the contract
mt CFR Vietnam. Demand was heard to be lackluster and market, prices were assessed stable to lower on the week at
most buyers were waiting for new offers to be announced Eur1,352.50/mt FD NWE, Eur1,332.50/mt and Eur1,272.50/
over the next two weeks. In South Asia, deals were heard mt for injection, blowmolding and film respectively. So
concluded at around $1,650/mt CFR India. Demand for far this month prices have traced the decline equivalent to
imported cargoes were heard to be weak due to availability the ethylene price decrease of Eur55/mt. Converters eyed
of cargoes in the local market at a competitive price. decreases in excess of the Eur55/mt in view of the upstream

prices softening, while producers said they were protecting were talked in the 74-79 cents/lb range. HDPE film from
margins, aiming to contain the fall in prices to Eur40-50/ a US producer into Uruguay was talked a price that would
mt. One producer saw contract prices for blowmolding at netback to $1,720-$1,740, though sources in the region
Eur1,370-1,375/mt FD NWE. In production news, Serbian said the price would be at a CFR level that would be above
petrochemical producer HIP-Petrohemija’s petrochemical offers from Asia. US prices into Peru were heard at a level
complex in Pancevo began a two-month maintenance from that would netback to $1,720/mt FAS Houston, but again
September 5, a company spokeswoman said Wednesday. had trouble gaining traction as the market there was below
The complex includes a 200,000 mt/year steam cracker, levels where US product could be competitive. Domestic
58,000 mt/year LDPE plant, 90,000 mt/year high density PE contracts remained unsettled for September, with producers
plant and 45,000 mt/year emulsion synthetic rubber plant. pushing for a 3-4 cents/lb increase that most market sources
expected to see implemented by month’s end because of
Africa strong domestic demand and increasing feedstock ethylene
The fall in the European spot prices triggered softening prices. Following flat August settlements, HDPE contracts
in the African prices, sources said this week. LDPE prices were last assessed for blow molding at 83-84 cents/lb
were assessed at $1,660/mt CFR down $10/mt on the ($1,830-1,852/mt) delivered-railcar basis; at 83-84 cents/
week. FOB NWE for LDPE was down $68/mt on the week lb ($1,830-1,852/mt) for injection; and at 86-87 cents/lb
to $1,533/mt, opening the arbitrage to Africa. Dismayed ($1,896-1,918/mt) for high molecular weight film.
by unenthusiastic demand in Europe, with prices pegged
mostly at Eur1,260-1,280/mt FD NWE and GBP1,030- Asia
1,050/mt FD UK, European sellers had already turned to Asian high density polyethylene prices were stable to
look to buyers in other geographies. European producers weaker this week as buyers kept to the sidelines. The CFR
were able to export to Latin America, supported by a Far East Asia marker was down $5/mt from last week at
strong dollar against the euro, sources said. Ex-Europe $1,575/mt Wednesday, CFR Southeast Asia fell $15/mt
prices in South America were heard at $1,780-1,800/mt to $1,605/mt, and CFR South Asia was flat at $1,650/mt.
CFR. Meanwhile, HDPE and LLDPE prices were pegged Sources said buyers were waiting for new offers expected to
stable at $1,00/mt CFR in North Africa. be announced in the next two weeks. “The monthly offers
are likely to be brought forward amid of the upcoming
United States holidays in China in the first week of October. Thus, people
US high density polyethylene availability remained limited are just waiting for all these offer to come and get more
for export with prices again talked at levels which made visibility of the market movement,” said a Chinese trader.
moving product increasingly difficult, even into Central In Southeast Asia, offers were heard at $1,605-1,610/mt CFR
and South America, sources said. “It’s difficult to see US Vietnam for Middle Eastern suppliers. Deals were heard
pricing working anywhere,” one US-based trader source concluded at $1,605/mt CFR Vietnam. Meanwhile, Thai
said. HDPE blowmolding was assessed Wednesday at material was heard concluded at $1,660/mt CFR Indonesia.
$1,698-$1,720/mt FAS Houston, up $11/mt week on week. Sources said demand was weak and most buyers were also
Railcar prices were talked in the 71-76 cents/lb range, with waiting for new offers to be announced. In South Asia,
most market participants heard pegging prices at 75 cents/ Middle Eastern material was heard concluded at $1,650/mt
lb for bulk cars, which would translate to an FAS Houston CFR India. There was demand for imported material amid
price of $1,708/mt after bagging and transportation to shortages in the domestic market.
the port. Sources talked export prices at $1,675-$1,742/
mt FAS Houston, with product heard offered to Peru at Latin America
a level that would netback to $1,720/mt FAS Houston High density polyethylene import pricing into Latin
once freight was deducted. HDPE Injection was assessed America dipped this week as Asia continues to push lower-
Wednesday at $1,709-$1,731/mt FAS Houston, up $11/ priced product into the continent. Sources have indicated
mt week on week, as product remained tighter than other that some Asian sellers are offering $20/mt discounts for
grades of HDPE, sources said. Sources talked prices about bulk orders. In Brazil, the HDPE film assessment dropped
a cent higher than blowmolding, with bulk railcar prices $10/mt week on week to a Wednesday assessment of
talked from 73-77 cents/lb. A market source said one $1,750-$1,760/mt CFR basis, and blowmolding and
producer had raised offers by an additional 3 cents/lb this injection were down $30/mt to assessments of $1,730-
week. Export offers were heard at $1,740-$1,760/mt FAS $1,740/mt CFR and $1,730-$1,740 CFR basis, respectively.
Houston to Mexico and Central America. A deal was seen Saudi Arabia-origin film is being offered into Brazil $1,770-
Tuesday on the Houston Mercantile Exchange at 82 cents/lb 1,780/mt while both blowmolding and injection were
DAP North America for two railcars. HDPE high molecular offered to $1,740/mt CFR Brazil. US-origin continues to
weight film was assessed Wednesday at $1,720-$1,742/mt be talked high with film heard offered in the $1,800/
FAS Houston, down $33/mt, as sellers were heard lowering mt CFR range by a Mercosur source. In Peru, film was
prices to become more competitive against product being assessed $15/mt lower at $1,765-$1,775/mt CFR basis, with
offered from Asia and the Middle East. Bulk railcar prices Thailand-origin material offered at $1,780/mt CFR basis

with an early September loading date. US-origin material on-month target was for more than the fall in propylene,
was pegged at $1,800-$1,820/mt CFR basis for all HDPE and that if he wished to settle in line with the propylene
grades, per Peru-based buyers. Blowmolding and injection drop, this was already achievable at the start of the month.
were also assessed $20/mt lower week on week at $1,745-
$1,755/mt CFR basis. A source pegged the market around Africa
$1,750-$1,760/mt CFR Peru, with multiple offers from North African polypropylene spot prices were unchanged
Asia heard at $1,765/mt CFR and higher. One buyer said this week, at $1,585/mt CFR N.Africa, as demand
there was a blowmolding offer for Asia-origin material remained seasonally poor, combined with an absence
at $1,720-$1,730/mt, however it could not be verified of developments in supply issues. The Ebola epidemic
and other sources had not heard pricing at that level. A continued to hamper trade, one trader said, adding that the
market source talked the market in the $1,730/mt CFR ethylene shortages in the market, attributed to production
Uruguay basis for material from Asia for all grades. In issues, continued to restrict copolymer availability.
Brazilian exports, market sources in neighboring countries
said offer prices moved higher as a producers was heard United States
implementing a September increase. The export price for With September contract pricing still unresolved for the
all grades was assessed Wednesday at $1,780-$1,790/mt domestic polypropylene market, at least one producer is
FOT basis, up $50/mt week on week. HDPE offers were already pushing for increases for October. LyondellBasell
heard to Mercosur countries in ranges of $1,940-$1,970/ subsidiaries Equistar Chemicals and Mexico City-based
mt CPT basis depending on the grade. No deals or bids Basell Poliolefinas on Tuesday announced plans to increase
were heard on an FOT Brazil basis, which is an export October polypropylene prices by 3 cents/lb ($66/mt) in
assessment to Mercosur countries. FOT basis pricing does addition to any change in feedstock contract pricing. The
not include freight costs, estimated by sources at $100- disclosure came via a letter to customers that was obtained
$120/mt. A Brazilian buyer said up to 10 Brazilian based by Platts. It followed a letter by another major producer,
companies could be preparing to purchase upwards of Total, that called for a 3-cent/lb increase for September
800,000 mt of product to take advantage of the shortage pricing independent of any change in monomer pricing.
in the region. Braskem’s Sao Paulo steam cracker began Market sources said Total was following in Formosa Plastic
a turnaround on September 6 that was expected to last Corporation’s footsteps and moving away from monomer-
until October 10, according to the company. Participants plus formulas for contracts, and a person with knowledge
have anticipated product shortages as well as less product of Total’s pricing strategy said it is the company’s belief
available for export. that PP pricing should reflect all market dynamics, not just
cost. Market participants have said any additional increases
announced in recent months by producers were unlikely to
Polypropylene affect buyers with monomer-plus contracts at least through
the end of the year, but that distributors and buyers with
Europe other contract structures would likely have to absorb at least
European polypropylene spot prices fell this week by some hikes given how tight the market has been the past
Eur22/mt to close at Eur1,260/mt FD NWE Wednesday, as two months or so. September contract pricing remained
the effect of the propylene contract price fall continued unresolved, because polymer-grade propylene contracts
to pull down PP prices. Buyers expected a price fall in had yet to be agreed marketwide, sources said. Platts last
the market, on the back of seasonally poor demand and assessed polypropylene contracts for August at 82.50-83.50
solid availability of material arising from the absence of cents/lb delivered-railcar basis for homopolymer grades and
any production issues, which hampered trading activity. at 83.50-84.50 cents/lb for fiber grade, up 5 cents/lb since
As a consequence, buyers were purchasing only what July on a similar movement by PGP. One nomination for
was needed, one trader said. In the contract market, the September PGP contract was heard at plus-1 cent/lb
prices were assessed Eur5/mt lower this week, closing over August, but spot trading over the past two weeks —
at Eur1,422.5/mt FD NWE, with PP contract prices for September was heard traded Wednesday at 70 and lower
September tracing the month-on-month fall in propylene. at 69.50 cents/lb delivered — pointed toward a rollover
One producer said that he was yet to settle contracts and settlement, sources said. Polypropylene contracts in the
that he was resisting a decrease in line with the monomer. US closely follow PGP contract pricing as a majority of
He added that order intake was very good and this was contracts remain on monomer-plus formulas. Distributor
due to a need to buy from customers, as a number of sources have in recent weeks talked August demand as
them held off purchasing in August on the expectation of healthy despite the increases, although other sources said
a price drop in monomer. The subsequent low inventory those increases had scared away buyers. Spot pricing in
forced them to return to the market, he added. Another the secondary market was last heard earlier this month
producer said that demand had improved in September, at levels of 85-87 cents/lb delivered for homopolymer
as buyers emerged from the holiday period. One converter material. Export talk has been scarce, particularly as current
said that he was yet to settle his contracts as his month- pricing renders US-origin product uncompetitive, sources

said. The FAS Houston assessments for homopolymer (180,000 b/d) refinery at Bhatinda to be fully operational
injection and co-polymer grades were stable week on week by the end of this month, a senior official said late Friday.
at $1,753-$1,775/mt and $1,775-$1,797/mt, respectively All units are restarting one-by-one, and the refinery should
on continued lack of availability and continued strength in be fully operational in another 15-20 days, HPCL’s director
feedstock PGP. No trade, bids or offers were heard by close B.K. Namdeo said at a press conference Friday.
of assessment. Export pricing into Mexico was last heard
talked in the high-70s to low-80s cents/lb range on a DAP Latin America
Laredo basis. Export pricing has in the past been talked Polypropylene import assessments into Peru were stable
at monomer-plus 10 cents/lb, which would translate into this week, assessed Wednesday at $1,690-$1,700/mt CFR
$1,753-$1,764/mt FAS Houston basis when accounting for basis for homopolymer material and at $1,740-$1,750/mt
spot trades at 69.50-70 cents/lb delivered, as told by sources. CFR basis for co-polymer material. Homopolymer offers for
India-origin material were heard at levels of $1,720/mt CFR
Asia basis, while a US-based trader said sellers were targeting
Asian polypropylene prices were mostly flat this week $1,710-$1,730/mt CFR basis into the region. Regional
amid thin trading. The CFR Far East Asia marker for PP producers were heard offering higher, with homopolymer
raffia was assessed at $1,500/mt, the same price as week talked at levels of $1,750-$1,790/mt CFR basis for Chilean
ago. “In the short term, it looks really weak. Most suppliers and Colombian material and co-polymer well into the
have stopped to offer, but I think maybe in one to two $1,800s/mt CFR basis, sources said. Brazil’s major producer
weeks they may re-offer,” a trader said. “No one wants to Braskem was also heard raising prices into the region, but
buy, everyone is cautious,” the same source added. Market confirmation could not be obtained by time of publication.
participants put the notional deal level between $1,500/ In Brazil, homopolymer assessments were stable week on
mt CFR FEA with a 90-day letter of credit and $1,520/ week at $1,690-$1,700/mt CFR basis amid slow demand
mt on L/C at sight basis. A deal was heard concluded at in the region, sources said. Offers were last heard in the
$1,500-1,510/mt CFR FEA on L/C at sight basis, but this $1,700-$1,760/mt CFR range. Co-polymer assessments
could not be confirmed. Offers were heard at $1,510- remained flat this week at $1,740-$1,750/mt CFR basis,
1,520/mt CFR FEA on L/C at sight basis. One source said with stronger demand seen in these markets ahead of a
he heard cargoes from Iran being offered at $1,480-1,490/ maintenance by a major regional producer, sources said.
mt on L/C 90 days basis, but this could not be verified. No deals, offers or bids were heard by close of assessment.
One Chinese end-user said: “I did not hear any PP cargo Elsewhere, demand was heard weak in Argentina. For
from Iran — PE very much, but not PP.” China domestic exports out of Brazil, FOT assessments for homopolymer
prices were assessed at Yuan 11,300/mt ex-works, down material were stable week on week at $1,655-$1,665/mt
Yuan 25 week on week, equivalent to $1,476/mt on an and $1,695-$1,705/mt for co-polymer, supported by import
import-parity basis. “Domestic prices are lower this week pricing and limited availability, sources said. No deals were
due to [weaker] oil and futures prices and an increase in heard by close of assessment. FOT basis pricing, which is
supply,” a Chinese end-user said. A trader in China said a for Brazil product exported to Mercosur countries, does not
methanol-to-propylene plant in Ningmei in the northwest include freight costs, estimated by sources at $100-$120/mt.
successfully started August 25 with an integrated PP
production capacity of 200,000 mt/year. He said another
plant in southern China’s Maoming started its PP plant Polystyrene
August 28 with 200,000 mt/year capacity, and a third
plant in Shijiazhuang in the north started August 20 with Europe
200,000 mt/year PP capacity. For the CFR Southeast Asia Northwest European polystyrene contract values were
marker, the PP Raffia grade was assessed $5/mt lower week sideways from the previous week, settling at Eur1,515/
on week at $1,525/mt. Most market participants said that mt FD NWE for general purpose grade and Eur1,595/
the market is softer than last week with some sellers saying mt FD NWE for high impact grade product. Upstream in
notional deal levels were between $1,520/mt and $1,530/ feedstocks, NWE styrene monomer spot prices slumped
mt CFR Vietnam. “The market is quiet from both buyer $39/mt from the previous week to $1,518/mt FOB ARA, and
and seller side,” one Southeast Asian trader said. In South maintained a bearish outlook going into October. Demand
Asia, prices for PP Homo held steady week on week at had yet to emerge from the doldrums of an August that was
$1,560/mt CFR. There was a deal heard done at $1,580/mt one of the poorest months in terms of sales for the market,
CFR India. But there was an offer still standing at $1,565/ sources said. Converters in the food and beverage packaging
mt CFR South Asia. One trader said he heard an offer and building and construction industries reported a year-to-
at $1,550/mt CFR India, but this could not be verified date decline in sales volumes of around 5-10%, and as such
immediately. A source said South Asia supply remained had lowered their own operating rates by the same extent
tight, particularly in India, where Haldia’s 350,000 mt/year to match those levels. Participants attributed the weakened
PP plant and HPCL-Mittal Energy’s 440,000 mt/year PP state of consumption to demand destruction brought
plant were still shut. HMEL expects its 9 million mt/year about by high outright prices of PS, that saw applications

slowly shift to using other substitute products like PP and United States
PET that were trading at a Eur250-400/mt discount to September domestic contracts remained unsettled this
PS. “Our customers are also selling less, also because PS week, but expectations were for a 2-4 cents/lb decrease
is so expensive,” said a converter. “We are selling more from August contracts, sources said this week. Buyers were
PET than we did two years ago and we have a new line, heard pushing for the decrease after September US benzene
so less and less PS even though it goes slowly.” Other contracts dropped 36-37 cents to settle at a 469-470 cents/
producers added that poor summer weather conditions in gal split, sources said. Sellers had been heard seeking a
Germany and some other parts of Europe contributed to the rollover for a second consecutive month, but sources said
reduction in demand. In the spot market, European offers this week that sellers were talking decreases in the 2-4 cents/
at Eur1,480-1,500/mt FD NWE were outshone by Russian lb range. With benzene spot pricing continuing to decline,
and Egyptian offers at Eur1,400-1,430/mt FD NWE but sources said another decrease in October might follow the
sources said going forward imports would be less attractive anticipated drop in September pricing, dependent on the
given a strengthening greenback. From the beginning of October benzene contract price. Domestic contracts were
August, the euro/dollar exchange rate sank 3.8% to 1.29 as last assessed for August at record-highs of 126-128 cents/lb
of Wednesday, giving European producers that equivalent delivered railcar for general-purpose polystyrene and 136-
edge over Asian offers. Spot prices were assessed Eur20/mt 138 cents/lb delivered railcar for high-impact polystyrene.
down at Eur1,415/mt FD NWE for GPPS and Eur1,500/mt Polystyrene demand was described as stable but slower
FD NWE for HIPS. Expandable polystyrene contract prices as the summer PS season has ended, sources said. Supply
were flat on the week at Eur1,550/mt FD NWE amid stable was heard tight, but buyers were not having issues finding
fundamentals. While demand and consumption volumes product, sources said. Polystyrene pricing has been at
in September marked an improvement from August, that record highs over the last several months after it followed
improved intake still disappointed raised expectations on feedstock benzene contracts higher. With benzene contracts
the back of an exceptionally poor August, local sources falling, sources said decreases were needed. Since settling
said. Early-month settlements were reported at a decrease at a record high of 528 cents/gal in July, benzene contracts
of Eur30-40/mt, but this was hardly representative as yet, have fallen 58-59 cents/gal, which is equal to just less than
sources said. The Turkish market was stuck in an impasse 6 cents of production costs for styrene and polystyrene,
this week, with prices assessed unchanged at $1,785/mt industry sources said, adding that 10 cents of benzene is
CFR for GPPS and $5/mt lower at $1,870/mt CFR for HIPS. equal to 1 cent in styrene and polystyrene production costs.
Market participants across the board said demand was weak, In production, Americas Styrenics declared force majeure
and expected to stay that way given that Egyptian suppliers on all polystyrene and styrene sales, effective August 1,
kept prices constant at $1,800/mt CFR for GPPS and as local according to letters the company sent to customers in July.
buyers still struggled with cash flow issues. Sources said the force majeure on both products was still in
effect, but confirmation from the producer was unavailable.
Africa In the export market, the GPPS and HIPS assessments both
North Africa polystyrene prices meandered $5/mt lower fell $50/mt on the week to $1,995/mt FAS Houston and
to close at an assessment of $1,780/mt CFR for general $2,095/mt FAS Houston, respectively. The last price heard
purpose grade product while HIPS values sank $40/mt out of the US on HIPS was 95 cents/lb ($2,095/mt) FAS
to settle at $1,830-1,840/mt CFR for high impact grade Houston, a trader said, adding that HIPS was just below
material. While demand and consumption volumes in the $2,100/mt FAS Houston and GPPS was just below the
September marked an improvement from August, that $2,000/mt FAS Houston level. US prices were still heard
improved intake still disappointed raised expectations on to be too high compared to other regions. Asian-origin
the back of an exceptionally poor August, local sources material was heard sold at $1,850/mt CFR Peru for HIPS and
said. Asian producers placed offers in a wide range $1,810/mt CFR Peru for GPPS.
between $1,800-1,900/mt CFR for GPPS, while European
producers held back on offers. The sharpest prices were Asia
from Egyptian and Saudi Arabian producers who offered GPPS: Asian general purpose polystyrene prices were
$1,780-1,800/mt CFR for GPPS and $1,830-1,840/mt assessed $30/mt lower week on week at $1,640/mt CFR
CFR for HIPS, but inspired little interest from buyers China Wednesday, and down $30/mt in Southeast Asia
and end-users who were still struggling to clear out old during the same period at $1,660/mt CFR, due to soft
stock from their warehouses, sources said. Local industry demand. A polystyrene producer was seeing bearishness
sources said that while trader and distributor inventories ahead as buyers were sidelined in the expectation weaker
remained lofty, market fundamentals are poised to stay styrene feedstock costs would see PS prices fall, which
stable heading into October. “Inventory is above the usual was leading to a drop in demand and a fall in prices. In
[level], I don’t think things will pick up in September,” addition, demand for PS was already seen as soft with
said a source. “I do not see any change.” Upstream in demand entering a lull season for general purpose grade
feedstocks, NWE styrene monomer spot prices slumped used in refrigerators and air conditioners, and for which
$39/mt from the previous week to $1,518/mt FOB ARA. demand is strongest during the summer months in the

northern hemisphere. HIPS: High impact polystyrene costs. CFR China was assessed down $20/mt week on
prices were assessed $30/mt lower at $1,704/mt CFR week at $1,925/mt CFR, while Southeast Asia was assessed
China, and $1,740/mt CFR Southeast Asia on the back down $15/mt at $1,940/mt CFR.
of weak demand, with many end-users hoping lower SM
prices would weigh on HIPS as well. FOB Korea for SM United States
closed at $1,457/mt Wednesday, down $6/mt day on The US acrylonitrile-butadiene-styrene domestic assessment
day, and down $47/mt from a week ago. Co-feedstock fell 1 cent on the week to 123 cents/lb delivered railcar
butadiene rose $75/mt week on week to close at $1,510/ Wednesday on lower feedstocks. ABS domestic pricing
mt CFR China Wednesday. EPS: Expandable polystyrene was heard lower this week in the range of 120-125 cents/
was assessed down $25/mt week on week at $1,675/mt lb delivered and prices could fall further in October if
CFR for general purpose, and also down $25/mt for flame feedstocks - specifically benzene - continue dropping.
retardant to $1,725/mt CFR, both on an FOB Northeast Demand in September was heard steady and expected
Asia basis. Demand for expandable PS, used for insulation to remain stable in October, while supply was available,
in construction, was seen as weak in China and overseas, sources said. In feedstocks, styrene was assessed down 0.65
with producers lowering their offer levels this week. cent over the week at 68.40 cents/lb Wednesday amid a
quiet market and slow demand as arbitrages to Europe and
Asia remained shut, sources said. Upstream from styrene
Acrylonitrile Butadiene Styrene in benzene, the spot assessment tumbled 39 cents week
on week to 422 cents/gal FOB USG on weak downstream
Europe demand and bearish sentiment as imports are expected
Northwest European acrylonitrile-butadiene-styrene to arrive as early as late September and possibly flood the
contract prices ticked up Eur5/mt in the second week of market, sources said. In other feedstocks, US spot butadiene
September, to close at an assessment of Eur1,695/mt FD was down 2 cents week over week Friday at an assessment
NWE, primarily on an unexpected uptick in demand, of 58 cents/lb CIF USG as demand remained weak and tanks
market sources said. Early-month contracts were reported were full, sources said. US spot ACN was unchanged on the
concluded at a decrease of Eur15-20/mt from August week at $1,980/mt FOB USG as supply remained tight.
at Eur1,705-1,710/mt FD NWE, but the majority of
September contracts remained in negotiations. Increases Asia
in ABS bucked an overall bearish trend in the polymers Asian acrylonitrile-butadiene-styrene prices were assessed
complex, as contract values for PS, PP and PE stepped lower on the back of weak demand, and partly lower
lower across the board, and was largely founded upon the feedstock costs. CFR China was assessed down $20/mt
weakness of the euro that bolstered the region’s exports. week on week at $1,925/mt CFR, while Southeast Asia
Since the beginning of August, the euro/dollar exchange was assessed down $15/mt at $1,940/mt CFR. Producers
rate has sunk 3.8% to 1.29 as of Wednesday, giving were seen lowering their offers to entice buyers, who
European producers that equivalent edge over Asian mostly remained cautious amid falling styrene monomer
offers. European producers cited significantly higher feedstock costs, which have dampened sentiment in the
order volumes in September, driven by firming demand polyester chain as well. Prices of major feedstock styrene
from the injection-molding sector going into appliances monomer fell to $1,483/mt CFR China Wednesday, down
and toys that were currently in peak seasonality ahead of $6/mt day on day, and down $47/mt from one week ago.
Christmas. “We are flooded with orders now, customers Over the same period, however, feedstock butadiene rose
seem to have not been buying or building much stocks,” $75/mt to close at $1,510/mt CFR China Wednesday,
said a supplier. “We see customers who have not been while acrylonitrile fell $25/mt week on week to $2,045/
buying for the last six months buying now.” The mt CFR Far East Asia on Tuesday. Based on those
specialties segment was also reported to be performing feedstock prices and a conversion cost of about $280/mt,
at healthy levels. “It’s really in contrast with the rest of the break-even price for ABS was estimated at $1,908/mt,
the polymers, but it is not as much underlying demand down $23/mt from a week earlier. Margins improved $3/
as it is shifting shares from Asia [producers] to Europe,” mt week on week to around $17/mt.
said a source. “There has been an Eur80/mt cost increase
for Asian producers, it’s not a short term blip perhaps.”
Asian producers, have increased their market share in Polyethylene Terephthalate
Europe from 20% in 2013 to 30% in 2014, on the back
of more competitive costs but that situation could alter Europe
going ahead if current currency trends persist, sources Lack of clarity on feedstock costs in August and September
said. Additionally, incremental supplies were few and mean that the negotiations over the contractual prices
far between with regional producers running at reduced for polyethylene terephthalate in Europe have stalled,
rates, sources added. Asian ABS prices were assessed lower according to sources. Contract prices were assessed at
on the back of weak demand, and partly lower feedstock Eur1,090/mt FD NWE and GBP890/mt FD UK Wednesday,

unchanged on the week. Meanwhile, the pressure from new was OK for the season, and that he was not suffering from
European capacities intensified, with spot prices slipping a stock build-up. However with the pressure coming from
further down. On the Continent the spot price was assessed the virgin side, it was likely that the R-PET prices would
at Eur1,055/mt FD NWE, down by Eur10/mt, and in the also have to go down eventually. In order to preserve the
UK at Eur870/mt FD UK, down by GBP8/mt. Delayed margin, recyclers would have to negotiate lower bale prices,
settlements of the PET feedstocks contracts perplexed many which could be problematic as a the availability of bales
participants, who could not finalize their August business, normally decreases in autumn. A UK recycler meanwhile,
nor properly plan September. There was still not even was more optimistic, saying that the weaker pound amid
initial settlement on paraxylene in Europe for August, with the Scottish independence vote was supportive for domestic
sources saying that this could potentially be reached later producers. As imports become more expensive, British
this week. In July after an initially split settlement, PX was producer could gain more breathing room, he said.
agreed at Eur995/mt FD NWE. Over August spot PX prices
shed over 8%, dipping to $1,200/mt FOB ARA at the end of US
August. Spot PX prices averaged in August at $1,254.1/mt, Spot polyethylene terephthalate prices were talked lower on
or Eur941/mt based on the Platts euro/dollar exchange rate. the US West Coast this week as sources said recent declines
Earlier this year the PX CP was settled at an 9-12% premium in Asian prices were pushing the market lower, even as
to the average spot price during the month. However, in freight prices were moving higher because of limited
June and July the disparity between the CP and average space availability on ships. West Coast spot prices were
spot price narrowed to just 2%. Should the August CP assessed Wednesday at $1,565/mt DDP US West Coast (71
settle at a 2% premium to the average August spot price, it cents/lb), down $55/mt week on week. Multiple sources
should be around Eur960/mt, down by Eur35/mt month on talked delivered West Coast prices in the 70-72 cents/lb
month. On MEG, there was still no full settlement for July, range. Asian markets were assesses stable week on week
let alone August. The initial July settlement was at Eur943/ Wednesday at $1,290/mt FOB Northeast Asia and $1,340/
mt FD NWE. There was an expectation of a decrease in mt FOB Southeast Asia, but have mostly trended lower
MEG for September following a decline in the ethylene CP. since July — with a few occasional spikes — as demand has
Contract prices were left unchanged this week, however, been heard weak and feedstock pricing has moved down.
consumers said that these should see a decline by the end As a result, the US market has seen a stream of lower-priced
of the month, when there is more clarity on feedstocks. PET imports entering the West Coast over the past month,
In the spot market, there was a significant differential according to market sources. September domestic contracts
between the offers from new European plants and already remained unsettled Wednesday, with market sources closely
established producers, according to sources. The former monitoring feedstock pricing and availability for guidance
were heard offering material at Eur1,045-1,050/mt FD NWE, on settlements. US PET contracts were assessed for August at
trying to increase their share of the market, sources said. $1,940-$1,962/mt (88-89 cents/lb). At least one US producer
Neither JBF — which launched a 475,000 mt/year PET plant has announced a 3 cents/lb September increases for all
in Geel, Belgium — nor Lotte — which recently started up grades of PET resin because of PTA shortages after BP shut
a 200,000 mt/year Teesside, UK, plant — were available to a line at its Cooper River, South Carolina, facility because
confirm these levels or to comment on the quality of the of a fire last month. However, other market sources have
material. Some sources suggested that the product could said declining paraxylene prices may result in a lower PTA
still be unsuitable for some applications, however, at least price, that could — in part — offset any potential problems
one consumer said that he had no issues with the quality, resulting from lower PTA availability due to current
and another said he was testing it right now. These offers allocations. US PX was assessed Wednesday at $1,190/
were not used for the assessment purposes. Nonetheless, mt FOB USG, down $60/mt from the start of September
they put pressure on other producers, whose offers were and down $120/mt from the beginning of August. Fellow
heard sliding down to Eur1,065/mt, the level which was feedstock monoethylene glycol contracts for US fiber and
used to assess the market. UK prices moved lower in line PET makers were assessed for September at 48.85 cents/lb
with the Continent, however spot business was heard ($1,077/mt) based on producer discounts for large-volume
done in a wide GBP860-890/mt range. The declining trend buyers, up 0.8 cent/lb from August.
meant that consumers preferred to delay their purchases
in anticipation of lower prices going forward. Sources said Asia
that the turnarounds scheduled for later September-October The Asian polyethylene terephthalate markers were
would help alleviate this pressure and delay further the assessed unchanged from the previous week at $1,290/
dramatic lengthening of the European market. R-PET: The mt FOB Northeast Asia and $1,340/mt FOB Southeast Asia
prices of the hot-wash flake recycled PET remained stable Wednesday, amid sluggish trading due to holidays in China
this week, as the discount to the virgin PET price continued and South Korea. Sentiment in the Asian PET market was
to be comfortable still at 16%. Prices were assessed at bearish due to falling feedstock prices, said sources. On
Eur890/mt and GBP735/mt on the Continent and in the Wednesday, the CFR China purified terephthalic acid price
UK respectively. A European recycler said that the demand fell $27/mt week on week to be assessed at $940/mt, while

the CFR China monoethylene glycol price dropped $34/ South Korean producers are expected to start offering their
mt to be assessed at $936/mt over the same period. In cargoes from next week. Due to falling feedstock prices, the
addition, bottle-grade PET demand was sluggish as the peak Asian PET margins improved slightly. The PET production
summer demand season has ended leading to lower PET margin basis Northeast Asia was calculated at plus $13.36/mt
plant operations in Asia. China’s PET producers are running compared to minus $21.42/mt in the previous week, while
their plants at 60%, said sources. Reflecting the weakness, the PET margin basis Southeast Asia was calculated at plus
domestic bottle-grade PET price in China fell Yuan 50/ $63.36/mt compared to plus $28.58/mt in the previous week.
mt from last week to Yuan 9,375/mt Wednesday. But PET In related news, South Korea announced that it will impose
producers were still reluctant to reduce their offers. South an anti-dumping tariff on PET film imports from Japan. The
Korean producers decided to take a wait-and-see stand 5.95% duty will be imposed for the next five years as local
following a holiday on Monday, while China-origin cargoes manufacturers are being undercut by the cheaper imports,
were heard offered in the high-$1,200s/mt FOB China. the Korea Trade Commission said in a statement.

Polymer Feedstocks: Olefins

Polymer Feedstocks – Ethylene Polymer Feedstocks – Ethylene Glycol Assessments (cont...)
Europe US (¢/lb)
Spot Friday Weekly Average Spot Friday
FD NWE (Eur/mt) 935.00-939.00 964.600-968.600 FOB USG A/F* 45.00-46.00
CIF NWE ($/mt) 1175.00-1179.00 1233.400-1237.400
CIF MED ($/mt) 1245.00-1249.00 – Fiber Grade Monthly Contract Price (SEP ): 48.60-49.10 FOB USG
Asia ($/mt)
Monthly Contract Price (Sep): 1150.00-1150.00 FD NWE (Eur/mt)
US (¢/lb) Spot Friday Weekly Average
CFR China 967-969 972.6-974.6
Spot Friday Weekly Average
CFR SE Asia 970-972 (1) –
FD USG M1 SEP 67.750-68.250 69.000-69.500
FD USG M2 OCT 66.250-66.750 67.500-68.000
MEG CP Nomination (SEP) – CFR Asia
MEGlobal: 1180 Sabic: 1150 Shell: 1160
Posted Contract Price (SEP ): NA-NA Delivered
Net Contract Price (SEP ): NA-NA Delivered (1) CFR SE Asia = CFR Indonesia.Note: *A/F denotes anti-freeze grade Asian ethylene glycol
assessments are basis L/C 90 days.
Asia ($/mt)
Spot Friday Weekly Average Polymer Feedstocks – Butadiene
FOB Korea 1489-1491 –
CFR SE Asia 1504-1506 1496.0-1498.0 Europe
CFR NE Asia 1529-1531 1529.0-1531.0 Spot Friday Weekly Average
Asian ethylene spot assessments reflect LC 0-30 days. CFR SEA = CFR Indonesia/Thailand. FD NWE (Eur/mt) 889.00-891.00 889.000-891.000
FOB Rdam ($/mt) 1129.00-1131.00 1129.000-1131.000
Polymer Feedstocks – Propylene
Butadiene Monthly Contract FD NWE SEP: 955.00-955.00 (Eur/mt)
Europe (Eur/mt)
US (¢/lb)
Poly Grade Spot Friday Weekly Average
FD NWE 1059.00-1063.00 1032.600-1036.600 Spot Friday
CIF NWE 1059.00-1063.00 1032.600-1036.600 CIF USG 57.50-58.50
Chem Grade Spot Friday Weekly Average
FD NWE 936.50-941.50 – Monthly Contract Price (Sep ) 56.00-62.00
CIF NWE 906.50-911.50 – Asia ($/mt)
Poly Grade Monthly Contract Price (Sep): 1105.00-1105.00
FOB Korea 1449-1451 1404-1406
US (¢/lb) CFR Taiwan 1509-1511
Spot Friday Weekly Average CFR SE Asia 1469-1471 (1)
dlvd USG dlvd USG CFR China 1499-1501 1446-1448
Ref Grade 57.250-57.750 57.375-57.875
(1) CFR SE Asia = CFR Indonesia. *A/F denotes anti-freeze grade.
Poly Grade 69.750-70.250 –
Chem Grade 66.750-67.250 –
Poly Grade Contract Price (SEP ): NA-NA Delivered Platts Global Ethylene Prices ($/mt)
Chem Grade Contract Price (SEP ): NA-NA Delivered
Asia ($/mt)
1600
FOB Korea 1319-1321 1319.0-1321.0 1500
CFR Taiwan 1349-1351 –
CFR SE Asia 1264-1266 –
1400
FOB Japan 1284-1286 –
CFR China 1369-1371 1375.00-1377.00
1300
Asian ethylene spot assessments reflect LC 0-30 days. CFR SEA = CFR Indonesia/Thailand.
1200
Polymer Feedstocks – Ethylene Glycol Assessments
Europe 1100
Spot Friday CFR FE Asia FD NWE FAS Houston
1000
FCA NWE T2 (Eur/mt) 790.00-800.00
FD NWE T2 (Eur/mt) 820.00-830.00 15-Apr 12-May 05-Jun 30-Jun 23-Jul 18-Aug 10-Sep
CIF NWE T2 (Eur/mt) 785.00-795.00
CIF NWE T2 ($/mt) 1017.00-1027.00
Notes: All olefin prices reflect assessments at close of previous Friday.
Monthly Contract Price (Sep ) – (Eur/mt) NA-NA

Ethylene pipeline system in Louisiana. On Wednesday, September

was heard traded at 72.50 cents MtB-other and 73 cents/
Europe lb MtB-other, while three deals were heard concluded at
European ethylene spot prices fell by Eur39/mt this week, 69.5-70.75 cents/lb MtB Wms. On Tuesday, September was
to close Friday at Eur937/mt FD NWE, due to widespread heard traded at 70.5 cents/lb MtB Wms and 70.75 cents/
availability sparked by seasonally poor downstream lb MtB Wms. In contracts, US ethylene contract prices for
demand. One buyer said: “The market is so long people August were starting to settle Wednesday at a 1.75 cents/
don’t know what to do [with the product].” He added lb increase, sources said. The net transaction price (NTP)
that poor downstream demand meant ethylene prices for August was heard settling at 51.25 cents/lb, sources
were considered too high, which in turn reduced demand. said, which would push the posted price for August to
One trader said poor demand was attributed to caution 55.75 cents/lb, Platts data shows. At least one producer
in trading activity as market participants awaited further was heard seeking a 3-cent/lb increase for August prices,
price developments before purchasing. Two spot trades which in turn could lead to prolonged negotiations and
were heard this week. One was at MCP -17% FD NWE for a 2-month settlement, one market source said. If the NTP
4,000 mt, and this was confirmed by the buyer. A second settlement is accepted market-wide, it would bring contract
trade was heard done at Eur935/mt for 3,000 mt, FD prices to their highest since April 2012 level of 55.25 cents/
NWE, and was confirmed by both buyer and seller. CIF lb, according to Platts data. In production, Boardwalk
NWE prices also fell, to close at $1,177/mt as abundant Pipeline Partners announced Wednesday that it will acquire
availability pulled prices lower. In terms of downstream the Evangeline pipeline system from Chevron Pipe Line
demand, European spot low density polyethylene prices fell Company for $295 million in cash, subject to customary
this week, as the impact of the ethylene contract price fall adjustments. The system is a 176-mile pipeline that
weighed on prices, closing Wednesday at Eur1,280/mt FD connects Texas and Louisiana and is capable of transferring
NWE. There was a wait-and-see approach from customers, near 2.6 billion lbs/yr of ethylene. “The acquisition is
according to a number of sources, as expectation of a expected to close in the fourth quarter of 2014, subject
further price drop hampered trading activity. to customary closing conditions,” Boardwalk said in the
Wednesday statement. A portion of the Evangeline line was
United States down for a part of 2013 and well into 2014 for leak repairs
US spot ethylene slipped 3 cents week on week, assessed that constrained large volumes of ethylene in Texas. The
Friday at 67.75-68.25 cents/lb FD USG for September disruption, sources said, contributed to price differentials
delivery, marking its fourth consecutive day of declines. between the two states to reach 18 cents/lb.
October deliveries were assessed 1.5 cents lower than
September at 66.25-66.75 cents/lb FD USG, as large volume Latin America
buyers appeared to be absent from markets, sources said. Brazilian producer Braskem is set to begin a 35-day
On September 2, Platts changed the timing basis reflected turnaround Saturday at its petrochemical complex in Sao
in its daily US spot ethylene assessment to current delivery Paulo state, the company said this week. The gas- and
month (M1) and next month (M2) from the 3- to 30-day naphtha-fed ethylene unit, which has a production capacity
basis. The downward move in ethylene spot prices started of 700,000 mt/year, is scheduled to restart October 10, the
in early in the week, after Dow Chemical restarted its company said in an email. Downstream market participants
LHC #8 steam cracker at its complex in Freeport, Texas, said they would be watching prices and availability closely,
market sources with knowledge of company operations as polyethylene supply could be impacted, as previously
said Tuesday. Additionally, Westlake Chemical restarted hinted by Braskem. The stoppage was likely to limit ethylene
its Petro-1 steam cracker in Lake Charles, Louisiana, exports from Brazil. “The probability to export will decrease,”
a company source familiar with its operations said a source with knowledge of company operations said. No
Wednesday. Lastly, sources talked of a delay of the five- spot trades, bids or offers were heard for the week in the
week turnaround starting at ExxonMobil’s Baytown, Texas region, and no exports were heard from Brazil, Argentina
steam cracker in early September. A company source with or Mexico, the three major ethylene producing countries.
knowledge of operations said that the planned turnaround Regional participants following international markets saw
is yet to start. The source was unable to provide exact European spot ethylene prices fall by Eur39/mt ($49/mt)
duration or start date for the turnaround on Friday. The this week, to close Friday at Eur937/mt FD NWE($1,214/mt),
plant has an ethylene production capacity of 960,000 mt/ due to widespread availability. Meanwhile, US spot ethylene
year. In markets, September was heard traded five times on declined for the fourth consecutive day, assessed Friday at
Friday at 68 cents/lb Mont Belvieu Williams pipeline basis, 67.75-68.25 cents/lb FD USG for September delivery.
after bid/offer ranges were heard at 67.5-71 cents/lb MtB
Wms. On Thursday, September was heard traded twice at Asia
68.5 cents/lb Mont Belvieu Williams pipeline basis, after Asian ethylene was assessed unchanged week on week
offers were heard at 69.25 cents/lb MtB Wms, and 74 cents/ and day on day at $1,530/mt CFR Northeast Asia.
lb for product delivered via MtB-other and via the Choctaw Meanwhile, the CFR Southeast Asia marker rose $10/

mt day on day and week on week to be assessed $1,505/ United States

mt. Buying indications were heard at $1,480-1,500/ September US monoethylene glycol contracts for fiber and
mt CFR China against offers at over $1,550/mt CFR PET makers were assessed Friday at 48.85 cents/lb ($1,077/
China. A 3,000-3,500 mt domestic cargo was heard sold mt) based on producer discounts for large-volume buyers,
at $1,520/mt to a styrene monomer producer Monday. up 0.80 cent/lb from August. US producers announced
European traders were heard eyeing opportunities to 1-2 cents/lb increases for the month, sources said, with
move European-origin cargoes to Asia amid falling prices MEGlobal heard setting its North American benchmark
in the West of Suez. However, the arbitrage window price at 56 cents/lb, up 1 cent from August. MEGlobal
has yet to be opened, said trade sources. An 8,000- nominated its September MEG Asian Contract Price at
10,000 mt Europe-origin cargo for second-half October $1,180/mt CFR main port, up $30/mt from August, while
arrival was heard offered at $1,570-1,580/mt CFR China. Shell increased its ACP $20/mt to $1,160/mt CFR. Sabic’s
But buying interest for this cargo was poor as most ACP was unchanged for the month at $1,150/mt CFR
participants expected prices to soften in October with main China ports. US spot MEG prices were assessed Friday
plants coming back from turnarounds during the month. at 45.00-46.00 cents/lb FOB USG, flat week on week, as
In downstream news, China’s Tianjin Dagu Chemical is sources said high ethylene prices were helping to keep
likely to run its 500,000 mt/year SM plant in Tianjin at MEG up despite soft demand. No confirmed deals were
about 60% of capacity after restarting it next week amid heard Friday. Multiple sources pegged prices at 45-46 cents/
weak demand for SM from China, a source close to the lb, with some spot buyers from the antifreeze segment
company said Friday. The plant was shut August 20 for heard looking for product at or below 45 cents/lb. “Not
scheduled maintenance. In Southeast Asia, an end-user sure they’re getting it, but they are not in any sort of panic
issued a tender Wednesday seeking a 3,000-5,000 mt mode,” a trader source said. Another market source said
end-September/early October arrival cargo. The buyer finding MEG below 46 cents/lb was possible if one of the
canceled the buy tender as offers received were too high, parties had a contract price formula weighted heavily on
a company source said Friday. The lowest offer was Asian spot prices. Asian prices were assessed Friday at $968/
around mid-$1,500s/mt CFR Southeast Asia. Supply is mt CFR China and $971/mt CFR Southeast Asia, down
tight in the region amid upcoming turnarounds. Shell $13/mt week on week. Sources said overall MEG demand
Singapore plans to shut its naphtha-fed steam cracker continued to be impacted by lower PTA availability, which
at Pulau Bukom from end-September for three months was leading to reduced US PET production. While there
for debottlenecking. The steam cracker can currently has been anticipation among sources that additional MEG
produce 800,000 mt/year of ethylene, 450,000 mt/year could eventually head to Brazil or Mexico for increased PET
of propylene, 155,000 mt/year of butadiene and 230,000 production to help offset lost US output, sources said they
mt/year of benzene and after the debottlenecking had seen no evidence of that yet. Spot ethylene prices were
will be able to produce another 160,000 mt/year of still in the high-60s cents/lb range, which sources said gave
ethylene, 90,000 mt/year of propylene, 31,000 mt/year of producers little incentive to make spot MEG. September
butadiene and 46,000 mt/year of benzene. spot ethylene was assessed Friday at 68 cents/lb, down 3
cents/lb week on week. Sources said planned maintenances
and repairs by multiple North American producers were also
Ethylene Glycol helping to keep inventories from getting too long.
Europe Asia
European monethylene glycol prices remained stable Asian monoethylene glycol continued to slide this week,
this week, closing unchanged Friday at Eur795/mt FCA falling $13/mt week on week to be assessed at $968/mt
NWE, as buyers limited purchasing while they awaited CFR China and $971/mt CFR Southeast Asia on Friday.
conclusions to the contract price negotiations, while Traders were trying to clear their stocks of prompt arrival
sellers did not reduce offer levels. One buyer said that cargoes by selling them down, while some were even
demand was flat because of the lack of improvement short-selling cargoes for first-half October, said market
in antifreeze demand. Antifreeze demand had not sources. Sentiment had been persistently negative amid
significantly improved as the mild winter meant that solid a sluggish downstream polyester market, with sales to
inventory levels remained in the market, one producer production ratios of polyester filament and chips heard at
said. Some sources commented on the premium prices in around 65%. Cargoes for arrival and loading in second-
the south compared to NWE, and that this was due to the half September were heard traded down progressively
lack of supply options in the region. Furthermore, one from $983-972/mt up to mid-week, before falling further
producer said that demand had picked up in the south on Friday to $970/mt. Meanwhile, traders were heard
as market participants emerged from the holiday period. to be short-selling first-half October cargoes, with deals
In the DEG market, prices were assessed stable week- heard on Friday for 1,000-mt parcels of Asian origin at
on-week at Eur1,125/mt FCA NWE, as demand failed to $967/mt and $968/mt CFR China. MEG inventory in East
significantly improve attributed to the seasonal lull. China was at 919,000 mt, down from 952,000 mt last

week, market sources said. Despite the drop in inventory, was heard concluded at 69 cents/lb MtB-pipe. Spot bids,
traders said there was little impact on falling prices, offers or trades for chemical-grade propylene were not
which are mainly due to the bearish polyester demand heard for the week. Therefore, the assessment also slipped
and weak polyester prices. In contract news, state-owned a half-cent for the week, assessed at 66.75-67.25 cents/
China Petroleum and Chemical Corp., or Sinopec, lb to maintain a 3-cent/lb discount to PGP. In contracts,
nominated its September Contract Price for MEG at Shell Chemicals nominated its September CGP contract
Yuan 7,700/mt, unchanged from its August settlement, a price at 71 cents/lb, itself a rollover from August, sources
market source said Friday. The September CP nomination said Thursday. The nomination followed ExxonMobil
is equivalent to around $1,014/mt on an import parity Chemical’s nomination for PGP and CGP September
basis. Sinopec settled August contracts at Yuan 7,700/mt contract prices, which called for a 1-cent increase at
ex-tank, down Yuan 200/mt from its August nominated 73.5 cents/lb and 72 cents/lb, respectively, multiple
contract price at Yuan 7,900/mt. Additionally, Shell sources said last week. Market participants expected
has nominated its September ACP at $1,160/mt CFR the September CPs would decline as much as 1-cent/lb,
China main ports, while earlier MEGlobal nominated following weak demand from polypropylene producers
its September ACP at $1,180/mt CFR China main ports, and refinery-grade propylene prices that were hovering
and Saudi Arabia’s Sabic nominated its September ACP at below the 60 cents/lb level. US propylene contracts are
$1,150/mt CFR China main ports. settled on a monthly basis between major producers
and buyers. The process includes price nominations by
producers and subsequent negotiations with customers.
Propylene The contract price is generally 2-3 cents above the
spot PGP prices seen at the end of the prior month
Europe and the beginning of the month set for negotiations.
Propylene spot prices rose by Eur33/mt this week, Additionally, RGP pricing is also considered, as that is the
to close Friday at Eur1,061/mt FD NWE, as demand source of a large volume of PGP.
improved following buyers returning to the market on
the settlement of the September propylene contract. Latin America
One trader said that propylene availability was not Propylene pricing in the Mexican domestic market was
particularly good, as crackers were not running at high steady to higher week on week despite a hiccup at a
levels due to the abundant availability of ethylene in the refinery, sources said this week. Pemex Petroquimica was
market. But a producer said that availability was good heard pricing chemical-grade propylene at $1,349/mt,
and that increased requests for material played a larger up some $4/mt week on week. Polymer-grade propylene
role in price movements this week. Three spot trades was stable for the period at $1,593/mt ($72.25 cents/lb), a
were heard done this week. Two spot trades were heard source familiar with company pricing said. Petrochemical
done at MCP 4% CIF NWE for 2,00 mt each, and the plants operated by Pemex were heard running at capacity,
buyer confirmed. In the CGP market, a spot trade was but a compressor issue halted production at Pemex’s
heard done at MCP -15% FD NWE for 1,000 mt, and the Salina Cruz refinery, a source with knowledge of company
seller confirmed. CGP FD NWE prices were assessed at operations said earlier this week. The company aimed to
Eur939/mt. In downstream news, PP spot prices fell this resolve the issue by the weekend, the source said. In Brazil,
week, following the decline in the propylene contract Braskem and state-owned Petrobras this week extended
price. Demand continued to be described as weak. The their contract by which Petrobras supplies Braskem with
spot acrylonitrile market in Europe fell $10/mt this week, feedstock naphtha for petrochemical production until
to be assessed at $2,060/mt CIF Med, prices declining on February 2015. The parties have been trying to agree on a
the back of poorer demand and a fall in feedstock costs. new contract for months, with Petrobras aiming to raise
Poor demand was attributed to customers waiting for prices on higher costs associated with having to import the
further price developments, according to one trader. feedstock, sources said this week. The temporary agreement
retains current terms of the most recent contract. Once a
United States new contract is finalized, pricing will be adjusted retroactive
US spot refinery-grade propylene declined a half-cent to September 1, Braskem said. “The extension imminently
week on week, assessed Friday at 57.25-57.75 cents/lb prevents Brazilian chemical and petrochemical sectors from
delivered, following thin trade and similar downward closing,” Braskem said in a statement provided to Platts.
move in polymer-grade propylene prices. No RGP deals Participants keeping an eye on the international markets
or offers were heard throughout the week, while buying saw the Northwest European September propylene spot
interest was firmly set throughout the week at 56.5 cents/ prices rise by Eur33/mt ($42/mt) this week, to close Friday
lb MtB-pipe for September. Spot PGP declined a half-cent, at Eur1,061/mt ($1,375/mt) FD NEW on improved demand.
assessed Friday at 69.75-70.25 cents/lb FD USG, following In the US, spot polymer-grade propylene dipped 0.50 cents/
September bids at 69 cents/lb MtB-pipe and Thursday lb ($11/mt) to 70 cents/lb ($1,543/mt) amid strong demand
offers at 70.75-71 cents/lb MtB-pipe. One November deal from downstream polypropylene.

Asia Butadiene
The CFR China propylene marker continued to decline this
week, falling $5/mt week on week to be assessed at $1,370/ Europe
mt as fresh supplies are expected to hit the market end- Northwest European butadiene prices were assessed at
September and first-half October. Offers were heard around $1,130/mt FOB Rotterdam and Eur890/mt FD NWE,
$1,380/mt CFR China. According to end-users bids were unchanged from last week, on a balanced market. Sources
at a maximum of $1,370/mt CFR China. A China-based reported that a combination of limited spot supply and
buyer said bid for an H2 October-arrival cargo at $1,350/ weak demand for export on limited arbitrage opportunities
mt, but this was not within the Platts Methodology which kept prices rangebound. In addition a recovery in
assesses cargoes 20-40 days forward, which is September Asian prices also kept NWE sellers out of the market in
25-October 15. Deals were heard done at $1,370/mt for CFR anticipation that export demand might return. Although
East China cargoes and at $1,380/mt for CFR North China. outright offers remained limited, one producer said that
Meanwhile, Ningbo Haiyue New Materials Co. has started notionally the market was being offered at around $1,150/
commercial production of polymer-grade propylene at its mt but no buy interest was was formally seen. The Asian
Ningbo propane dehydrogenation, or PDH plant in China’s butadiene market shot up $70-90/mt week on week Friday,
northeastern Zhejiang province, a source close to the matter as buyers were actively seeking spot cargoes amid tight
said Friday. The plant has a propylene capacity of 600,000 supplies as several butadiene plants are due to be shut in
mt/year. “Purity of 99.6-99.7% was achieved Wednesday. the region for annual maintenance, said trade sources.
They already have 1,000 mt of inventory and they are “Asian prices are increasing, so we expect increasing spot
building it up,” the source said. “Maybe they will start values in the next future,” a European producer said. Some
selling next week. They will be raising production [rates] consumer sources disagreed with this. however with one
next week and we will see a clearer picture then,” the source saying that Asian prices slumped by around 18% in August
added. Haiyue was using the same technology as Tianjin alone, which was indicative of weak derivative demand,
Bohai, which started up a PDH plant last year, the source cheaper natural rubber prices and thus ample supply.
said. “Tianjin Bohai is helping Haiyue and that is why it “Europe has to export as soon as they can. I know that Asia
was easier for them to get on-spec product,” the source is coming back up but it has recently received 20,000 mt
added. Tianjin’s PDH plant in China’s northeastern city of from the rest of the world. I don’t see why Europe should
Tianjin started full operations last November. Platts at the be above Asia,” the buyer said. Another shared this view
time reported it was China’s first PDH plant and the biggest saying he expected prices to fall as heading into the fourth
single PDH unit in the world with a capacity to produce quarter. “We might see a drop in spot going forward. It is
600,000 mt/year of propylene. Haiyue is expected to offer an artificially high market as there are no exports. They
all its propylene into China’s domestic market. It does not cannot keep the molecules for long as they will (otherwise)
have any derivative plants. Haiyue could not be reached have to reduce the operating rates in the cracker,” the
for comment. A C3 end-user said: “We don’t want to rush second consumer argued. This was unlikely to happen
buying yet. We bought some but we don’t want to buy a lot since ethylene and polyethylene economics underpinned
[because] maybe October prices will decrease further after cracker operating rates at around 80%, too high for crude
Haiyue achieves 100% run rates.” A second end-user said C4 market fundamentals, sources said. The Northwest
late Friday that Haiyue had began to “sell C3 to customers European crude C4 factor was assessed at flat to naphtha
nearby.” Taiwan’s state-owned CPC Corp. sold about 10,000 on the back of stable domestic butadiene prices this week.
mt of propylene Wednesday via private negotiations, With naphtha cargoes assessed by Platts at $858.25/mt, the
market participants said Thursday. The cargoes are expected outright C4 price was assessed at the same level. Sources
to load from Kaohsiung port in second-half September reported that despite the lack of available spot molecules,
and first-half October, a trader said. According to trade both local and export C4 demand remained weak with
sources, CPC sold the cargo at $1,320/mt FOB Kaohsiung. sources reporting reduced butadiene extraction rates.
“One cargo was sold to Sinopec HK, one to Sanyuan, one Sources continued to price C4 cargoes at a value of naphtha
to Jinshan, one to Marubeni. Volume for each could range flat this week, with no trade reported. The Northwest
at 1,500-2,300 mt. Also, Mitsui got one 2,500-mt cargo,” European butadiene prices were assessed at $1,130/mt FOB
one trader said late Friday. CPC could not be reached for Rotterdam and Eur890/mt FD NWE, unchanged from last
a comment. The prices were lower than CPC’s last trades week on a balanced market. Some sources felt that stability
done in second-half August when it sold about 4,300 mt could remain at current levels through until the end of
at $1,350-1,380/mt, according to trade sources. CPC rarely the year. Reduced cracker operating rates, which could
sells propylene on a spot basis, but started doing so after a prove supportive to firmer pricing ,were unlikely to happen
July 31 underground pipeline explosion in Kaohsiung and since ethylene and polyethylene economics underpinned
the subsequent shutdown of its downstream customer Lee cracker operating rates at around 80%, too high for crude
Chang Yung Chemical Industry Corp.’s 400,000 mt/year C4 market fundamentals, sources said. The European
polypropylene plant. Since August 1, CPC has sold about raffinate-1 factor was assessed at 1.21 this week on stable
27,800 mt of propylene on spot basis. crude C4 and butadiene sentiment. The factor held up

despite a fall in the value of MTBE versus eurobob gasoline. while downstream demand in the acrylonitrile-butadiene-
Sources maintained that molecules were still pricing above styrene market was improving due to seasonal demand in
the 1.20 mark. With naphtha cargoes assessed by Platts the automotive industry, sources said. In contracts, the
at $858.25/mt, the outright raffinate-1 price was assessed September US butadiene contract price settled 4 cents/lb
at $1,038.48/mt, down $16.94/mt from last week. The ($88/mt) lower than August at a 56-62 cents/lb ($1,235-
European MTBE factor was assessed at 1.2030, down from $1,367/mt) split, sources said. ExxonMobil settled 4 cents/
last week’s 2014 high of 1.28. The outright MTBE price lb lower than August at 62 cents/lb, and LyondellBasell,
was assessed at $1,133.50/mt FOB ARA Friday. Blenders Shell Chemicals and TPC Group also settled down 4 cents/
were said to be looking for material on Friday, sources lb at 56 cents/lb, sources said. Producer confirmation
said. Demand was also seen strengthening for T1 MTBE, on the settlements were not available by the time of
intended for blending for export to West Africa, a European publication. The settlements are void of any discounts or
trader said on Friday. A second trader source found the adders that producers might include, sources said.
market difficult to read at the moment: “We are changing
from summer to winter spec, so it much depends on where Latin America
gasoline is going.” Even though winter spec gasoline season Butadiene production in Brazil will be curtailed in the
is approaching, refinery maintenance in NWE has kept the short term as Braskem plans to stop its Sao Paulo steam
physical summer gasoline market strong, strengthening cracker for maintenance beginning Saturday. The stoppage
demand for high octane blending components such as at the 90,000 mt/year butadiene capacity plant is to
MTBE. The September/October gasoline swap spread also last 35 days, with a scheduled end date of October 10,
discourages holding winter volumes in tank due to the the company said this week. Braskem is Brazil’s biggest
steep backwardation as the seasonality switch is taken in producer of butadiene and the region?s main exporter.
account. A report by BNP Paribas showed that gasoline Spot markets in the region continued to be quiet, with
stocks in ARA went down 800,000 barrels for the week no exports from Brazil heard and no cargoes unloaded
ending September 3, a 12% change. The gasoline barge at Mexico?s Altamira, per port records. In international
market was assessed at $942.25/mt markets, the US butadiene spot assessment trended lower,
falling 2 cents/lb ($44/mt) on the week to 58 cents/
United States lb ($1,279/mt) CIF USG on continued weak demand.
US spot butadiene continued to trend lower, falling 2 Northwest European butadiene was flat week on week at
cents on the week to an assessment at a nine-month low Eur890/mt FD NWE. Regional market players keep a close
of 58 cents/lb CIF USG on continued weak demand. The eye on both the US and the Northwest European markers.
assessment was at its lowest since December 6, 2013,
when it was at the same level, according to Platts data. Asia
No import bids, offers or deals were heard this week The Asian butadiene market shot up $70-90/mt week on
as the arbitrage from Europe and Asia are both closed, week Friday, as buyers were actively seeking spot cargoes
sources said. The import market was pegged by sources amid tight supplies as several butadiene plants are due to
in the high-50s cents/lb, but sources said the butadiene be shut in the region for annual maintenance, said trade
market overall was quiet. In the domestic market, offers sources. The most active buyers in the market were South
were heard in the low-60s for September throughout Korean end-users. Some trading sources said a Southeast
the week, but on Friday, September was heard offered in Asia-origin cargo was sold at $1,500/mt or over, basis CFR
the morning at 59 cents/lb FOB pipe/barge/rail before South Korea this week. On an FOB Southeast Asia basis,
declining to 56 cents/lb FOB pipe/barge/rail. October was the traded value is equivalent to mid- to high-$1,400s/
heard offered in the domestic market at 61 cents/lb FOB mt. A trader also said a spot cargo was also sold in the
pipe/barge/rail Friday morning before dropping 1 cent to low-$1,500s/mt CFR South Korea. Supplies in South Korea
an offer at 60 cents/lb later in the day. The spot market were heard to be tight ahead of the turnaround season for
has been moving lower as tanks continued to be heard butadiene plants. No deepsea cargoes were offered in the
full and buying interest was not expected to improve until Asian spot market this week. The FOB Korea butadiene
October at the earliest, with several sources saying demand marker was assessed at $1,450/mt, up $70/mt from the
might not improve until the beginning of next year, previous week. The CFR China butadiene marker was also
which could lead to even lower prices. Large buyers were assessed up $80/mt at $1,500/mt CFR China Friday. Sellers
still heard to be good on supply, while smaller buyers were were reluctant to offer spot cargoes on a CFR China basis
the only ones looking to buy and only domestic product this week as they were able to achieve higher prices selling
was being sold, sources said. To ship product from Europe into South Korea. Buying indications were heard at $1,470-
to the US Gulf estimating freight at $220/mt, US pricing 1,480/mt CFR China, while selling indications were seen at
would need to be at $1,350/mt or around 61.25 cents/ $1,600/mt CFR China this week. The CFR Taiwan butadiene
lb CIF USG. No new imports were heard headed to the marker was assessed at $1,510/mt, up $80/mt from the
US this week. In downstream markets, derivative styrene- previous week, while the CFR Southeast Asia butadiene
butadiene rubber and SBS sectors were quiet, a source said, marker was assessed up $90/mt at $1,470/mt Friday.

But some market participants were still cautious as the assessed unchanged from the previous week at $2,020/mt
downstream market did not show much strength this week. Friday. Demand for spot SBR 1502 cargoes was limited due
For example, styrene-butadiene-rubber 1502 grade price was to a bearish natural rubber market.

Polymer Feedstocks: Aromatics

Paraxylene Polymer Feedstocks – Aromatics
Europe Weekly Average Spot*

Styrene FOB Korea ($/mt) 1503.10-1504.10
European paraxylene was flat day on day to be assessed Styrene FOB ARA ($/mt) 1547.90-1548.90
Friday at $1,190/mt FOB ARA following unchanged Styrene FOB USG (cts/lb) 68.73-69.23
assessments in Asia and the US. On a week on week on
Paraxylene FOB Korea ($/mt) 1260.30-1261.30
basis, PX in Europe was assessed down $10/mt from last
Paraxylene FOB Rdam ($/mt) 1193.60-1195.60
Friday’s $1,200/mt FOB ARA. No demand for Europe origin Paraxylene FOB USG ($/mt) 1237.50-1247.50
cargoes was heard in either of the traditional consumption
Monthly Contract Price
centers of China and the US as both these markets were
Styrene Barge FOB ARA CP (Eur/mt) (Sep) 1390.00
domestically well supplied. Globally, downstream purified Styrene Truck FCA Rdam CP (Eur/mt) (Sep) NA
phthalic acid producers were running their plants at an Styrene FOB USG (cts/lb) (Sep) 73.00-74.00
average run rate of 60% whereas PX plants were running
at an average of 80%. This difference in operation rates Paraxylene CFR Asia Average (Sep ) NA
Paraxylene FD NWE (Eur/mt) (Sep) NA
created surpluses supplies in the markets and pressured Paraxylene FOB USG (¢/lb) (Aug) 68.50-68.50(Q3)#
prices, sources said. In Asia, PX prices were assessed almost
* Average prices for week ending previous Friday. # US PX CP are typically settled retroactively,
stable at $1,255/mt FOB Korea and $1,278/mt CFR Taiwan/ prices refer to most recent settlement. To convert Cts/lb to $/mt, multiply by 22.046.
China Friday, inching up just $0.50/mt from the previous
day. In the US overnight, the product was down $10/mt
week on week Thursday at $1,240/mt FOB US Gulf Coast. US Styrenics Prices
Disappointing US jobs figures published Friday and a cut ($/mt)
in interest rates by the European Central Bank Thursday 140
resulting in a further weakening of the euro eroded the US Domestic Dlvd GPPS Styrene Spot USG
appetites of European consumers.

120
United States
US spot paraxylene prices fell $10/mt on the week to 100
$1,240/mt FOB USG, on oversupply and after Asian
paraxylene pricing moved lower. Sources pegged the market
in a range of $1,220-$1,250/mt. Asian spot PX prices 80
dropped $23/mt week on week, assessed Friday at $1,255/
mt FOB Korea and $1,278/mt CFR Taiwan/China. There 60
was interest to export product to Asia and South America 19-Feb 19-Mar 16-Apr 14-May 11-Jun 27-Aug
because of higher inventories, sources said, despite arbitrage
economics being unattractive on paper this week. The
Notes: All aromatics prices reflect assessments at close of previous Friday.
MX-PX spread was around $189/mt to end the week, based
on Platts data, which sources considered a healthy spread.
In downstream markets, sources said spot PET demand origin. A bid was heard at $1,280/mt CFR Taiwan/Ningbo/
felt solid and production was limited because of tight PTA Dalian for an Asian origin cargo, which was normalized to
supply. In contracts, the August US paraxylene contract $1,274/mt CFR Taiwan/Ningbo/Dalian of open origin that
price settled down 1.25 cents/lb ($28/mt) from July to 68.5 Platts assesses. Discussions on H1 October/H2 October time
cents/lb ($1,510/mt), sources said. The PX contract for July spread were heard at $5-10/mt, hence Platts assessed the
settled at 69.75 cents/lb, sources said. intra-month October spread at $6/mt. There were no H2
September discussions. In other news, Japan’s JX Nippon
Asia Oil and Energy and South Korea’s S-Oil nominated their
Asian paraxylene prices were assessed at $1,255/mt FOB September Asian Contract Prices for paraxylene at $1,310/
Korea and $1,278/mt CFR Taiwan/China Friday, inching mt CFR, while ExxonMobil was heard to have cut its
up $0.50/mt from the previous day. Demand for PX September ACP nomination o $1,300/mt CFR. There were
was heard to have improved, given PTA production had no settlements for August. The last-agreed ACP settlement
increased with the onset of demand for textiles in winter. was for January at $1,415/mt CFR. In plant news, Jurong
There were no bids and offers during the Platts Market Aromatics Corporation in Singapore is understood to have
on Close assessment process. Off-screen during the Platts started commissioning its new aromatics plant, sources
MOC assessment process, an offer for a H1 October delivery close to the company said. The company source declined
cargo was heard at $1,285/mt CFR Taiwan/China, of open to comment. Asian isomer-grade mixed xylene prices

were assessed at $1,079/mt FOB Korea and $1,099/mt CFR benzene which also marked a four-month low. The 5-30
Taiwan Friday, with buyers and sellers remaining pessimistic day CIF ARA benzene benchmark shed $12.50/mt, to
about near-term trading amid uncertainties over the startup be assessed at $1,305/mt, leaving the styrene/benzene
dates of new downstream paraxylene plants. Southeast spread at $220/mt. Styrene weakness in Europe is being
Asia weekly prices was assessed down by $17/mt at $1,105/ compounded by EPS, where expectations for a post-summer
mt CFR SE Asia. Traders said Southeast Asia was traded at resurgence have not yet transpired. “September is [typically]
premiums of up to $26/mt over Taiwan based on freight a good month for EPS but it looks like it’s not there,” said
differentials between South Korea to Taiwan and South a source, adding that he was not upbeat about the outlook
Korea to Southeast Asia. Buyers however, said contract for Q3. EPS producers said the bulk of the weakness in
differentials were between $9-12/mt higher than Taiwan. consumption stemmed from an overall softness in large,
No bids or offers were registered during the Platts Market on developed European markets. “We detect that the markets
Close assessment process. Off-screen, bids were heard for H2 that are slowing down the most are the most developed
September and October loading at $1,065/mt FOB Korea, markets like Germany, Switzerland, Austria. Things are
for a 3,000 mt cargo with letter of credit of 30 days of reasonable in the East [of Europe], and not any worse in the
Asia origin. An offer for any October loading was heard at Med, it’s the big markets that are not picking up.” Bid-offer
$1,090/mt FOB Korea for a 3,000 mt cargo of letter of credit indications in the market were in a range of $1,500-1,540/
30 days of Asia origin. An offer for any October delivery was mt FOB ARA for September- and October-loading barges. No
heard at $1,100/mt CFR Taiwan. On a side note, an offer of trades were reported. Globally, Styrene prices also continued
$1,130/mt CFR East China for 3,000 mt for H2 September, a downward trend on Friday. Asian styrene monomer fell
with a letter of credit of 90 days, would work out to around $37/mt week on week to $1,479/mt FOB Korea and $1,505/
$1,125/mt CFR East China on a 30 days’ credit note. China mt CFR China, as demand in China remained low and
inventories have been heard to be low at 57,000 mt in the sentiment bearish. FOB US Gulf Styrene 3-30 day prices
east and around 6,000 mt in the south. This represented a were assessed at 68.75-69.25 (cents/lb) ($1521.38/mt)
2% drop in the east and a 54% drop in the south from a meaning the arbitrage to Europe remained closed.
week ago. Meanwhile, in the longer term, outlook for MX
remained bullish from the supply side. Asian MX has been United States
shown to be net short, importing around 800,000 mt/year US spot styrene fell to its lowest level in over 10 months,
last year, largely from US, sources said. Year-to-date statistics assessed Friday at 68.70 cents/lb FOB USG, a drop of
were not yet available. There were new capacities build but 0.80 cent on the week, on lower feedstock benzene. The
mainly to serve new PX plants in China, sources added. The assessment was at its lowest since October 23, 2013, when it
only plant which was able to supply free molecules into the was at 68.50 cents/lb FOB USG, according to Platts data. No
spot market was Japanese Showa Shell’s 200,000 mt/year firm bids or offers were heard this week and no deals were
MX unit in Yokkaichi in 2016 and the Dalian West Pacific heard on the week. Notional bids would be at 67 cents/lb
plant in northeast China’s Dalian in end-2014, observers and lower, sources said, while notional offers would at least
said. MX dynamics had been largely dependent on be in the low-70s cents/lb despite lower spot and contract
chemical usage, paraxylene, as it has more margin profits benzene. The higher offers would be from producers using
when channeled to PX production. However the latter ethylbenzene processes for making styrene because of
is influenced by purified terephthalic acid/polyethylene higher variable costs, while a producer using a propylene
terephthalate, and the textile industry bearish on back of oxide-styrene monomer process might be able to offer at
huge clothing inventories and sluggish economy. The new a lower price because variable costs were heard lower for
PX capacities in 2014 were heard to require additional that process. Arbitrage opportunities to Europe and Asia
200,000 mt/year of MX consumption, sources said. The remained closed this week, sources said, but supply was
blendstock demand for MX will have to depend on general heard less available as most producers were running reduced
economy and versus competing products such as toluene due to poor margins caused by higher feedstocks benzene
and ethanol, sources said. and ethylene prices. Westlake took down its Lake Charles,
Louisiana, styrene plant Monday for 4-6 weeks, sources said.
Producer confirmation on the shutdown was unavailable.
Styrene Downstream demand in polystyrene was steady to slowing
as the summer polystyrene season was ending, while
Europe acrylonitrile-butadiene-styrene demand was improving due
Northwest European styrene monomer spot prices dropped to seasonal demand in the automotive industry, sources
$15/mt Friday to levels last seen in 2012, at an assessment said. In production news, Americas Styrenics declared force
of $1,525/mt FOB ARA. Supply remains prohibitively long, majeure on all polystyrene and styrene sales, effective
and an expected construction-led resurgence in EPS demand August 1, according to separate letters the company sent
has so far failed to materialize. The last time prices were to customers. Americas Styrenics’ lone styrene facility in
seen this low was November 23, 2012 at $1,504/mt FOB the US is located in St. James, Louisiana, with a capacity
ARA. The drop in Styrene was in unison with feedstock of 2.1 billion lbs/year. Sources said this week that the force

majeure for both products was still in effect. Styrolution will confirmed, despite a decrease in inventory levels of SM.
take down its 1.7 billions lbs/year Bayport, Texas, styrene Market sources said inventory held by traders in East China
plant at the end of September for planned maintenance was down about 10,000 mt to around 150,000 mt this week,
and expected to be restarted in early November, a company while total inventory held by both end-users and traders
source said. In feedstocks, the benzene contract price for was estimated to be around 250,000 mt, down about 10,000
September settled 36-37 cents lower than August at a 469- mt from previous week as well. In Friday’s SM market,
470 cents/gal split settlement, sources said. Spot ethylene the bid-offer range for October cargoes was heard around
was assessed at 68 cents/lb FD USG. Variable costs for $1,503-1,510/mt CFR China, while November cargoes were
styrene were estimated as low as 65.35 cents/lb and as high heard offered at $1,492/mt CFR China. Domestic prices
as 73.50 cents/lb, according to Platts data Friday. for prompt cargoes in East China were heard around Yuan
10,650/mt Friday — roughly $1,446/mt on an import parity
Asia basis — down Yuan 100/mt day on day and Yuan 200/mt
Asian styrene monomer fell $37/mt week on week to week on week. Meanwhile, in plant news, China’s Tianjin
$1,479/mt FOB Korea and $1,505/mt CFR China Friday, Dagu Chemical is likely to run its 500,000 mt/year SM plant
as demand in China remained low and sentiment bearish. in Tianjin at about 60% capacity after it restarts next week,
Prices tumbled $21/mt day on day for both benchmarks. a source close to the company said Friday. The plant was
Friday’s assessed prices were the lowest since late September shut August 20 for scheduled maintenance. The source said
2012, Platts data showed. A similar downtrend was seen weak demand for SM in China was behind the decision
in other aromatics, most importantly for benzene, which to run at low rates even after the restart. SM prices have
fell $18.50/mt day on day and $40.50/mt week on week been on a downtrend since July, falling more than 8% after
to $1,228/mt FOB Korea. Sentiment and demand in China hitting a high of $1,633/mt FOB Korea and $1,658/mt CFR
remained low this week, producers, traders and end-users China on July 23, data showed.

Polymer Feedstocks: Intermediates

Purified Terephthalic Acid Polymer Feedstocks – Intermediates
Europe Weekly Spot

PTA CFR China ($/mt)* 966.0-968.0
There were no spot discussions heard on PTA market, this PTA CFR SE Asia ($/mt) 981.0-983.0
week. The PTA contract for August did not settle due to the PTA CFR South Asia ($/mt) 991.0-993.0
absence of the full PX contract settlement.
EDC CFR FE Asia ($/mt) 429-431
United States EDC
EDC
CFR SE Asia ($/mt)
FOB NWE ($/mt)
429-431
383-387
The September US PTA price remained unsettled Friday EDC FOB USG ($/mt) 365-375
as the market awaited settlement of the feedstock
VCM CFR FE Asia ($/mt) 899-901
paraxylene contract, the key variable used to set the
VCM CFR SE Asia ($/mt) 944-946
formula-derived price. The August US PTA price was VCM FOB NWE ($/mt) 754-758
heard set at 59.15 cents/lb. Spot paraxylene was assessed VCM FOB USG ($/mt) 735-745
Friday at $1,240/mt FOB USG, down $10 week on week,
Acrylonitrile CFR FE Asia ($/mt) 2044-2046**
a market source said PX contracts were likely to fall in
Acrylonitrile CFR SE Asia ($/mt) 2034-2036**
September because of lower demand, brought on by Acrylonitrile CFR South Asia ($/mt) 2054-2056**
reduced PTA production in the wake of a fire at BP’s Acrylonitrile FOB USG ($/mt) 1970-1990**
Cooper River facility that shut one of its two lines there. Acrylonitrile CIF Mediterannean ($/mt) 1998-2002**
Sources said US PTA availability remains tight because of Monthly Contract Price
the shutdown, with market talk that allocations would PTA FD NWE (Eur/mt) (Aug) NA-NA
make it difficult for PET producers to make resin above PTA Delivered USG (¢/lb)(Aug) 59.15-59.15
contractual-obligation levels. VCM Delivered USG (¢/lb)(Sep) 54.00-54.50
US domestic prices reflect transaction pricing for medium-sized customers.
* Average prices for week ending previous Friday.
Asia ** ACN prices reflect assessments at close of Tuesday
Asian purified terephthalic acid prices continued their

downward spiral, falling $18/mt week on week to be assessed Platts Asian PTA versus Paraxylene ($/mt)
at $957/mt CFR China Friday. There was no respite to the
weeks of bearish market sentiment, with both traders and ($/mt)
1600
end-users reiterating that lackluster downstream polyester
PTA CFR China
demand will continue to weigh down both polyester and PX CFR Taiwan
feedstock PTA over the next few months. There may perhaps 1400
be a slight rebound towards end-October or early November
when polyester manufacturers prepare for the seasonal Lunar
1200
New Year demand early next year. Prices fell throughout
the week, from $973/mt on Monday, to $967/mt mid-week,
and down to $957/mt CFR China by close Friday. Deals were 1000
heard at $953/mt and $955/mt CFR China Friday, and higher
during late afternoon trade at $957/mt CFR China for 1,000
mt, Asian-origin, LC 90 days for second-half September and 800
H1 October shipment. Chinese domestic PTA prices also 17-Apr 16-May 13-Jun 11-Jul 08-Aug 05-Sep
slipped throughout the week, to be assessed Yuan 150/mt
lower from a week ago at Yuan 6,930/mt Friday, equivalent Notes: All intermediates prices reflect assessments at close of Thursday,
with the exception of PTA CFR China.
to $908/mt on an import parity basis, in line with weaker
PTA futures, with September PTA futures at Yuan 6,900/mt
on the Zhengzhou Commodity Exchange. On Friday, deals September for nearly a month of planned maintenance.
were reported at Yuan 6,920-6,930/mt. In Southeast Asia, China’s Xianglu Petrochemicals will likely restart its 1.65
PTA fell $18/mt week on week to be assessed at $982/mt million mt/year PTA plant in southern China’s Xiamen from
CFR, while in India, PTA was assessed at $992/mt CFR, down mid-September, depending on the availability of power, a
$18/mt week on week. In plant news, Formosa Chemicals source close to the company said Thursday. The PTA unit
and Fibre Corp. will shut its 1.2 million mt/year PTA plant had been taken offline since July 22 due to a shortage of
at Ningbo in eastern China from September 10 for four power. Meanwhile, Japan’s Mitsubishi Chemical has shut
days of mechanical repairs, a source close to the company its 600,000 mt/year purified terephthalic acid plant at
said Thursday. Meanwhile, the 700,000 mt/yr No 3 PTA Ningbo on September 5 for around 30-35 days of planned
plant at Long Der in Taiwan will be taken offline from mid- maintenance, a source close to the company said Thursday.

Acrylonitrile Asia marker was assessed down $25/mt week on week at

$2,045/mt CFR FEA. Offers were heard at $2,050-2,060/mt
Europe CFR FEA. There were no deals concluded during the week.
Spot acrylonitrile prices maintained their descent this An end-user, however, said he had bought a cargo at $2,030/
week, falling $50/mt to be assessed at $2,000/mt CIF mt CFR FEA recently, but it could not be confirmed. In the
Med on the back of poor demand driven by expectation domestic China market notional deal levels were estimated
of a fall in prices, sources said. Tight supply remained in to be around Yuan 14,600-14,800/mt or $1,970-1,990/mt
the market caused by the maintenance at Ineos’ plant on an import parity basis. Feedstock propylene costs have
in Cologne, Germany, and Lukoil’s impending plant dropped $10/mt week on week to $1,370/mt as fresh supplies
maintenance in Saratov, southern Russia, one trader were in China from Taiwan. Last week, Taiwan’s CPC sold
said. However, the impact to the upside on prices was about 10,000 mt of propylene into the international spot
halted by the poor demand, he added. Furthermore, market. The CFR South Asia ACN marker fell in line with the
another trader said prices did not increase this week Far East Asia marker, dropping $25/mt week on week. Offers
from tight supply as the market had already factored the were heard at $2,050/mt CFR India. A buyer also said he
maintenances into price considerations. Lukoil is to shut received offers for H2 October/November arrival cargoes at
its 150,000 mt/year Saratov ACN plant for maintenance around $2,025/mt CFR South Asia, from US and Europe. The
from September 16 to November 3, a company source lower offer could not be immediately confirmed. There were
said Tuesday. The maintenance arrives following Ineos’ no deals heard done during the week. Overall, participants
210,000/mt year Cologne acrylonitrile line shutting for across the region said the market was quiet during the week
five weeks from August 28 for maintenance, a company and relatively softer compared to a week ago. South Korea
source said previously. Asian acrylonitrile prices was out on public holiday Monday and Tuesday.
continued their downward slide on lower propylene costs
and weak buying sentiment. “I am not buying cargoes
at the moment. We would like to wait and see first,” a Ethylene Dichloride / Vinyl Chloride Monomer
China based end-user said. The CFR Far East Asia marker
was assessed down $25/mt week on week at $2,045/mt Europe
CFR FEA. CFR South Asia fell in line with the Far East EDC: The Northwest Europe ethylene dichloride spot price
Asia assessment, dropping $25/mt week on week. was assessed at $385/mt FOB NWE Thursday, down $15/mt,
on falling feedstock costs and products upstream. Ethylene,
United States which makes up 28% of EDC, saw a Eur55/mt fall from
The US acrylonitrile export assessment was unchanged the August CP price to Eur1,150/mt Friday, participating
on the week as supply remained snug. A deal was heard sources said. One trader indicated prices in EDC would fall
at $1,980/mt FOB USG for 2,000 mt, but timing of the up to $20/mt as a result but this had not yet been seen in
deal was unavailable. Spot continued to be talked in the this market with very little trading activity. The nature of
$1,970-$1,990/mt FOB USG range this week. Supply was the EDC market is captive, and heavily negotiation-based,
not expected to lengthen in September as most producers as one source put it. Meanwhile upstream, NWE polyvinyl
were still running reduced, which was limiting spot chloride spot prices were assessed down Eur20/mt at Eur825/
availability in the market. Those producers running with mt freely delivered this week, also on the back of a drop
reduced rates were anticipated to continue running reduced in the September ethylene contract. Demand for PVC had
as margins have been squeezed following a 5-cent rise in picked up from August with consumers returning from
feedstock propylene contracts for August. ACN demand holiday but still not to levels seen in September in previous
was described by a source as “okay”, with downstream years, sources said. VCM: The NWE vinyl chloride monomer
demand in the nylon industry improved and downstream market remained quiet as no trades were reported, however,
demand in acrylonitrile-butadiene-styrene increasing in this too was assessed down $24/mt at $756/mt FOB NWE on
September because of stronger seasonal demand in the decreasing feedstock EDC where movement has historically
automotive industry. In propylene, nominations for the been seen as correlated and falling upstream PVC. Meanwhile
September contract were heard at a rollover to up 1 cent/lb, in Asia VCM was assessed at $900/mt CFR Far East Asia,
but market participants expect a rollover to down 1 cent/ down $5/mt week on week, and up $5/mt to $945/mt CFR
lb. ACN sources said a slight movement in propylene would Southeast Asia Thursday. A September-loading cargo was
not have much impact on ACN. August chemical-grade heard concluded at $900/mt CFR China this week. Details of
propylene contracts settled at 71 cents/lb, sources said. the deal were sketchy and could not be confirmed.
Asia United States

Asian acrylonitrile prices continued their downward slide EDC: Export prices declined $10/mt week on week,
on lower propylene costs and weak buying sentiment. “I am assessed Thursday at $365-375/mt FOB USG, as trading
not buying cargoes at the moment. We would like to wait levels were heard in the $360-380/mt FOB USG range.
and see first,” a China-based end-user said. The CFR Far East Spot offers were heard at $390/mt FOB USG, however

one trading source said current buying interest from Asia EDC into Far East Asia, further pressuring down prices. But
would netback to levels below $360/mt FOB USG. The given persistently high feedstock ethylene prices, sellers
trading source estimated freight cost to Asia at $60/mt. saw little room for prices to fall. In Southeast Asia, weak
Offers from producers were heard $20-30/mt lower from spot demand continued to keep regional producers from
the $420-430/mt FOB USG heard in prior weeks, despite offering into the market this week, no trades heard. VCM:
the strong ethylene pricing seen since the beginning of the Asian vinyl chloride monomer was assessed at $900/mt
month, however sources said that there is no motivation CFR Far East Asia, down $5/mt week on week, and up $5/
for producers to push prices another $20/mt lower to meet mt to $945/mt CFR Southeast Asia Thursday. A September-
current buying interest from Asia. In ethylene, US ethylene loading cargo was heard concluded at $900/mt CFR China
contract prices for August were starting to settle Wednesday this week. Details of the deal were sketchy and could not
at a 1.75 cent/lb increase, sources said, pushing the net be confirmed. Offers were heard at $910/mt CFR Far East
transaction price (NTP) for August to 51.25 cents/lb, sources Asia, and $880-910/mt on a FOB basis, but were met with
said. If the settlement is accepted market-wide, it would muted responses. Market participants noted weak buying
bring contract prices to their highest point since the April sentiments for VCM due to a weak downstream market.
2012 level of 55.25 cents/lb, according to Platts data. The To limit further losses, ethylene-based PVC producers were
assessment was within market participants’ expectations either running at low rates or have temporarily shut their
of an increase of up to 2.5 cents/lb, following an actively plants, curbing buying for VCM, added a Chinese source.
traded August that pushed pricing to levels last seen in In Southeast Asia, market discussions were thin as eyes
April 2012. Spot ethylene prices rose to a 28-month high were now on the PVC market. No offers were heard from
Friday, following talk of production outages, tight supply Southeast Asia producers due to a lack of spot supply. A
and covering of short positions throughout the week. Spot trade source said VCM buyers were only able to source
ethylene was assessed at 70.75-71.25 cents/lb FD USG cargoes from Far East Asia or other origins, incurring higher
Friday, its highest level since the April 9, 2012, assessment freight rates, said a trade source. Although sellers were
of 74.125-74.625 cents/lb FD USG. Spot ethylene declined pushing for higher prices on extreme tight supply, low
1.25-cent on Wednesday, assessed at 68.25-68.75 cents/lb demand was similarly suppressing prices, resulting in thin
FD USG for September delivery, while October deliveries discussions, added a seller.
were assessed 1.5 cents lower to September at 66.75-67.25
cents/lb FD USG. VCM: Spot prices declined $5/mt for
the week, assessed Thursday at $735-745/mt FOB USG, News
amid anemic market activity. No spot deals, offers or bids
were heard throughout the week. Market source pegged
Taiwan’s Ocean Plastics halts operations
trading levels around $740s FOB USG, following weaker
downstream PVC pricing and sliding VCM demand in Asia. for 2 weeks on weak PVC prices
Downstream, US export PVC prices declined $5/mt week Singapore — Taiwan’s Ocean Plastics has halted
on week, to be assessed Wednesday at $935-945/mt FAS production for the next two weeks at its 150,000 mt/year
Houston. Producer to trader offers were heard in the $950- stand-alone PVC plant at Taoyuan on falling PVC prices and
965/mt FAS Houston range, against buying ideas heard in high production costs, a source close to the company said
the $920s/mt, with deals to traders concluded in the wide Wednesday. According to the source, plant operations were
range of $930-950/mt FAS Houston. In domestic markets, stopped earlier this week for unplanned maintenance, and
OxyVinyls was the first producer to announce a 3-cent/ would operate at 80% of capacity for the rest of September.
lb price increase for October, sources said. In operations, The company had similarly halted operations for two
OxyVinyls’ Pasadena, Texas, PVC facility was operating weeks in August, and then reduced run rates to 90%. High
without any issues, one company source with knowledge feedstock VCM prices and low PVC prices were the main
of operations said Tuesday. The company briefly shutdown factors behind the temporary shutdown, the source said.
two lines after a VCM leak on August 21. Falling PVC prices were squeezing margins on high VCM
prices as Ocean Plastics was buying spot VCM for PVC
Asia production. Anticipating a further downtrend this month,
EDC: Asian ethylene dichloride dropped $9/mt on the Ocean Plastics was not exporting to India and focusing
week to be assessed at $430/mt CFR Far East Asia, $430/ instead on domestic sales, said the source. Platts last assessed
mt CFR Southeast Asia Thursday. Deep-sea cargoes were VCM CFR Far East Asia at $900/mt on September 4.
heard offered at below $450/mt to Far East Asia this week,
against counter-bids at $400/mt and below. End-users were
Serbia’s HIP-Petrohemija petchem
not seeking spot cargoes this week on high inventory,
while some were heard delaying taking delivery of term complex begins two-month maintenance
cargoes because of weak downstream production, noted London — Serbian group HIP-Petrohemija’s
a market source. With the pressure of year-end inventory petrochemical complex in Pancevo began a two-month
tax in the US, a buyer expected an influx of US origin maintenance on September 5, a spokeswoman said

Wednesday. “The reason for the stoppage of production is barrels to 5.73 million barrels, according to the EIA data.
an overhaul in Oil Refinery Pancevo installations, which US stocks of propylene for nonfuel use decreased 103,000
is the main supplier of HIP-Petrochemical with virgin barrels week on week to 3.54 million barrels. Imports
naphtha,” she said. The complex includes a 200,000 in the reporting week that ended September 5 climbed
mt/year steam cracker, a 58,000 mt/year low density 60,000 b/d to 114,000 b/d. The US imported 11,000 b/d
polyethylene plant, a 90,000 mt/year high density PE plant, more than in the same week last year, the data show.
and a 45,000 mt/year emulsion synthetic rubber plant. Gulf Coast propane at the Enterprise terminal in the
HIPP receives 95% of its virgin naphtha from the Pancevo Mont Belvieu, Texas, hub was trading at $1.06875/gal on
refinery, which is owned by NIS. Russia’s Gazprom Neft IntercontinentalExchange Wednesday morning, some
owns 56.15% of NIS. 62.5 points higher than at 3:15 pm EDT (1915 GMT)
Tuesday. Conway propane was trading at $1.065/gal on
IntercontinentalExchange, which was 12.5 points higher
US propane, propylene inventories drop
than at 3:15 pm EDT Tuesday.
for first time in over five months: EIA
Houston — US propane and propylene stocks declined
Reduced EPS run rates at Austria’s Sunpor
78,000 barrels to 76.04 million barrels in the reporting
week that ended September 5, Energy Information continue into September: source
Administration data showed Wednesday. Before the most London — Austrian polystyrene producer Sunpor
recent week, US stocks rose every week since the reporting Gesellschaft will continue to operate its two expandable
week that ended March 28. The drop in the inventory polystyrene plants at 15-20% of capacity in September,
implies that the injection season, which started in April, a company source said Wednesday, as a summer lull
is at an end, sources said. Only inventories in the Midwest in construction-led European EPS demand lingers. “We
increased, rising 638,000 barrels to a total of 26.23 million decided to take some capacity down early August by
barrels. In the previous five years, Midwest stocks declined about 15-20%,” said the source, adding that these rates
an average of 489,000 barrels in the comparable week. will continue into September on the back of a weak
Stocks in that region now stand 4.04 million barrels higher European construction sector. “I don’t think EPS is price
than in the year-ago week. In the most recent week, related, it’s demand. Fewer building projects are being
the US Gulf Coast saw the largest regional decrease in started.” Sunpor Gesellschaft’s August reduction followed
inventories, with a 601,000-barrel drop to 40.96 million notifications in July that the company would trim rates
barrels. Atlantic Coast stocks also declined, sliding 162,000 by around 6-7% on lackluster demand. The summer lull
Global Production Update

Company Location Capacity* Timing Status

Formosa Plastics Point Comfort, TX --- 23-Jul Co-polymer EOP maintained
Pinnacle Garryville, LA 450 30-Jun FM on PGP issue, 10 days
Formosa Plastics Point Comfort, TX --- 24-Jun Co-polymer EOP, mechanical
Phillips66 Linden, NJ 350 PP H1 April SD! Line A repairs, 2 weeks
Sibur Tomsk 130 H2 July TA, more than 3 weeks
ExxonMobil NDG 205 Sept TA
Borealis Burghausen 1 line end Sept. TA, for 1 month
LyondellBasell Carrington 210 Jul-14 FM
LyondellBasell Brindisi 495 June SU after FM
LyondellBasell Carrington 210 Feb. 2014 FM
SABIC Geleen 370 PP H2 Jun TA, 14 days
SABIC Geleen 250 PP H2 Jun TA, 14 days
ExxonMobil Lillebonne 180 PP May-14 FM
TVK Tiszaujvaros 180 May-14 TA, 2 weeks
Total Feluy >900 Jun-14 TA
IRPC Rayong No. 3 245 PP Aug 15 TA, 3 weeks
LCY Kaoshiung 250 PP Aug 6-9 SD No. 4 line
LCY Kaoshiung 250 PP 2-Aug RS No. 4 line
LCY Kaoshiung 400 PP 1-Aug SD No. 3 and No. 4 lines
Yangzi PC Nanjing 200 PP July 29 to end August TA
Secco Shanghai 300 PP 10-Mar TA, 2 months
Sinopec Zhenhai Ningbo 550 PP April TA, 2 months
Al Waha Jubail 450 PP 27-Aug RS
Al Waha Jubail 450 PP 17-Aug SD
Petro Rabigh Rabigh 600 PP Aug 21-22 RS
Petro Rabigh Rabigh 600 PP 9-Aug SD!
TA = scheduled turnaround; SD! = unplanned shutdown; SU = startup; DB = debottlenecking; OR = operating rate

is now extending into September. “At the end of the Subscriber notes (continued...)
spring we sensed things winding down, and we were
expecting a second demand season starting in September, AAOSS00 LB Ethylene FD USG Mo02
but its not coming,” the source said. “If nothing happens
AAOSS03 LB Ethylene FD USG Mo02 MAvg (monthly average)
in October, the year is over.” Eurostat statistics show
that seasonally adjusted production in construction AAOSS05 LB Ethylene FD USG Mo02 WAvg (weekly average)
fell 2.3% in the euro area and 0.5% in the EU28 in the
year to June. Since the beginning of August, feedstock The daily assessment will appear on PCA 870 and weekly
styrene monomer spot prices have shed $112.50 (Eur87) average will appear on PCA 301. Please direct any questions
to $1,527.50/mt FOB ARA. In May, Sunpor brought on or comments to petchems@platts.com with a copy to
pricegroup@platts.com. Please provide a clear indication if
stream its newly expanded EPS plant in Radleberg of
comments are intended for publication by Platts for public
140,000 mt/year, while production capacity at the Polten
viewing. Platts will consider all comments received and will
site remained at 90,000 mt/year. EPS production is a
make these comments available on request.
batch process, with a turnaround time of two to three
days for increasing run rates, the source said.
POLYMERSCAN Volume 37 / Issue 36 / September 10, 2014
Editorial: Sydney +61-2-9255-9842. Singapore +65-6530-6584. Tokyo +81-3-4550-8837. London +44-20-7176-6264. New York +1-212-904-3070. Houston +1-713-658-3206.
Client services information: North America: 800-PLATTS8 (800-752-8878); direct: +1-212-904-3070 Europe & Middle East: +44-20-7176-6111 Asian Pacific: +65-6530-6430
Latin America: +54-11-4121-4810, E-mail: support@platts.com
Copyright © 2014 McGraw Hill Financial. All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise
redistributed without prior written authorization from Platts. Platts is a trademark of McGraw Hill Financial. Information has been obtained from sources believed reliable. However, because
of the possibility of human or mechanical error by sources, McGraw Hill Financial or others, McGraw Hill Financial does not guarantee the accuracy, adequacy or completeness of any such
information and is not responsible for any errors or omissions or for results obtained from use of such information. See back of publication invoice for complete terms and conditions.

4th Annual 2nd Annual
NGLs Conference and Petrochemical Seminar

North American and World Markets, Demand Outlook, Infrastructure Development
September 29–October 1, 2014 • Hilton Houston Post Oak Hotel • Houston, Texas
Register by August 22nd, 2014 and SAVE up to $300!

Hear Knowledgeable Insights on Pressing NGL FOR MORE INFORMATION
and Petrochemical Issues OR TO REGISTER:
NGLs Conference: Visit us at platts.com/nglandpetchem
• NGL production dynamics — Regional price divergence; impact or call us at 866-355-2930 (toll-free in
of crude production the US) or 781-430-2100 (direct).
• Ethane — Petrochemical consumption; international demand,
pricing, and logistics For more info and speaking
opportunities, contact:
• Propane/butane — Consumer, petrochemical, and export
demand vs. supply Cynthia Rugg
• Condensate — How much is needed for Canadian diluent? tel: 781-430-2105
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PLUS — 7 Case Studies on Fractionation, Pipeline, For sponsorship opportunities,

and Terminal Development contact:
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From Industry Leadings Including:
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[PETROCHEMICALS ]

Americas Polymer Spot Price Assessments

Asian Polymer Spot Price Assessments Contents

Daily Polymer Spot Price Assessments

Polymer Spot Freight Rates ex-Middle East ($/mt) Subscriber Notes:

900 AAOSR05 will change its description from LB Ethylene FD

Copyright © 2014, McGraw Hill Financial 2

Euro Contract Assessments (Euro/mt)

LDPE G-P 1450-1455 1450-1455 1420-1425 1445-1450 1420-1425 1155-1159 1872-1878

HDPE Inj 1350-1355 1350-1355 1350-1355 1350-1355 1350-1355 1076-1080 1743-1749

PP Homo Inj 1420-1425 1420-1425 1410-1415 1420-1425 1410-1415 1131-1135 1833-1839

GPPS Net 1510-1520 1510-1520 1510-1520 1510-1520 1510-1520 1203-1211 1949-1962

ABS GP/Nat 1690-1700 — 1690-1700 1690-1700 1690-1700 1347-1354 2181-2194

PET bottle grade 1174-1180 — 1174-1180 1174-1180 1174-1180 915-919

Platts European and African Polymer Spot Price Assessments

LDPE G-P 1533-1539 1248-1252 1228-1232 1198-1202 1650-1654 1658-1662 —

HDPE Inj 1521-1526 1238-1242 1218-1222 1188-1192 1621-1626 1598-1602 —

PP Homo Inj 1546-1552 1258-1262 1238-1242 1218-1222 1646-1650 1583-1587 —

PS G-P 1743-1755 1410-1420 — — 1780-1790 1775-1785 —

PET bottle grade — 1053-1057 — — — — 868-872

Copyright © 2014, McGraw Hill Financial 3

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producers said they were protecting margins, aiming to Latin America

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Polymer Feedstocks: Olefins

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Ethylene pipeline system in Louisiana. On Wednesday, September

Copyright © 2014, McGraw Hill Financial 16

mt day on day and week on week to be assessed $1,505/ United States

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Polymer Feedstocks: Aromatics

Europe Weekly Average Spot*

appetites of European consumers.

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Polymer Feedstocks: Intermediates

Europe Weekly Spot

Asian purified terephthalic acid prices continued their

Copyright © 2014, McGraw Hill Financial 25

Acrylonitrile Asia marker was assessed down $25/mt week on week at

Asia United States

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Global Production Update

Copyright © 2014, McGraw Hill Financial 28