Polymerscan: Americas Polymer Spot Price Assessments

[PETROCHEMICALS ]
www.platts.com
POLYMERSCAN
Now online at pmc.platts.com Volume 37 / Issue 39 / October 1, 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 900-910 62.00-64.00 1366.48 -1410.56 —- 1060-1070 1015-1025

LDPE G-P 1753-1775 95.00-96.00 2093.80 -2115.84 1840-1850 1770-1780 1790-1800
LLDPE (Butene) 1687-1709 82.00-83.00 1807.28 -1829.32 1790-1800 1725-1735 1755-1765

HDPE Inj 1698-1720 86.00-87.00 1895.44 -1917.48 1780-1790 1730-1740 1745-1755
Bmldg 1665-1687 86.00-87.00 1895.44 -1917.48 1780-1790 1730-1740 1745-1755
Film 1709-1731 89.00-90.00 1961.56 -1983.60 1780-1790 1720-1730 1755-1765
Yarn —- —- —-

PP Homo Inj 1863-1885 82.50-83.50 1818.30 -1840.34 1650-1660 1675-1685 1670-1680
Fiber —- 83.50-84.50 1840.34 -1862.38 —- —- —-
Copol 1885-1907 —- 1690-1700 1715-1725 1710-1720
IPP Film
BOPP

PS G-P 1990-2000 122.00-124.00 2688.88 -2732.96 —-
HIPS 2090-2100 132.00-134.00 2909.28 -2953.36 —-
ABS Inj —- 122.00-124.00 2688.88 -2732.96 —-

PET bottle grade 1554-1576# 1687-1709##
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 1004-1006 1004-1006 1034-1036 ^6930-6950 Low Density Polyethylene 5
^^5920-5940 Linear Low Density Polyethylene 6
High-Density Polyethylene 7
LDPE G-P 1529-1531 1554-1556 —- 12080-12120 Polypropylene 9
LLDPE (Butene) 1489-1491 1549-1551 1609-1611 10980-11020 Polystyrene 10
Acrylonitrile Butadiene Styrene 12
HDPE Inj 1519-1521 1559-1561 1624-1626 —-
Polyethylene Terephthalate 13
Bmldg 1539-1541 1559-1561 1609-1611 —-
Film 1539-1541 1559-1561 1609-1611 11980-12020 Polymer Feedstocks: Olefins
Yarn 1559-1561 1589-1591 —- —-

Ethylene 16
PP Raffia 1479-1481 1509-1511 1534-1536 10930-10970 Ethylene Glycol 17
PP Injection 1469-1471 1504-1506 1534-1536 —- Propylene 18
Fiber —- —- Butadiene 19
Copol 1599-1601 1594-1596 1584-1586 —-
IPP Film 1509-1511 1534-1536 1569-1571 —- Polymer Feedstocks: Aromatics
BOPP 1504-1506 1534-1536 1569-1571 —- Paraxylene 21
Styrene 22
PS G-P 1604-1606 1644-1646 —- —-
HIPS 1704-1706 1719-1721 —- —- Polymer Feedstocks: Intermediates
EPS G-P 1689-1691* Purified Terephthalic Acid 24
EPS F-R 1729-1731* Acrylonitrile 25
ABS Inj 1914-1916 1909-1911 —- —-
Ethylene Dichloride /
Vinyl Chloride Monomer 25
PET bottle grade 1207-1209 * 1247-1249 ** —- —-
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 october 1, 2014
Daily Polymer Spot Price Assessments

Thursday Friday Monday Tuesday Wednesday Average
CFR FE Asia ($/mt)
HDPE film 1549-1551 1549-1551 1549-1551 1549-1551 1539-1541 1547.00-1549.00
LDPE 1549-1551 1549-1551 1549-1551 1539-1541 1529-1531 1543.00-1545.00
LLDPE 1489-1491 1489-1491 1494-1496 1494-1496 1489-1491 1491.00-1493.00
PP Raffia 1484-1486 1479-1481 1479-1481 1479-1481 1479-1481 1480.00-1482.00
PP Injection 1474-1476 1474-1476 1474-1476 1474-1476 1469-1471 1473.00-1475.00
FD NWE (Euro/mt)
LDPE 1248-1252 1248-1252 1248-1252 1248-1252 1258-1262 1250.00-1254.00
LLDPE 1248-1252 1248-1252 1248-1252 1248-1252 1258-1262 1250.00-1254.00
PP Homo 1248-1252 1248-1252 1248-1252 1248-1252 1248-1252 1248.00-1252.00
FCA Antwerp (Euro/mt)
LDPE 1228-1232 1228-1232 1228-1232 1228-1232 1238-1242 1230.00-1234.00
LLDPE 1228-1232 1228-1232 1228-1232 1228-1232 1238-1242 1230.00-1234.00
PP Homo 1228-1232 1228-1232 1228-1232 1228-1232 1228-1232 1228.00-1232.00
FAS Houston ($/mt)
LDPE 1742-1764 1742-1764 1742-1764 1742-1764 1753-1775 1744.20-1766.20
LLDPE 1687-1709 1665-1687 1665-1687 1665-1687 1687-1709 1673.80-1695.80
PP Homo 1819-1841 1841-1863 1841-1863 1841-1863 1863-1885 1841.00-1863.00
HDPE Blmldg 1665-1687 1665-1687 1665-1687 1665-1687 1665-1687 1665.00-1687.00
FOB Middle East Netbacks ($/mt)
HDPE 1538-1540 1538-1540 1538-1540 1538-1540 1528-1530 1536.0-1538.0
LDPE 1538-1540 1538-1540 1538-1540 1528-1530 1518-1520 1532.00-1534.00
LLDPE 1478-1480 1478-1480 1483-1485 1483-1485 1478-1480 1480.00-1482.00
PP Raffia 1473-1475 1468-1470 1468-1470 1468-1470 1468-1470 1469.00-1471.00
PP Injection 1463-1465 1463-1465 1463-1465 1463-1465 1458-1460 1462.00-1464.00
Notes: The weekly average represents the average of Thursday through Wednesday of the previous week.
FOB Middle East netback denotes CFR Far East Asia assessments minus the prevailing container freight rate from Al-Jubail to Shanghai for a standard 20-foot container.
Polymer Spot Freight Rates ex-Middle East ($/mt) Subscriber Notes:

From: Middle East Middle East
To: 25-100 mt >100mt Platts to update US benzene and aromatics pages Beginning
East China 18-22 10-12 October 1, Platts will publish daily FOB and DDP basis US
South China 14-18 8-14 benzene prices and commentary on Petrochemical Alert
India 40-52 20-40
Southeast Asia 18-25 18-24 (PCA) page 208 and daily FOB basis aromatics prices and
NW Europe 55-65 50-60 commentary on PCA 435. To date, Platts has published
Turkey 50-70 40-60 a combined daily benzene and aromatics pricing table
US Gulf 130-140 120-130
Latin America 165-175 160-165 on PCA 208 and combined daily benzene and aromatics
Notes: Please refer to the methodology guide for details on port locations. commentaries on PCA 208 and 435. The commentaries will
be split into two sections with bullet points to capture the
Metals most important trends of the day. Alongside the new, more
Aluminum US Sep 30 cts/lb 109.920 concise market commentaries will be separate assessment
Tin US Sep 29 cts/lb 952 rationales. The rationales are designed to give the reader
Tin Europe Sep 26 $/mt 21490-21612 a greater understanding of the Platts methodology and our
approach to pricing while leaving the market commentary
Foreign exchange in a more easily accessible format. Please direct any
€1 to $1.2604 £1 to €1.2857 questions or comments to [email protected] with a cc to
[email protected]
Global PVC Prices
Platts to discontinue Japan petchems export prices in yen/kg
1200 Following a detailed review of the market, Platts will discontinue
CFR FE Asia ($/mt) FD NWE (€/mt) FAS Houston ($/mt) its Japan domestic petrochemicals exports assessments in
1100 yen/kilograms from September 30, 2014. These assessments
are published on page PCA356 and PCA357 and found under
1000 the following codes in the Platts database:
900 Symbol Description

AAKQG00 LDPE average export price Japan Jpy/kg Monthly
800 AAKQH00 HDPE average export price Japan Jpy/kg Monthly
AAKQI00 PP (Homo) average export price Jpy/kg Monthly
700 AAKQJ00 PP (Copol) average export price Japan Jpy/kg Monthly
14-May 11-Jun 09-Jul 06-Aug 03-Sep 01-Oct
(continued on page 27)
Copyright © 2014, McGraw Hill Financial 2

Euro Contract Assessments (Euro/mt)

Germany Holland Italy France Spain Britain* FD NWE CP**
($/mt)
PVC susp Gross 843-847 843-847 843-847 843-847 843-847 695-699 1063-1067
PVC susp Net 818-822 818-822 818-822 818-822 818-822 675-679
LDPE G-P 1450-1455 1450-1455 1420-1425 1445-1450 1420-1425 1128-1132 1828-1834

LLDPE C4 (Blown film) 1400-1405 1400-1405 1400-1405 1400-1405 1400-1405 1089-1093 1765-1771
LLDPE C4 (Cast stretch film) 1400-1405 1400-1405 1400-1405 1400-1405 1400-1405 1089-1093 1765-1771
LLDPE C6 (Blown film) 1440-1445 — — — — — 1815-1821
LLDPE C6 (Cast stretch .film) 1440-1445 — — — — — 1815-1821
HDPE Inj 1350-1355 1350-1355 1350-1355 1350-1355 1350-1355 1050-1054 1702-1708

HDPE Bmldg 1330-1335 1330-1335 1330-1335 1330-1335 1330-1335 1034-1038 1676-1683
HDPE Film 1290-1295 1290-1295 1290-1295 1290-1295 1290-1295 1003-1007 1626-1632
HDPE HMW 2-5 1350-1355 1350-1355 1350-1355 1350-1355 1350-1355 1050-1054 1702-1708
HDPE HMW 5-10 1345-1350 1345-1350 1345-1350 1345-1350 1345-1350 1046-1050 1695-1702
PP Homo Inj 1420-1425 1420-1425 1410-1415 1420-1425 1410-1415 1104-1108 1790-1796

PP Copol 1470-1475 1470-1475 1460-1465 1470-1475 1460-1465 1143-1147 1853-1859
GPPS Net 1500-1510 1500-1510 1500-1510 1500-1510 1500-1510 1167-1174 1891-1903

HIPS Net 1580-1590 1580-1590 1580-1590 1580-1590 1580-1590 1229-1237 1991-2004
EPS 1535-1545 1535-1545 1535-1545 1535-1545 1535-1545 1194-1202 1935-1947
ABS GP/Nat 1690-1700 — 1690-1700 1690-1700 1690-1700 1314-1322 2130-2143

ABS Ave color 1940-1950 — 1940-1950 1940-1950 1940-1950 1509-1517 2445-2458
ABS Auto black 2090-2100 — 2090-2100 2090-2100 2090-2100 1626-1633 —-
PET bottle grade 1159-1163 — 1159-1163 1159-1163 1159-1163 899-903

PET bottle grade — — — — — 1156-1161##
PET bottle grade Net 1073-1077 — — — — 873-877 1352-1357
PET bottle grade Net — — — — — 1122-1128##
APET film grade 1148-1152
APET film grade Net 1063-1067
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) ($/mt) (GBP/mt)
PVC SUSP 956-960 818-822 — 807-811 1033-1037 — —
($/mt) 1018-1022
LDPE G-P 1510-1515 1258-1262 1238-1242 1208-1212 1649-1653 1610-1615 —

LLDPE (Butene) —- 1258-1262 1238-1242 1208-1212 1636-1640 1558-1562 —
HDPE Inj 1491-1496 1243-1247 1223-1227 1193-1197 1618-1622 1568-1572 —

Bmldg 1447-1452 1208-1212 1188-1192 1158-1162 1548-1552 1568-1572 —
Film 1497-1502 1248-1252 1228-1232 1198-1202 1623-1627 1568-1572 —
PP Homo Inj 1497-1502 1248-1252 1228-1232 1208-1212 1583-1587 1568-1572 —

PP Raffia — — — — 1583-1587 1568-1572 —
PP Copol 1573-1578 1308-1312 1288-1292 1268-1272 1643-1647 1618-1622 —
PS G-P 1676-1689 1390-1400 — — 1760-1770 1755-1765 —

HIPS 1783-1796 1475-1485 — — 1845-1855 1820-1830 —
EPS 1777-1790 1470-1480 — — 1850-1860 — —
ABS GP/Nat 2000-2010***
1680-1690 — — — —
PET bottle grade — 1053-1057 — — — — 863-867

PET bottle grade — — — — — — 1110-1115#
Recycled PET — 878-882 — — — — 733-737
Recycled PET — — — — — — 942-948#
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 source said drops in ethylene prices and returns of downed
steam crackers may lead to an increase in market activity
Europe and allow producers to lower prices. At current feedstock
Platts assessed European freely delivered polyvinyl chloride prices, producers will have a difficult time covering their
spot and contract prices at Eur820/mt Wednesday, flat costs, another trading source said. While producers have
week on week. No change in the cost of feedstock ethylene been seen unwilling to reduce prices due to feedstock costs,
was seen for October contracts and while poor demand traders have experienced difficulty in executing deals with
was seen bringing prices down last week they held up PVC end-users, a market participant said. Overseas demand
this week on firming market sentiment, sources said. The has been called quiet by market participants. In markets,
Northwest European October CP for ethylene fully settled at CFR offers to Egypt were heard to have reached $1,000/
Eur1,150/mt FD NWE Thursday, a rollover from September, mt on improved demand, but demand in Asia has been
sources said. Following the ethylene settlement, demand described as weak due to upcoming holidays and ample
was seen up, as consumers eyed purchases postponed in inventories, market sources said.
expectation of a drop in the October ethylene contract.
“Buyers’ stock levels couldn’t be that high after waiting a Asia
month for a drop in ethylene — sooner or later they had Asian polyvinyl chloride prices fell $5/mt this week as
to buy,” a trader source said. Although producers have buying interest faded due to poor India demand and China’s
been heard considering not lowering PVC CPs this month Golden Week holiday. The CFR India market fell $5/mt
some converters suggested this may change in coming week on week to $1,035 /mt Wednesday. Following a fall
weeks. “Demand from our [construction] industry is low in domestic PVC prices, buying sentiment had picked up
and slowing. Producers will eventually have to concede slightly this week, with Northeast Asia cargoes heard traded
[on prices] if they want to shift product when we can between $1,030-1,040/mt for 90-day credit terms. While
do without,” a pipe converter source said. The European buying ideas were heard between $960-1,000/mt, offers were
construction sector consumes 60% of total domestic PVC maintained at $1,050/mt. A Northeast Asia producer said
demand. In Turkey, meanwhile, the spot price was assessed the current offers were sufficient to block Chinese carbide-
at $1,035/mt CFR. No change had been heard in European based PVC from flooding into India, and saw no reason to
offers to the country this week, after a reduction last week lower their selling ideas. Moreover, as feedstock ethylene
had been seen bringing the CFR price down. The lowest prices remained persistently high, further cuts would only
EU spot offer to Turkey currently heard was at $1,040/mt induce more losses for ethylene-based PVC makers, added an
CFR. Demand in the region had been heard improved this Indian source. However, the large import volumes over the
week as consumers expected no further decreases in EU last three months during the monsoon season were expected
offers going further into the month, a trade source said, to keep end-users satiated till the end of this year, and could
adding demand in Turkey had picked up with converters possibly delay market demand from returning, noted market
learning to diversify away from export markets that are participants. The CFR China marker fell $5/mt from last
currently in a state of political volatility. Meanwhile Polish Wednesday to $1,005/mt. October imports from Asia were
petrochemical producer Anwil has restarted production heard concluded between $1,000- 1,010/mt and at $980-990/
at its PVC unit in Wloclawek, Poland, Tuesday after three mt for deep-sea cargoes. Market activity was thin this week
weeks of planned maintenance, a company spokesman said with China’s Golden Week holiday starting Wednesday.
Tuesday. The company shut down the 340,000 mt/year PVC Asian producers were unwilling to lower prices despite
plant on September 8. weak buying sentiment to maintain a price gap with deep-
sea origin cargoes. Operating downstream makers mostly
United States preferred cheap cargoes due to poor re-export demand
US export PVC prices held steady week on week, assessed from the West, thus pushing import prices down, noted a
Wednesday at $900-910/mt FAS Houston, in a market that trader. In the Chinese domestic market, ethylene-based PVC
several sources said was quiet. No trades, bids or offers were remained unchanged from last Wednesday at Yuan 6,940/
heard for the week, with a trading source saying the gap mt. Chinese carbide-based PVC fell Yuan 10/mt from the
between buying ideas and offers has remained too wide week before to Yuan 5,930/mt Wednesday. Prices for carbide-
for trades to occur. Buying ideas were heard at sub-$900/ based PVC were heard to be on a slight downtrend since late
mt levels. Feedstock ethylene pricing has posed an issue for last week, as sellers wanted to reduce inventory levels before
domestic producers as US spot ethylene in mid-September the holiday. Discussions were generally muted since buyers
reached its high level since Platts began assessing it on July were on the sidelines in preparation for the break. A Chinese
26, 2004. US spot ethylene has come down to a Wednesday source said he expected lower prices after the holiday as
assessment of 66-66.5 cents/lb FD USG for October and downstream demand for pipes are generally weaker as winter
63.75-64.25 cents/lb FD USG for November. A trading approaches. The CFR Southeast Asia PVC marker dropped

$5/mt to $1,005/mt Wednesday. October-loading cargoes United States

were heard at $1,000-1,010/mt this week. Trades for Chinese US low-density polyethylene prices were assessed
carbide-based PVC was heard at $930-940/mt, while Chinese Wednesday at $1,753-$1,775/mt FAS Houston, up $11/mt
ethylene-based PVC was heard at $960/mt, both keeping week on week, as sources said tighter availability continued
a spread with mainstream PVC prices. Selling indications to put pressure on a mostly non-existent US export market.
were heard at $1,020/mt, against buying indications at Multiple sources said they were still waiting on fresh
$1,000/mt and below. Growing imports of Chinese PVC October pricing from producers, with expectations that
were expected to weaken the Southeast Asia market further, offer levels would remain around those seen in September.
thus suppressing buying demand in anticipation of cheaper Sources said a limited amount of bagged LDPE had been
November offers this month. offered at 79 cents/lb ($1,742/mt), but most resin was
notionally talked above that level. A producer source pegged
Latin America prices closer to $1,800/mt FAS Houston. No confirmed deals
Latin American import assessments remained stable on were heard Wednesday. A strong US dollar and declining
the week, with the region experiencing with limited prices in other regions were making exports increasingly
demand that has been seen in global markets. The CFR difficult, sources said, leading many traders to look to Asia,
Brazil assessment Wednesday was at $1,060-1,070/mt the Middle East and even Europe to supply customers in
with no trades, bids or offers heard. Colombian-origin Latin America. Sources said it would likely be November at
PVC into Brazil was heard at $1,000/mt as devaluation the earliest before the US would be a significant player in
of the Brazilian Real has made imports from outside the export market, though that was not a given. Sources
South America difficult to execute. Offers for Asia-origin were hopeful that declining spot ethylene prices could
product were last heard at $1,080/mt CFR Brazil. The Peru mean additional resin would become available as producers
assessment held steady at $1,015-1,025/mt on a CFR basis would have more incentive to make polyethylene and sell it
in a quiet market. Strong feedstock prices mean exports at the prices necessary to export. October US spot ethylene
would be difficult for US producers, a trading source said, was assessed Wednesday at 66-66.50 cents/lb FD USG, down
adding that overseas markets have been dull lately. 5.75 cents/lb week on week as the market reacted positively
to anticipated start ups and capacity expansions. There were
expectations that October contracts would roll over after
Low Density Polyethylene producers successfully implemented a 3 cents/lb increase
in September. September LDPE contracts were assessed at
Europe 95-96 cents/lb ($2,094-2,116/mt) delivered-railcar basis,
European low density polyethylene spot prices rose this matching a record-high set in the second quarter of 2011,
week, for the first time since September 9, closing at Platts data show. Equistar Chemicals previously announced
Eur1,260/mt FD NWE, as demand improved due to a a 3 cents/lb increase for all grades of North American PE
need for customers to buy following the destocking seen effective October 15, but no other producers were heard
in September, according to one trader. The Northwest matching the increase, which will make implementing
European October contract price for ethylene was it difficult, sources said. Dow Chemical sent a letter to
fully settled at Eur1,150/mt FD NWE, a rollover from customers this week saying it will raise its US polyethylene
the September CP, sources said. The initial settlement prices by 3 cents/lb ($66/mt) effective November 1.
was between Clariant as a buyer with LyondellBasell, Multiple sources said a November increase would also be
BP Refining and Petrochemicals and BASF as sellers, tough to implement as there were indications not all major
a source from the buyer said. This was followed by producers planned to push for another increase.
BPRP as a seller with buyer Vinnolit. LyondellBasell
and BASF confirmed. BPRP did not confirm. Vinnolit Asia
was not immediately available to confirm. More spot Asian low density polyethylene prices fell this week, as the
material was heard offered in South America this week, buy side offered no support with China closed for the Golden
with offers heard at $1,805/mt CFR Peru, and $1,765/ Week holiday starting Wednesday. The CFR Far East Asia
mt CFR Peru, shipping the second half of October. In marker was assessed $20/mt lower week on week at $1,530/mt
the contract market, prices were assessed unchanged Wednesday, while the CFR Southeast Asia marker also fell $20/
this week, at Eur1,450-1,455/mt. One producer said that mt to $1,555/mt. The market was largely quiet this week as
they were extremely short in LD and that particular buyers in China had finished procuring cargoes in preparation
pressure was felt on 0.3 MFI grade, with supply reduced of the Golden Week holiday. No trades were heard at the start
by a lack of imports. One converter said that market of the week, as offers from sellers were met with little or no
fundamentals had not changed week-on-week, and interest. However, several traders said market participants were
the price expectation was for a rollover. Meanwhile not adopting a wait-and-see approach but rather locked in a
in Turkey, sentiment was weaker and buying activity stalemate. “Buyers have no intentions on increasing their bids,
reduced as the market expected Petkim to start while sellers are reluctant to reduce their offers any further as
production at the end of the week, one source said. margins are very poor,” said a China-based trader. Another

market source saw the tradable market value at around was also hampered by the reduced imports seen in
$1,550/mt CFR China at the start of the week, with buying recent weeks following the fall in the euro against the
ideas heard at around $1,530/mt and offers heard at $1,580/ dollar. The price rise occurred following the ethylene
mt. In other news, the ongoing protests in Hong Kong has contract price settling for October: it was fully settled
had a negative impact on market sentiment as buyers were at Eur1,150/mt FD NWE, a rollover from September,
worried about whether the situation would impact business. A sources said Thursday. The initial settlement was between
trader said that buyers were reluctant to conclude deals until Clariant as a buyer with LyondellBasell, BP Refining and
market confidence returns. “Many traders were expecting Petrochemicals and BASF as sellers, a source from the
some deals to be concluded this week before the Golden Week buyer said. This was followed by BPRP as a seller with
holiday in China starts,” said the same trader. “The Hong buyer Vinnolit. LyondellBasell and BASF confirmed.
Kong protests dashed those expectations, with traders putting BPRP did not confirm. Vinnolit was not immediately
their deals on hold.” available to confirm. In the contract market, prices
were unchanged this week, closing at Eur1,402.50/mt.
Latin America One converter said they could not see prices rising as
Import assessments for low-density polyethylene to Peru order intake was very weak with customers holding off
remained flat week on week, assessed Wednesday at purchasing as they awaited further price developments.
$1,790-$1,800/mt on a CFR basis as buying talk was heard One producer said that LLDPE c4 was very short due to a
diminished. Market sources said cheaper European-origin scarcity of imports. Meanwhile in Turkey, one source said
product was being offered into Peru, however these offers that the market sentiment was very weak in line with
were not taken into consideration because delivery dates fell recent price drops in China.
outside the 20-40 days forward delivery period. European
LDPE offers were heard in the $1,765-1,805/mt range while United States
Asian offers were heard at $1,800-1,830/mt CFR Peru for The US linear low-density polyethylene export market
second half October shipments, however those were not remained quiet this week as multiple sources said they
considered because they fell outside the delivery period. were awaiting word from producers on pricing and
Asian-origin material was heard offered at $1,780/mt CFR availability for October product. LLDPE prices were
Peru, but was below 100mt minimum size dictated by Platts assessed Wednesday at $1,687-1,709/mt FAS Houston,
methodology. US-origin material was not heard offered unchanged week on week. Sources talked bulk railcar
into the region but previously was heard higher at $1,835- prices notionally in the 75-76.5 cents/lb range, with some
$1,854/mt CFR basis. In Brazil, CFR assessments remained bagged LLDPE heard available at 76 cents/lb ($1,675/mt)
flat week on week, assessed at $1,770-1,780/mt amid slow before being shipped to the port. Multiple US-based traders
trading, sources said. One Brazilian trader said product from said they continued to look to other regions for resin as
the Middle East could be offered at $1,760/mt on a CFR US prices were mostly uncompetitive into export markets
basis, however neither the volume nor delivery period were in South America. Sources were keeping a close eye on
specified. A Brazilian-based buyer said product from Israel spot ethylene prices, with some hope that further declines
was offered $1,735/mt CFR and noted that a trade agreement could give US producers incentive to make additional
between the the country and the Mercosur would expire at resin for export. October US spot ethylene was assessed
the end of the year. No other market sources heard pricing Wednesday at 66-66.50 cents/lb FD USG, down 5.75
at a similar level. No deals or bids were heard by close cents/lb week on week as the market reacted positively
of assessment. In export pricing, FOT Brazil assessments to anticipated startups and capacity expansions. There
remained flat, assessed Wednesday at $1,840-$1,850/mt on were expectations that October PE contracts would roll
stable pricing into the region. No trades, bids or offers were over after producers successfully implemented a 3 cents/
heard by close of assessment. One Paraguayan seller pegged lb increase in September. October contracts had not been
their LDPE pricing at $1,820 for Mercosur participants. settled by time of publication, but were last assessed at
Sources said Braskem pricing remains high due to limited 82-83 cents/lb ($1,808-1,830/mt) for delivered railcars
spot availability as the company undergoes a major for September, the highest level since August 2008 when
turnaround at its Sao Paulo olefins and polymers complex. contracts was assessed at 86.50 cents/lb delivered railcar.
Local producers were heard increasing October pricing by Equistar Chemicals previously announced a 3 cents/
Reals$300 ($121/mt) according to company sources. lb increase for all grades of North American PE effective
October 15, but no other producers were heard matching
the increase, making it unlikely the higher price would
Linear Low Density Polyethylene be realized, sources said. Dow Chemical sent a letter to
customers this week saying it will raise its US polyethylene
Europe prices by 3 cents/lb ($66/mt) effective November 1.
European linear low density polyethylene spot prices rose Multiple sources said a November increase also appeared
this week to Eur1,260/mt FD NWE as low stock levels unlikely at this point as not all major producers were
compelled buyers to return to the market. Availability likely to join in, making it tough to implement.

Asia sources. No deals, other offers or bids were heard by close

The linear low-density polyethylene market was mixed this of assessment. FOT ba is pricing does not include freight
week, with the CFR Far East Asia marker unchanged week costs, estimated by sources at $100-$120/mt.
on week at $1,490/mt Wednesday, while the CFR Southeast
Asia marker fell $10/mt to $1,550/mt and South Asia fell
$30/mt to $1,610/mt. On Monday, a trade was heard High-Density Polyethylene
concluded at $1,500/mt on a CFR China basis with a 90-day
letter of credit. A trader said market levels were around Europe
$1,500/mt and offers at $1,520/mt. The deal injected some European high density polyethylene prices were stable this
confidence to the market, which has been largely quiet week as the lack of demand on bearish October sentiment
since the previous week with participants unable to come offset the limited availability from reduced imports. Prices
in agreement to finalize deals. Several market participants closed Wednesday at Eur1,200/mt FD NWE, Eur1,250/mt,
agreed that $1,500/mt is a reasonable price for deals, and and Eur1,240/mt for HD blowmolding, film, and injection
some traders said it was getting more difficult for deals respectively. In upsteam news, the Northwest European
to be concluded above $1,500/mt going forward. “Some October contract price for ethylene was fully settled at
market players say that buying interests will pick up once Eur1,150/mt FD NWE, a rollover from the September CP,
the Golden Week holiday in China is over and demand sources said Thursday. The initial settlement was between
will return with renewed vigor,” said a China-based trader. Clariant as a buyer with LyondellBasell, BP Refining and
“For now, there is a difference of $20-30/mt between bids Petrochemicals and BASF as sellers, a source from the
and offers and producers are in no hurry to sell.” However, buyer said. This was followed by BPRP as a seller with
another market source said that even if buyers returned, buyer Vinnolit. LyondellBasell and BASF confirmed. BPRP
prices would find little support and continue its downtrend did not confirm. Vinnolit was not immediately available
as producers were expected to slash prices as inventory to confirm. More spot product was heard moving to the
continues to build up in the coming weeks. “Buyers US this week, with HDPE heard sold to the US at $1,680/
have left the market and many traders are observing the mt CFR. In the contract market prices were largely
recent bullish activity of futures contracts on the Dalian unchanged, tracing the developments in ethylene. HD
Commodity Exchange,” said the same market source. blowmolding and injection were assessed at Eur1,332.5/
“However it is all spurred from speculation as there is no mt and Eur1,352.5/mt respectively. HD film was assessed
interest at all for physical cargoes.” Eur10/mt higher at Eur1,292.5/mt, following a production
issue affecting availability. One converter said the force
Latin America majeure at LyondellBasell’s Plock unit in Poland had not
Import assessments for linear low-density polyethylene affected him sourcing product specifically, but may have
into Peru rose $5/mt week on week, assessed Wednesday affected sentiment in the market. One producer said that
at $1,755-$1,765/mt CFR basis as Asia-origin offers requests for HD film and bimodal were increased on the
pushed prices higher. Asian-origin LLDPE was heard back of production issues. LyondellBasell declared force
offered in a range of $1,775-1,780/mt CFR basis with majeure on the supply of HDPE grade products from its
90-day letter of credit. Both US and European offers were joint venture Basell Orlen Polyolefins (BOP) in Plock, the
absent this week. Offers were heard into the region as low company said in a letter dated Friday and seen by Platts.
as $1,730/mt CFR basis, however one was a small volume “The BOP plant underwent an unplanned shutdown
(50 mt or less) of Middle East-origin product and the due to a lack of ethylene availability and subsequent
second was not repeatable and was also offered to West technical issues prior to the planned shutdown,” said the
Coast South America including Colombia and Ecuador. letter. LyondellBasell was not immediately available for
In Brazil, CFR prices dropped $10/mt week on week, comment. The Plock polyolefins units, a joint venture
assessed at $1,725-1,735/mt, with participants stating between LyondellBasell and Polish refiner PKN Orlen, has
the polymer market is difficult due to the economic a nameplate capacity of 320,000 mt/year of HDPE.
issues and the country’s national elections next Sunday.
Middle East-origin product was heard offered in ranges Africa
of $1,740-1750/mt CFR basis, with one Brazil-based North African polyethylene prices fell this week on the back
buyer saying he has been receiving lower priced offers. of lower offers coming from Europe. LDPE, LLDPE, and
For exports out of Brazil to Mercosur markets, FOT Brazil HDPE prices were assessed at $1,612.50/mt, $1,560/mt, and
pricing was stable for the period at $1,790-$1,800/mt on $1,570/mt CFR N.Africa respectively. One trader said that
limited activity. Braskem pricing remains high according demand was poor due to an expectation of lower prices.
to sources due to limited spot availability as the company Kuwait’s Equate Petrochemical Co. nominated the October
undergoes a major turnaround at its Sao Paulo olefins Middle East contract price for HDPE-blow (high molecular)
and polymers complex. Regional producers were heard at $1,600/mt factory delivered UAE, down $10/mt from
increasing October pricing for the Brazilian domestic September, sources close to negotiations said Wednesday.
market by Reals300 ($121/mt) according to company The company also nominated the October Middle East

CPs for its HDPE-blow (medium molecular) at $1,600/ marker fell $15/mt week on week to be assessed at $1,540/
mt FD UAE, down $10/mt from September; for HDPE- mt, while the CFR Southeast Asia marker fell $10/mt to
film at $1,600/mt FD UAE, a rollover from September; $1,560/mt and the CFR South Asia marker fell $30/mt to
and for LLDPE at $1,630/mt FD UAE, down $20/mt. Sabic $1,610/mt. Offers for Middle Eastern material were heard
nominated the October Middle East CPs for HDPE-film at around $1,570/mt CFR China with 90-day letters of credit
$1,600/mt FD UAE, unchanged from September, sources at the start of the week, while traders were pegging market
said; for HDPE-injection at $1,600/mt FD UAE, unchanged levels at $1,550/mt. No firm bids or trades were heard. The
from September; for HDPE-blow (high molecular) at $1,610/ downtrend in prices seen over the past few weeks stalled
mt FD UAE, a rollover from September; for HDPE blow late week as buyers stopped lowering bids as the Golden
(medium molecular) at $1,610/mt FD UAE, also unchanged; Week holiday approached, market sources said. “No one
for LDPE at $1,660/mt FD UAE, down $20/mt; and LLDPE in the market is serious about buying and sellers are not
at $1,630/mt FD UAE, down $40/mt. able to conclude any deals,” said a trader in Southeast Asia,
adding: “Buyers have stopped reducing their bids and there
United States is a standoff between them and the sellers.” A bid was heard
US high-density polyethylene export prices were stable at $1,530/mt CFR China later in the week, with several
week on week as sources said the market remained quiet, market sources seeing likely deal levels at $1,540-1,550/
with buyers awaiting October offers from producers. HDPE mt. An end-user in China said the bid was too low and it
blowmolding was assessed Wednesday at $1,665-$1,687/ is likely the buyer was not serious in procuring material.
mt FAS Houston, unchanged week on week. Sources said “A lot of companies have planned for the Golden Week
a limited amount of bagged blowmolding was available holiday and their inventory levels are well covered,” said
from a producer at 75 cents/lb ($1,653/mt) before freight another trader, adding: “Buyers who are interested are
to ship it to the port. An offer to Brazil for US-origin limited and preferring to see if prices will soften further.”
blowmolding was heard at a level that would netback to Another market participant said prices were around the
$1,700/mt FAS Houston. No confirmed deals were heard $1,540/mt level this week and likely to fall further as sellers
by close of assessment. HDPE Injection was assessed at would have to reduce offers to attract buying interest.
$1,698-$1,720/mt FAS Houston, flat week on week. No
confirmed deals were heard as sources pegged injection Latin America
prices 1-2 cents above blowmolding. HDPE high molecular- Talk of spot pricing for high-density polyethylene imports
weight film was assessed Wednesday at $1,709-$1,731/mt into South America this week was dominated by Middle
FAS Houston, unchanged week on week. Sources said some East-origin product, with Europe-origin material largely
resin was available at 77 cents/lb in bags, before freight silent, sources said Wednesday. In Peru, blowmolding
to move it to the port. Others talked the market higher, and injection grades were assessed stable week on week
pointing to continued tight supply. US domestic contracts at $1,745-$1,755/mt CFR basis amid quiet trade activity.
were expected to remain flat in October, said multiple Film also remained stable, assessed at $1,755-$1,765/
sources, who noted that only one producer — Equistar mt CFR basis, as buyers continued to retreat. A US-based
— had nominated a price increase, which was set to be trader offered US-origin film $1,830/mt CFR basis while
implemented mid-month. Following a 3 cents/lb increase, Asian-origin film was heard offered as low as $1,750 but
HDPE September contracts were assessed for blow molding with a late October shipping date, meaning delivery would
at 86-87 cents/lb ($1,896-1,918/mt) delivered-railcar basis; be outside Platts methodology specifications. US-origin
at 86-87 cents/lb ($1,896-1,918/mt) for injection; and at material was previously heard offered in a wide range at
89-90 cents/lb ($1,962-1,984/mt) for high molecular weight $1,800-1,964/mt CFR basis for the different grades, sources
film. HDPE contracts have risen 7 cents/lb in 2014. The film said. In Brazil, the HDPE film assessment dropped $15/mt
and injection assessments were at record highs, surpassing week on week $1,720-$1,730/mt CFR basis as Middle East
previous highs of 88.50 and 85.50 cents/lb in August product was heard offered lower this week in the $1,740-
2008, according to Platts data. Blowmolding was assessed 1,750/mt range by a US based trader. HDPE blowmolding
for September at its highest level since 87.50 cents/lb in and injection rose $10/mt each up to $1,730-$1,740/mt.
August 2008, per Platts data. Dow Chemical sent a letter to Middle East-origin Injection was heard $1,750/mt while
customers this week saying it will raise its US polyethylene blowmolding was heard this week at $1,740-1,750/mt CFR
prices by 3 cents/lb ($66/mt) effective November 1. basis. CFR blowmolding offers heard included from the US
Multiple sources said a November increase would also be for $1,760/mt. In Brazilian exports, neighboring countries
tough to implement as there were indications not all major saw remain prices stable at $1,780-$1,790/mt FOT basis
producers planned to push for another increase. week on week. No deals, other offers or bids were heard
on an FOT Brazil basis, which is an export assessment to
Asia Mercosur countries. FOT basis pricing does not include
Asian high density polyethylene prices continued to fall freight costs, estimated by sources at $100-$120/mt.
this week as buyers in China would down for the week- Braskem pricing remains high according to sources due to
long holiday that began Wednesday. The CFR Far East Asia limited spot availability as the company undergoes a major

turnaround at its Sao Paulo olefins and polymers complex. for PP-raffia at $1,580/mt FD UAE, down $10/mt from
Regional producers were heard increasing October pricing September. Sabic was not available to confirm. The strong
for the Brazilian market by Reals300 ($121/mt). dollar meant European product was being offered, one
trader said, pegging PP homo prices at $1,570/mt CFR.
The European benchmark FD NWE price was stable on
Polypropylene the week at Eur1250/mt FD NWE. However, the euro was
trading at $1.2604/mt against the dollar Wednesday, an
Europe almost two year low. The weakness of the euro sustained
European polypropylene prices mirrored propylene’s exports from Europe to South America, Turkey and
rollover this week, with the spot benchmark price flat at unusually to the US, an arbitrage rarely open, according
Eur1,250/mt FD NWE. The October propylene contract to sources. FOB NWE PP homo was assessed at $1,500/
price fully settled last week at Eur1,105/mt FD NWE, mt, down $22/mt on the week. PP CFR North Africa was
sources said. The rollover came despite the slump in assessed stable on the week at $1,570/mt.
naphtha, as the euro fell. Naphtha collapsed to $810.75/
mt CIF NWE Tuesday, a 17-month low. Meanwhile, United States
the euro was trading at $1.2604/mt against the dollar A surge in feedstock prices and unplanned outages were
Wednesday, a near two-year low. The weakness of the fueling US polypropylene producers’ push for aggressive
euro sustained exports from Europe to South America, increases for October, with at least two major producers
Turkey and unusually to the US, an arbitrage rarely open, announcing double-digit hikes this week. Formosa Plastics
according to sources. FOB NWE PP homo was assessed Corporation USA and Total Petrochemicals both announced
at $1,500/mt, the fall driven by the dollar strength. increases of 10.5 cents/lb for October on Tuesday, taking
In the domestic market, PP homo prices were heard at some market participants by surprise. “So much for a
Eur1,230-1,280/mt FD NWE, with Eur1,250/mt FD NWE down-2 cents/lb for October,” a distributor source said
heard as a repeatable number. Offers for October were up, Wednesday. The source was referring to expectations in
sellers attributing the rise to the import window being early September of a possible decrease to start October.
shut. In the contract market, European producers were Formosa and Total’s increase nominations were standalone,
targeting a rollover-to-slight increases citing buoyant meaning they were not tied to PGP. Formosa first began
sales. “Lot of converters historically importing are buying to move away from monomer-plus formulas for contract
from us,” one European producer said. “Producers are purposes in 2013, and Total is following suit, arguing that
optimistic about demand as the euro is weak, therefore PP pricing should reflect all market dynamics, not just
no additional [import] volume will come to Europe,” cost, sources have said. A majority of contracts for the US
one converter said, adding he was rejecting increases. market remain on monomer-plus basis, and for participants
The CP was assessed flat on the week at Eur1,422.50/mt tied to these arrangements, steep hikes were also possible
FD NWE. In the Turkish market, local producer Petkim because of recent spot monomer behavior. Spot PGP was
reduced list prices earlier in the week, and for the third heard trading Wednesday at 76.50 cents/lb pipeline basis,
time in September to $1,760-1,785/mt FCA Aliaga. while spot refinery-grade propylene was bid at levels of
Petkim was not immediately available to confirm. “PP 74 cents/lb pipeline basis earlier this week. With PGP
raffia is virtually hopeless with no demand,” one trader contracts last settling at 72.50 cents/lb for September, the
said, pegging offers from the Middle East at $1,500- recent developments in the spot market have emboldened
1,510/mt CFR with no corresponding buy interest. In at least one olefins producer, which revised its increase
production news, issues were heard at PKN Orlen and nomination up to 8 cents/lb from 5 cents/lb this week.
LyondellBasell’s joint venture petrochemical site in “Refinery-grade (propylene)” is the key,” a source with a
Poland. The PP force majeure declared by LyondellBasell major PP producer said. Platts assessed September contract
at the end of June continued, the company on Friday prices for September at 83 cents/lb for homopolymer
also declared force majeure on HDPE supplies from Plock. injection and 84 cents/lb for fiber grade, unchanged from
Lyondell declined to comment. On Wednesday, there August. Further pressuring the market up were planned
was a fire at the PKN Orlen’s steam cracker. The olefin and unplanned outages extending into the fourth quarter.
unit has two production lines. One of the lines was in ExxonMobil Chemical on Wednesday said it was putting
start-up mode when the fire occurred. PKN said that line some grades of polypropylene produced at its Baton Rouge,
is expected to start production Wednesday despite the Louisiana plant on sales allocation because of operational
accident. The other line is offline and will be returned to difficulties, according to a letter to customers obtained by
production once it is deemed safe to do so, PKN said. Platts. No further details or timeframe for the allocation was
provided in the letter. Export assessments rose $44/mt week
Africa on week on stronger feedstock pricing, with homopolymer
Middle East producers nominated October list prices injection at $1,863-$1,885/mt FAS Houston and co-polymer
for polypropylene at rollover or slight reductions in an at $1,885-1,907/mt FAS Houston. No export deals, offers
environment of flat demand. Sabic nominated the price or bids on an FAS Houston basis were heard for the week.

In the absence of market activity, the assessment was restart date could be end of October or early November.
based on recent spot PGP pricing. US-origin polypropylene We have not received instruction from the planning side to
continued to be disadvantaged in the international market gather market information yet and so I expect the plant to
because of its high price levels, with CFR pricing into South remain shut in the next couple of weeks,” the source said.
America remaining at levels of $1,700/mt for homopolymer The complex was shut July 6 due to a mechanical fault at
grades and below $1,750/mt for co-polymer grades from the steam cracker. The latter can produce 700,000 mt/year
regions including Asia and the Middle East, sources in Peru of ethylene and 350,000 mt/year of propylene and provides
and Brazil said. Back in North America, the possibility of feedstock to a 330,000 mt/year high density PE plant, a
steep price increases had taken some market participants 370,000 mt/year HDPE/linear low PE swing plant and a
in Mexico by surprise. “No one saw this two weeks ago,” 350,000 mt/year polypropylene unit.
a source with a Mexico City-based distributor said. The
Mexican polypropylene market is closely tied to the US Latin America
market in pricing, given that more than half its apparent Polypropylene import assessments into South America were
demand is supplied by its northern neighbor, sources said. flat this week as pricing in Asia was stable to lower. Import
assessments into Peru for homopolymer was assessed
Asia Wednesday at $1,670-$1,680/mt CFR basis and co-polymer
The CFR Far East Asia marker for PP raffia grade was at $1,710-$1,720/mt CFR basis. One Peru based buyer
assessed $5/mt lower week on week and flat day on day at indicated the prices were heard the same. No deals, offers
$1,480/mt Wednesday. Offers during the week were heard or firm bids were heard for the week. Previously, regional
between $1,490/mt and $1,540/mt on an L/C 90 days basis. producers and suppliers were heard offering at higher levels
There was also an offer heard at $1,480/mt CFR China, but willing to negotiate product in the low-$1,700s/mt, a
however this could not be verified. The market was quiet trading source said. In Brazil, pricing was stable week on
as most market participants in China were already out due week, with assessments for homopolymer and co-polymer
to the Golden Week holiday starting Wednesday. “Demand at $1,675-$1,685/mt and $1,715-$1,725/mt CFR basis,
has softened since people were going to holidays and respectively. The movement in Brazil and Peru has appeared
they didn’t want too much inventory,” one supplier said. to mirror pricing trends in Asia, sources in those markets
Looking ahead, market sentiment was mixed. Some said have said. For exports out of Brazil, assessments remained
they expect prices to rebound a little following the long flat as lackluster demand and lower offers into the region
holiday in China, as end users who kept their inventory continued. Homopolymer was assessed at $1,650-$1,660/
low will need to buy some product. On the other hand, mt FOT basis and co-polymer at $1,690-$1,700/mt FOT
some sources expect market to gradually weaken. One basis. Braskem’s average export pricing for September
trader said: “Demand in China has not been picking up polypropylene was stable to August, a source with
and so I expect a gentle descent.” A second trader said knowledge of company pricing said this week. FOT basis
that new coal-to-olefin capacity this year has been putting pricing, which is for Brazil product exported to Mercosur
downward pressure on domestic PP prices in China and this countries, does not include freight costs, estimated by
was also affecting demand for imported PP. The Southeast sources at $100-$120/mt. Market watchers in Mexico are
Asia marker for PP raffia grade was assessed flat on week continuing to keep an eye on US spot propylene prices,
at $1,510/mt. Offers were heard at $1,510-1,520/mt CFR and its contract prices for October, which could possibly
Southeast Asia. Deals were also heard concluded at $1,510- influence North American PP pricing, sources said.
1,520/mt CFR Southeast Asia during the week, according
to sources. “There is fear in the market. Some people saw
China prices dropping as the holidays were coming. If Polystyrene
China is weak, Southeast Asia will follow,” a trader said.
He added that buying sentiment has weakened. “Buyers Europe
are holding off because they predict prices will come down The polystyrene market saw mixed developments this
as oil prices have fallen,” he said. Meanwhile, the South week in Europe, with contract prices holding stable for
Asia marker fell amid lower offers compared with a week the time being in the wake of the styrene CP settlement,
earlier. The PP raffia grade was assessed at $1,535/mt CFR and spot prices continuing their descent pressurized
South Asia, down $20/mt week on week. Offers were heard by imported product availability. Contract prices were
at $1,535-1,545/mt CFR India. A trader said that although assessed unchanged week on week at Eur1,505/mt for
initial negotiations started at $1,570/mt, deals were general purpose product, Eur1,585/mt for high-impact and
concluded “close to $1,540/mt CFR India on an L/C 90 days at Eur1,540/mt for expandable polystyrene. Spot prices
basis.” In related news, Haldia Petrochemicals’ naphtha-fed were assessed at Eur1,395/mt, down Eur20/mt for GPPS,
steam cracker and associated downstream polypropylene Eur1,480/mt, down Eur20/mt for HIPS, and Eur1,475/
and polyethylene units at Haldia in India’s West Bengal mt, down by Eur10/mt for EPS. Feedstock styrene’s CP
state are expected to remain shut throughout most of for October was fully settled at a rollover Wednesday at
October, a company source said Wednesday. “The earliest Eur1,390/mt. This meant that styrene producers had to give

away another Eur4/mt of their margin, as composite costs a producer said. This follows a relatively disappointing
were Eur4/mt up from last month due to a slight increase September, when demand remained below everyone’s
in benzene. Despite the stability in euro terms, the dollar expectations, and plants had to operate at around 80% of
price was down significantly — by more than $76/mt from their nameplate capacity, according to sources.
last month. The value of the single European currency
against dollar sank over the past month from 1.3134 Africa
September 1 when the September CP settled to 1.2604 North African polystyrene prices remained unchanged this
Wednesday. Negotiations for October polystyrene CPs were week at $1,760/mt CFR North Africa. Sources said that the
yet to start, but several sources voiced the likelihood of demand for polystyrene in the region was better than the
them rolling over for October. One producer said, however, demand for other polymers, however, supply remained
that he was planning to achieve an increase for October. healthy too. One trader pegged spot prices at $1,800/
“We have good order books. Imports have become less mt, but this level was not corroborated by the rest of the
visible. Demand is good, as all converters were expecting market, and the most competitive offers which were heard
a decrease in styrene and were postponing their purchases last week at around $1,780/mt were not disproved.
until October. They are now knocking on the door,” he
said. Converters were targeting decreases, however, citing United States
a seasonal slowdown in demand. “Demand in June-July October US domestic contract prices were expected to
was very high, August, as always, was low and September drop further from September, but how much of a drop
was better, but not as good as expected,” a converter said. would occur was still being discussed. Americas Styrenics
“We do not expect any improvements in October, so it announced a decrease of 4 cents/lb ($88/mt) in its
will not be possible for producers to get a rollover this transaction price for all grades of polystyrene produced
time, let alone an increase.” In the spot market GPPS was by the company, effective October 1, according to a
heard offered at Eur1,400/mt FD NWE, and HIPS was heard statement the company released Tuesday. Americas
offered at Eur1,500/mt. Weakness in the euro against the Styrenics cited weakening feedstock costs, primarily in
dollar curtailed competitiveness of product imported, for benzene, for the decrease. The decrease announcement
example, from the Far East. “The import window closed and came as a surprise to many in the market who were
there might be an upward correction,” a trader said. In Asia expecting lower contract prices for October but were
PS prices were stable to slightly lower amid Chinese demand not anticipating an announcement of lower prices.
slowdown due to a public holiday and cheaper feedstocks. Buyers were heard to be pushing for at least a 4 cents
GPPS was assessed at $1,605/mt CFR China, down by $5/ decrease in October following another decrease in the
mt, and HIPS’s price was assessed stable at $1,705/mt. feedstock benzene contract price. Another seller was
Polymers’ freight rate from Asia to Europe was around $90/ heard to be seeking down 2 cents from September on
mt, leaving the arbitrage still open on paper. Sources said polystyrene prices. September US domestic contract
that traders were unlikely to take advantage of this arbitrage prices settled 4 cents lower than August, sources said.
though, as product would arrive only in November, when September contracts were assessed at 122-124 cents/
demand tails off. Imports from Russia, however, continued lb delivered for general-purpose polystyrene, while
to have an advantage as the ruble continued to fall against September high-impact polystyrene contracts were
all major currencies this week: the euro was worth 50 rubles assessed at a 10-cents/lb premium to GPPS at 132-134
Wednesday compared to last week’s 48.8668. “Keeping cents/lb. The drop in September and anticipated drop
the same euro price, Russian exporters can earn more in in October pricing came on the heels of tumbling
rubles,” a source said. However, European traders remained benzene contracts. Benzene contracts fell 36-37 cents
cautious about imports from Russia due to the continuing in September to settle at a 469-470 cents/gal split, and
geopolitical tensions between the West and Russia. “No October contracts dropped another 47-48 cents to settle
one wants to be trapped by sanctions, no one will dare to at 422 cents/gal, sources said. Since benzene contracts
move much product from there,” one producer said. There peaked at 528 cents/gal in July, the contract price has
was still Egyptian product on offer too both in Europe and declined 106 cents as downstream demand has quieted.
in Turkey. Expectations for demand in the expandable A movement of 10 cents/gal in benzene is equal to 1
polystyrene market in October were relatively buoyant. cent/lb in styrene and polystyrene production costs,
Sources said that the insulation works which normally take industry sources have said, meaning the 106 cents/gal
place ahead of winter would support the offtake, at least drop in benzene contracts would equate to between
in the first half of the month. As a result, producers were 10-11 cents in styrene and polystyrene production costs.
keen on sustaining prices for October at the September Because of this fall and only a 4 cent drop in September
levels. The bulk of September contract business was settled for polystyrene contracts, sources said the anticipation
in a range of Eur1,540-1,560/mt FD NWE, and these should was for more of a decrease. Back in PS, demand was
roll over into October, sources said. “October is the last heard steady, while supply was heard tight, but buyers
high-season month for us. Besides, as traders bring less were having no issues getting product. In the export
product from abroad, we see a full order book for October,” market, the GPPS and HIPS assessments were stable week

on week at $1,995/mt FAS Houston and $2,095/mt FAS Acrylonitrile Butadiene Styrene
Houston, respectively. US prices continued to be too
high compared to other regions, with HIPS offers out of Europe
the US last heard in September at just below $2,100/mt The European ABS market continued to be boosted by
FAS Houston and GPPS prices heard just below $2,000/ currency exchange movements this week, with producers
mt FAS Houston. feeling a double impact of lower imports and better export
opportunities. The contract ABS price was assessed at
Asia Eur1,695/mt FD NWE for a natural grade, stable week on
GPPS: Asian general purpose polystyrene was assessed week. Average color and auto black colour grades retained
down $5/mt week on week at $1,605/mt CFR China their premiums. Producers were positive that given the
and $1,645/mt CFR Southeast Asia Wednesday at the current order intake for the month, they would be able to
start of China’s Golden Week holidays and amid lower push for an increase or at least to roll over their September
feedstock prices. Styrene monomer dipped $8/mt week prices to further recover the margins they lost over summer.
on week to $1,504.50/mt CFR China Wednesday. On “Q4 is normally good for ABS production in Europe. October
Tuesday, Taiwan’s Chi Mei lowered its offer price by is the strongest month so far. We will have an opportunity
$30/mt to $1,700/mt CIF Hong Kong. Offers from other to recover some margin,” a producer said. “Besides we have
producers were confirmed from $1,630/mt CFR China better export outlets now.” In Asia, the CFR China price was
and upward, but sellers also said there were offers close assessed at $1,915/mt this week, up by $5/mt. The styrene
to $1,600/mt CFR China and likely also below that level. contract price for October settled at a rollover at Eur1,390/
In Southeast Asia, an offer from a regional producer mt. The butadiene CP settled at a Eur25/mt decrease at
was heard at $1,650-1,660/mt CFR Southeast Asia main Eur930/mt. It was still unclear where ACN contracts would
ports, and a separate major producer in the region said settle for October, because despite the rollover on propylene
prices were hovering around $1,650/mt CFR Southeast and a generally bearish sentiment, the hike in ammonia
Asia. HIPS: High-impact polystyrene was assessed stable prices could lead to an increase in the ACN price, sources
week on week at $1,705/mt CFR China and down said. The average spot ACN price in September was $1,995/
$10/mt at $1,720/mt CFR Southeast Asia. Offers were mt CIF Med, down from $2,015/mt in August.
heard this week around $1,710/mt CFR China, while
an offer to Southeast Asia from a South Korean seller United States
was heard around a similar level, albeit with a longer The US acrylonitrile-butadiene-styrene domestic assessment
shipment time. On Tuesday Taiwan’s Chi Mei lowered was unchanged to start the month at 123 cents/lb delivered
its offer price by $50/mt to $1,820/mt CIF Hong Kong. railcar Wednesday, as the market continued to monitor
The premium of competing co-polymer acrylonitrile- feedstocks for direction. ABS domestic pricing continued
butadiene-styrene to HIPS has widened by more than to be talked at 123-126 cents/lb delivered, but sources said
four-fold so far in 2014 compared with a year earlier the direction of pricing was tough to tell at this point as
on falling styrene monomer prices, Platts data shows. feedstocks were mixed. ABS demand was steady, while supply
The premium was assessed at $210/mt Wednesday, was available, sources said. In feedstocks styrene was assessed
with HIPS stable at $1,705/mt CFR China and ABS 0.75 cent lower on the week at 66.50 cents/lb FOB USG,
up $5/mt at $1,915/mt CFR China. The average price tracking lower feedstock benzene spot and contract prices.
gap between the two SM derivatives, which can have Spot benzene fell 5 cents on the week, assessed Wednesday
overlapping uses especially in the electronics sector, at 422 cents/gal FOB USG, while the October US benzene
was only $33.80/mt for the whole of 2013, but that contract price settled 47-48 cents lower than September
has widened to $143.70/mt for the first nine months at 422 cents/gal, sources said. In butadiene, spot pricing
of this year. In 2013, the spread even briefly flipped to dropped 2 cents on the week to an assessment at 53 cents/
a discount for ABS on a couple of occasions, while in lb CIF USG Friday on weak demand and ample supply. The
2014 the premium has recently hovered above $200/ October US butadiene contract settled 2 cents lower than
mt. The widening premium for ABS could result in September at a 54-60 cents/lb split, sources said. The US ACN
lower demand as HIPS prices become more competitive, export assessment was stable on the week at $1,925/mt FOB
market sources said, but they also added that no big USG Tuesday. ACN feedstock propylene was expected to rise
shift towards more use of HIPS had yet been seen among in October, with contract nominations heard as much as 8
end-users in Asia. EPS: Expandable polystyrene prices cents/lb higher than September, sources said.
were assessed up this week by $15/mt to $1,690/mt for
general purpose and up $5/mt to $1,730/mt for flame Asia
retardant, both on an FOB Northeast Asia basis. A Major Asian acrylonitrile-butadiene-styrene was assessed up $5/
Chinese producer reported deals done at the price levels mt week on week at $1,915/mt CFR China and down $15/
assessed and with the Chinese market closed for a week mt at $1,910/mt CFR Southeast Asia Wednesday in a mixed
from Wednesday this week, sellers elsewhere might have market ahead of China’s week-long Golden Week holidays
a chance to sell at higher prices. and falling feedstock prices. Major producer Taiwan’s Chi

Mei lowered its offer by $30/mt to $2,000/mt CIF Hong were already looking for a rise in both virgin spot and
Kong Tuesday, but a buyer in Hong Kong said this was still contract prices for October. One producer said that it
considered high as retail prices for Chi Mei’s material were was targeting a spot price of Eur1,070-1,090/mt FD NWE.
only $2,000/mt at the moment. Other producers were heard Producers also pointed to the weaker euro versus the
to be offering as low as $1,910-1,920/mt CFR China, but dollar which has dropped by around 10% to $1.2604 on
the lowest confirmed offer and reported deal level this week October 1, from $1.3931 on May 6, according to Platts
was $1,940/mt CFR China, from a South Korean producer, data. Despite the producer clamor for higher prices,
although the deal could not be confirmed with any buyer. consumers and traders both said that with the addition of
In Southeast Asia, a South Korean seller was able to offer at PET capacity going forward buyers would not accept prices
$1,900-1,920/mt CFR Southeast Asia, depending on freight above the Eur1,050-1,070/mt FD NWE level. Contract
costs, but added demand in the region was weak. Looking expectations for October were reported at a Eur20-30/
at feedstock prices, styrene monomer fell $8/mt week on mt premium above the spot price or at around Eur1,080/
week to be assessed at $1,504.50/mt CFR China Wednesday, mt FD NWE. One buyer felt that these twin arguments of
while butadiene fell a sharp $75/mt over the same period the weak euro and the maintenance period were likely to
to $1,435/mt CFR China. Acrylonitrile fell $25/mt week be counterbalanced by additional PET capacity coming
on week to $2,010/mt CFR Far East Asia, assessed Tuesday. into the market and the weak seasonal demand inherited
Based on these prices and a conversion cost of $280/mt, from the summer. “We had a bad summer, always weak
the breakeven price of ABS was estimated at $1,900.50/ demand. These two arguments are really killing the rest
mt, down $22.30/mt from the week before. The premium [the producers’ reasons]. This is the time that you are
ABS commands over competing co-polymer high-impact offering October [volumes] but nobody is in a rush or
polystyrene has widened more than fourfold to date in needs to cover as they have so many [supply] options,”
2014 on falling SM prices, Platts data showed. The premium a trader said. The same source said that a deal may have
was assessed at $210/mt Wednesday, with HIPS at $1,705/ even traded as low as Eur1,040/mt FD Germany although
mt CFR China and ABS at $1,915/mt CFR China. The this level could not be corroborated. Over the past year,
average price gap between the two SM derivatives, which new plants have already been opened in the UK and
can have overlapping uses especially in the electronics Belgium, as well as in Egypt and Turkey, adding around
sector, was $33.80/mt over 2013, but widened to $143.70/ 842,000 mt/year. In the next few months, India’s JBF
mt over the first nine months of this year. In 2013 the Industries is expected to start its second 216,000 mt/year
spread even briefly flipped to a discount for ABS on a PET line in Geel, Belgium, and Polyplex is expected to
couple of occasions, while in 2014 it has recently hovered start its 210,000 mt plant in Corlu, Turkey, after a year’s
above $200/mt. The widening premium for ABS could result delay. In addition, EIPET’s second line in Ain Sokhna,
in lower demand as HIPS prices become more competitive, Egypt, would add another 210,000 mt/year of capacity
market sources said. However they added no big shift and serve Europe as well as Asia and the US. Meanwhile,
towards HIPS had yet been seen in Asia. Equipolymers has delayed the start of a scheduled
maintenance at its 350,000 mt/year Schkopau facility in
Germany until the end of October, a company source said
Polyethylene Terephthalate Monday. The maintenance, which takes place once every
four years, was originally due to start on October 16. The
Europe company plans to take down one of the plant’s two lines
European polyethylene terephthalate contract prices for five to six weeks. In the upstream contract market, the
were assessed at Eur1,075/mt, unchanged this week on NWE September monoethylene glycol contract settlement
balanced demand/supply as weak demand contrasted was fully settled at Eur920/mt ($1,172/mt) FD NWE,
with the start of the turnaround season. Spot prices, on Shell confirmed Tuesday, settling with consumer Arteco.
the other hand, rose $5/mt to be assessed at Eur1,055/mt PET producer Indorama confirmed settling the initial
as suppliers were able to achieve firmer prices. Neogroup September settlement with Ineos last week. Ineos was not
has this week started a six-week shutdown of one of two available to confirm. The initial August CP of Eur943/
lines at its 310,000 mt/year Klaipeda, Lithuania, plant, mt was fully settled last week with Indorama and Ineos
a company source confirmed Wednesday. “Half of the settling, whist Indorama also confirmed initially settling
factory [one line] will be closed — we are shutting down the September contract at Eur920/mt.
one line til mid November [and] will be running 18,000
mt per that period,” the Neogroup source said. It marks US
the start of a series of scheduled plant maintenances in Spot PET prices were assessed at 1,554-$1,576/mt DDP
Europe, with Indorama’s Rotterdam, Novapet’s Barbastro, US West Coast (71 cents/lb), up $33/mt week on week.
Spain, and Equipolymers’ Schkopau, Germany, shutdowns Sources talked prices in the 70-72 cents/lb range A market
following that. In total, this will take out the equivalent source noted that sellers were offering product to the US
of approximately 865,000 mt/year of capacity in October. above normal netback levels due to ongoing tightness
With the the shutdown period in mind, PET producers in the market because feedstock PTA shortages. Prices in

Asia remained steady this week, assessed at $1,208/mt North American producers keeping prices steady —
FOB Northeast Asia and $1,248/mt FOB Southeast Asia, in because Asian contract price announcements were down
a quiet market as China began a weeklong public holiday. $30-60/mt from September levels.
There were some expectations that US capacity could
pick up later in the month as BP was expected to restart Asia
the fire-damaged PTA unit at its Cooper River, South Asian polyethylene terephthalate prices were assessed
Carolina, facility. However, sources cautioned that supply flat week on week at $1,208/mt FOB Northeast Asia and
could still remain tight as the facility would likely run at $1,248/mt FOB Southeast Asia Wednesday, as major China
about 50% capacity initially, with one source adding that market was quiet on the first day of a weeklong public
it and may not be back at full run rates until February. holiday. Producers in South Korea, Malaysia and Indonesia
September US PET contracts were assessed at $1,687- said demand remained thin, given the off-peak season
$1,709/mt (76.5-77.5 cents/lb), with multiple sources from European bottle makers and a weak euro against
saying contracts settled at 76-78 cents/lb for the month. the US dollar. “PET inventories are currently below safety
Depsite tightness in the market, there was some talk that levels,” said a Malaysian producer. PET demand should
domestic prices could see a marginal drop in October as begin to pick up before the end of Q4, as inventories have
feedstock pricing continued to move lower. Spot PX was to be replenished for the Christmas and New Year peak
assessed Wednesday at $1,150/mt FOB USG, down $40/ seasons, suppliers said. PET producers in Southeast Asia are
mt week on week. The US paraxylene contract, the key said to be operating at 80-85% of capacity. A South Korean
variable used to set the PTA price, had not been settled producer said small volumes of 100-500 mt parcels have
for October. The September PTA price was heard set at been sold to Vietnam at $1250-1,260/mt CFR. Another
56.47 cents/lb, a decrease of 2.68 cents/lb from August. South Korean producer has declined sales to China,
US MEG contracts for fiber and PET makers were expected preferring to offer to the CIS/Russian market at $1,230/mt
to move slightly lower in October — despite talk that Fob Korea for 500-mt parcels.

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) 903.00-907.00 906.600-910.600 FOB USG A/F* 44.50-45.50
CIF NWE ($/mt) 1118.00-1122.00 1118.000-1122.000
CIF MED ($/mt) 1188.00-1192.00 – Fiber Grade Monthly Contract Price (SEP ): 48.60-49.10 FOB USG
Asia ($/mt)
Monthly Contract Price (Sep): 1150.00-1150.00 FD NWE (Eur/mt)
US (¢/lb) Spot Friday Weekly Average
CFR China 907-909 893.2-895.2
Spot Friday Weekly Average
CFR SE Asia 910-912 (1) –
FD USG M1 SEP 70.500-71.000 72.050-72.550
FD USG M2 OCT 67.500-68.000 68.450-68.950
MEG CP Nomination (OCT) – CFR Asia
MEGlobal: 1120 Sabic: 1120 Shell: 1100
Posted Contract Price (SEP ): NA-NA Delivered
Net Contract Price (SEP ): NA-NA Delivered (1) CFR SE Asia = CFR Indonesia.Note: *A/F denotes anti-freeze grade Asian ethylene glycol
assessments are basis L/C 90 days.
Asia ($/mt)
Spot Friday Weekly Average Polymer Feedstocks – Butadiene
FOB Korea 1509-1511 –
CFR SE Asia 1514-1516 1514.0-1516.0 Europe
CFR NE Asia 1549-1551 1553.0-1555.0 Spot Friday Weekly Average
Asian ethylene spot assessments reflect LC 0-30 days. CFR SEA = CFR Indonesia/Thailand. FD NWE (Eur/mt) 865.00-868.00 880.200-884.000
FOB Rdam ($/mt) 1098.00-1102.00 1138.000-1142.000
Polymer Feedstocks – Propylene
Butadiene Monthly Contract FD NWE SEP: 955.00-955.00 (Eur/mt)
Europe (Eur/mt)
US (¢/lb)
Poly Grade Spot Friday Weekly Average
FD NWE 1042.00-1046.00 1045.600-1049.600 Spot Friday
CIF NWE 1042.00-1046.00 1045.600-1049.600 CIF USG 52.50-53.50
Chem Grade Spot Friday Weekly Average
FD NWE 948.00-952.00 – Monthly Contract Price (Sep ) 56.00-62.00
CIF NWE 918.00-922.00 – Asia ($/mt)
Spot Friday Weekly Average
Poly Grade Monthly Contract Price (Sep): 1105.00-1105.00
FOB Korea 1404-1406 1461-1463
US (¢/lb) CFR Taiwan 1449-1451
Spot Friday Weekly Average CFR SE Asia 1414-1416 (1)
dlvd USG dlvd USG CFR China 1439-1441 1496-1498
Ref Grade 73.250-73.750 67.650-68.150
(1) CFR SE Asia = CFR Indonesia. *A/F denotes anti-freeze grade.
Poly Grade 74.500-75.000 –
Chem Grade 73.750-74.250 –
Poly Grade Contract Price (SEP ): 72.500-72.500 Delivered Platts Global Ethylene Prices ($/mt)
Chem Grade Contract Price (SEP ): 71.000-71.000 Delivered
Asia ($/mt)
1800
Spot Friday Weekly Average CFR FE Asia FD NWE FAS Houston
FOB Korea 1294-1296 1296.0-1298.0
CFR Taiwan 1304-1306 – 1600
CFR SE Asia 1234-1236 –
FOB Japan 1249-1251 –
CFR China 1344-1346 1349.00-1351.00
1400
Asian ethylene spot assessments reflect LC 0-30 days. CFR SEA = CFR Indonesia/Thailand.
Polymer Feedstocks – Ethylene Glycol Assessments 1200

Europe
Spot Friday
1000
FCA NWE T2 (Eur/mt) 790.00-800.00
FD NWE T2 (Eur/mt) 820.00-830.00 08-May 03-Jun 26-Jun 21-Jul 14-Aug 08-Sep 01-Oct
CIF NWE T2 (Eur/mt) 785.00-795.00
CIF NWE T2 ($/mt) 997.00-1009.00
Notes: All olefin prices reflect assessments at close of previous Friday.
Monthly Contract Price (Sep ) – (Eur/mt) NA-NA

Ethylene Market participants said that both of the furnaces at the

La Porte project are expected online by the end of the
Europe month, however the company source did not confirm
The October European ethylene contract price settled the exact time frame. October deliveries marked a 5.25
at Eur1,150/mt FD NWE Thursday, a rollover on cents/lb drop for the week assessed at 67.5-68 cents/lb FD
the month. The initial price was set by Clariant as a USG. ExxonMobil Chemical is also expected to complete
buyer with LyondellBasell, BASF and BP Refining and the ongoing turnaround at its Baytown Olefins Plant
Petrochemicals. It was followed by Vinnolit with BPRP. in Baytown, Texas, in late October. In markets Friday,
All parties confirmed. The CP rollover came despite September was heard offered at 73 cents/lb MtB Wms,
the slump in feedstock naphtha. Expectations for the while October bids were heard at 67 cents/lb MtB Wms.
settlement had been mostly bearish because of naphtha. On Thursday, October was heard traded four times as low
It closed Friday at $817.75/mt CIF NWE, an more as 67.75 cents/lb MtB Wms and as high as 69.25 cents/lb
than 15- month low; by contrast, when the ethylene MtB-other, while September and March were heard traded
CP settled for September on August 28, naphtha was at 70.75 cents/lb MtB Wms and 60.25 cents/lb MtB Wms.
trading at $868.25/mt CIF NWE. The rollover came One October deal was heard Wednesday at 68.5 cents/
also despite a further dip in spot prices to Eur905/mt lb MtB Wms, while April and May were each heard
FD NWE. Abundant supplies and falling naphtha prices concluded at 61.75 cents/lb MtB Wms. On Tuesday,
continued to pull prices down, sources said. Three trades four December deals were heard at 65.25-66.5 cents/lb
for September delivery were heard this week: Eur910/ MtB Wms, while October was heard concluded at 68.25
mt FD NWE for 2,000 mt was done twice and this fell cents/lb MtB Wms. September was heard traded twice
to Eur905/mt FD NWE for 500 mt on Thursday. In the on Monday at 76 cents/lb MtB-other. Downstream, US
deepsea market, a 12,000 mt cargo was fixed to Asia, HDPE contract prices climbed 3 cents/lb for September, as
for H1 October loading. Sources said that freight had producers were heard successful in their attempts to raise
climbed to $400/mt for cargoes less than 5,000 mt, prices for the first time since February. HDPE contracts
but was in the low $300s/mt for this large fixture. The have risen 7 cents/lb since the start of the year. Earlier in
Asian market was also getting saturated with European the week, Equistar Chemicals said in a letter to customers
product. The CFR Northeast Asia ethylene benchmark that it plans to implement an additional 3 cents/lb
fell $5/mt day on day to be assessed at $1,550/mt increase for all grades of North American PE effective
Friday. As the dollar continued to strengthen, the CIF October 15. Additional producers were yet to follow
NWE price was assessed stable on the week at $1,120/ Equistar’s lead by time of publications.
mt. The euro hit fresh lows against the dollar trading
at $1.2698 Friday afternoon. In production news, Latin America
Borealis will permanently shut its Burghausen high Ethylene export availability out of Brazil remained limited
density polyethylene plant in Germany this weekend, because of a plant turnaround, but strong pricing in the
a company spokeswoman said Friday. The HDPE plant US Gulf Coast made for a tempting proposition, market
will be permanently shut as an OMV cracker at the same sources said this week. “We don’t see a big surplus right
site begins a maintenance outage, she added. The OMV now,” a source close to Braskem said. “But, of course, the US
steam cracker at Burghausen has a capacity of 450,000 market is really interesting right now regarding the level of
mt/year. The cracker will undergo maintenance through prices.” The Brazilian producer was in the midst of a 35-day
mid-November, Borealis previously said. Also, Eni will turnaround at its Sao Paulo steam cracker and complex,
permanently close its 490,000 mt/year steam cracker which has an ethylene production capacity of 700,000 mt/
at Porto Marghera in northern Italy and mothball the year. The mandatory turnaround, which began September
aromatics plant there, it said in a statement Tuesday. 6, is expected to conclude October 10. Spot ethylene was
The cracker was temporarily idled in January this year assessed Friday at 70.5-71 cents/lb ($1,554-$1,565) FD USG
on poor economic conditions. after hitting all-time highs of 76.25 cents/lb a week earlier.
In Argentina, Dow ethylene production at Bahia Blanca was
United States running under normal conditions, a source with knowledge of
US spot ethylene dropped 5.5 cents week on week, company operations said. Last week, a source with knowledge
assessed Friday at 70.5-71 cents/lb FD USG for September of company operations confirmed Dow was readying a 5,000-
delivery, following positive sentiment from a mid-week mt volume for export out of Bahia Blanca during the first
restart of production capacity expansion, sources said. week of October. In downstream markets, polyethylene prices
US olefins producer LyondellBasell is starting up its continued to trend higher in Brazil, with Dow and Braskem
800 million lbs/yr expansion of its 1.75 billion lbs/yr heard raising prices again for October. Dow Brasil is seeking
steam cracker in La Porte, Texas, a company source with a Reals 200/mt ($83/mt) increase on domestic polyethylene
knowledge of operations said Wednesday. “We are in prices effective October 1, the company said in a letter to
the process of commissioning the new equipment; new customers that was obtained by Platts. Import prices into the
furnaces expected to be on line soon,” the source said. region were mixed amid lackluster demand.

Asia Clariant as a buyer with LyondellBasell, BP Refining and

The CFR Northeast Asia ethylene benchmark fell $5/ Petrochemicals and BASF as sellers, a source from the
mt day on day to be assessed at $1,550/mt Friday as spot buyer said. LyondellBasell was not immediately available
demand from China wanes ahead of the long holiday in to confirm. BPRP did not confirm. BASF confirmed. The
early October. Ethylene supplies increased this week with a expectations for the settlement have been mostly bearish
spot 3,000-4,000 mt cargo heard sold for October loading following the recent slump in feedstock naphtha. Naphtha
from Taiwan. The arbitrage window from Europe to Asia closed Friday at $817.75/mt CIF NWE.
remains open, with 9,000-12,000 materials heard fixed for
H1 October loading this week. Late Thursday, an October- United States
arrival cargo was heard sold at $1,550/mt CFR China. “It US monoethylene glycol prices were assessed Friday at
seems that the Asian ethylene market weakened a little 44.50-45.50 cents/lb FOB USG, down a half cent week on
because of the Chinese national day holidays,” a trader week. Sources said MEG deals were scarce and there had
said. China’s petrochemical demand typically decreases been little-to-no price movement, with multiple sources
around early October due to the annual long holiday. But pegging barge prices at 45 cents/lb. “MEG deals are scarce
the price decline in the Asian ethylene market was limited but prices are holding flat in the mid-40s,” a trader source
due to planned maintenance of steam crackers, especially in said. High spot ethylene prices and production issues have
South Korea. “Spot ethylene supplies from South Korea are helped keep US prices relatively steady despite declining
limited because of cracker shutdowns, which seems to be prices in the Asian markets. Front-month spot ethylene
supporting the Asian ethylene market,” another trader said. prices declined 5.5 cents/lb week on week, assessed Friday at
FOB Korea ethylene ticked down $5/mt week on week to be 70.5-71 cents/lb FD USG for September, while October was
assessed at $1,510/mt Friday. CFR Southeast Asia ethylene assessed at 67.5-68 cents/lb FD USG. Asian MEG prices were
was assessed flat day on day at $1,515/mt Friday. Supplies mostly stable week on week, with sources saying that short-
were reported to be tight as Singapore’s Shell is due to shut covering by traders had helped prop the price up Friday.
its naphtha-fed steam cracker soon. Shell’s 800,000 mt/year Platts assessed Asian markets Friday at $908/mt CFR China
steam cracker at Pulau Bukom is due to be shut for about and $911/mt CFR Southeast Asia, down $1/mt week on
three months for annual maintenance and debottlenecking. week. There were expectations that US MEG demand would
pick up as antifreeze season neared, sources said. September
US MEG contracts for fiber and PET makers were assessed
Ethylene Glycol at 48.85 cents/lb ($1,077/mt) based on producer discounts
for large-volume buyers. There was market talk that North
Europe American producers were rolling over prices for October.
European MEG prices were assessed at Eur795/mt FCA “Ethylene price is still too high to cut glycol prices,” a buyer
NWE, stable versus last week’s assessment on balanced source said. Asian contracts were set to move lower, which
demand/supply as sellers were not budging to lower offers could lead to some price decreases for US buyers. MEGlobal
from the Eur810/mt FCA level. Buy interest was supported and Sabic both nominated October prices at $1,120/mt
at Eur780-790/mt in the week that the August contract CFR main port, down $60/mt and $30/mt respectively.
was settled and an initial September contract was reported Shell nominated its October ACP at $1,100/mt CFR Asian
settled also. No full confirmation had yet been received. main ports, down $60/mt. In production news, sources said
DEG prices meanwhile softened to Eur1,095/mt FCA as LyondellBasell’s Bayport, Texas, ethylene oxide unit was
offers were seen softer amid weaker buy interest. Offers expected to return to operations during the first week of
were seen below Eur1,100/mt FCA. The double NWE MEG October. Earlier this month, the company extended its EO
contract settlement was reported done Friday, with the force majeure event and MEG allocations due to ongoing
August contract fully settled at Eur943/mt ($1,201/mt) FD production issues. Sources also said MEGlobal’s Prentiss
NWE, while an initial September was reported settled at 1 unit in Alberta had returned to operation. Company
Eur920/mt ($1,172/mt), consumer Indorama confirmed confirmation was not available Friday.
Friday. The August settlement was a rollover. Indorama
confirmed settling both the August and the initial Asia
September settlements with Ineos. Ineos was not available Asian monoethylene glycol prices were stable to slightly
to confirm. The initial August CP was settled between Shell weaker this week, slipping by $1/mt week on week to $908/
and antifreeze coolants producer Arteco. A second producer mt CFR China and $911/mt CFR Southeast Asia on Friday.
said that although it would find an August contract at But the fall was limited due to short-covering by traders.
Eur943 acceptable, “the Eur920 is too low.” Upstream, the H1 October cargoes were trading at around $883/mt-$900/
August ethylene CP was Eur15 lower settling at Eur1,205/ mt earlier this week, before finishing the week higher at
mt FD NWE, while the September CP settled at Eur1,150/ $905/mt CFR China. H2 October cargoes were trading at
mt, down Eur50/mt. An initial ethylene October CP was around $887/mt-905/mt, before finishing the week higher
settled at Eur1,150/mt FD ($1,463) NWE, a rollover on at $910/mt CFR China on Friday. “Prices could have been
the September, sources said. The settlement was between substantially lower, if traders had not covered their short

positions, hence a floor was placed on the low end”, a against no offers or trades. The assessment is the highest since
trader said. Additionally, the ongoing decline MEG futures June 2, 2011’s assessment of 76 cents/lb delivered, according
dampened the physical MEG market. September futures to Platts data. Polymer grade material jumped to a 19-month
on the Huaxi Commodity Exchange closed at Yuan 6,820/ high, assessed at 74.5-75 cents/lb delivered, as October
mt on Monday, with the settlement falling to Yuan 6,766/ PGP was heard bid at 70 cents/lb MtB-pipe and offered at
mt by Friday. Chinese domestic prices fell by Yuan 80/mt 77 cents/lb MtB-pipe. After Platts Market on Close process
to be assessed at Yuan 6,570/mt Friday, equivalent to $865/ was completed, one October deal was heard at 77 cents/
mt on an import parity basis. Meanwhile MEG inventory in lb MtB-pipe. The deal was not included into the assessment
eastern China declined to 862,000 mt Friday, from 882,000 calculation due to its timing. One trading source said that
mt a week ago. In contract news, Shell has nominated its the deal was concluded above the current market level. Prior
October ACP at $1,100/mt CFR Asian main ports, down to the Friday deal at 77 cents/lb MtB-pipe for October, PGP
$60/mt from its September nomination. was heard traded on Monday and Tuesday, each time at 74.5
cents/lb MtB-pipe for September deliveries. No fresh chemical
grade deals, offers or bids were heard throughout the week.
Propylene The assessment spiked 6.5 cents/lb to be assessed at 73.75-
74.25 cents/lb delivered, splitting the difference between RGP
Europe and PGP assessments. In inventories, stocks of propylene for
The Northwest European October contract price for non-fuel use marked their seventh-consecutive weekly decline,
propylene fully settled at Eur1,105/mt ($1,410/mt) FD dropping 171,000 barrels to 3.122 million barrels in the week
NWE Thursday, a rollover from the September contract ended September 19, US Energy Information Administration
price, sources said. The initial settlement was between data showed Wednesday. In contracts, Shell Chemicals
Oxea as a buyer with BP Refining and Petrochemicals nominated its October US CGP contract price at 74 cents/
and Dow Chemical as sellers, the buyer said. BPRP lb, a 3-cent increase from October, sources said Friday. One
did not confirm. Dow confirmed. This was followed trading source cited a letter from the company stating that
by DSM as buyer and Sabic as seller. DSM confirmed, “effective October 1, 2014, Shell Chemical LP will increase
while Sabic wasn’t immediately available for comment. the price of chemical grade propylene by 3 cents to 74 cpp.”
European polymer grade propylene spot prices fell this The nomination followed ExxonMobil Chemical’s October
week by Eur6/mt, closing at Eur1,044/mt FD NWE, as propylene nomination which called for a 5-cent increase at
participants delayed trading activity amid bearish October 77.5 cents/lb and 76 cents/lb for PGP and CGP, respectively,
expectations. While demand was said to be weak, the multiple sources said Wednesday.
market was relatively balanced as supply was also reduced
following a number of maintenances, one producer said. Latin America
BASF began a turnaround at its No.1 220,000 mt/year Propylene trading remained thin this week, as no spot
Ludwigshafen cracker in Germany September 11 which exports from the region were heard, and no material was
is expected to last until mid-October, BASF said. Petkim unloaded at Mexico’s Altamira port this week, port records
started a 105-day maintenance period July 21 to upgrade showed. Pemex Petroquimica’s September prices were
cracker capacity by 13% to 585,000 mt/year. The OMV previously announced at $1,349/mt for chemical-grade
steam cracker at Burghausen has a capacity of 450,000 mt/ propylene and $1,593/mt for polymer-grade propylene for
year and will undergo maintenance from this weekend the month, a source familiar with company pricing said.
through to mid-November, a company spokeswoman All Pemex petrochemical and refinery plants were heard
said. Two PGP trades were heard done this week. One for running at capacity, a source with knowledge of company
500 mt, FD NWE, September delivery priced at MCP -7%. operations said. Participants with an eye on the international
The buyer confirmed. The second deal was for 1,900 mt, markets saw European polymer-grade propylene spot prices
CIF NWE, at October MCP -7%. The buyer confirmed. fall this week by Eur6/mt, closing at Eur1,044/mt FD NWE,
Meanwhile downstream, the European polypropylene as participants delayed trading activity amid bearish October
market stabilized as hesitant participants awaited the expectations. In the US, spot RGP rose 8 cents/lb ($176/mt)
propylene contract price settlement. Spot and contract to 73.50 cents/lb delivered, levels not seen since February
prices moved sideways this week at Eur1,250/mt FD NWE 2013, while spot PGP rose 4.25 cents/lb week on week to
and Eur1,422.50/mt FD NWE respectively. Both are at lows 74.75 cents/lb for October delivery. A source with a Mexican
not seen since the end of February. polypropylene producer said North American PGP contracts
could rise 4-5 cents/lb for October, which would likely lead
United States to a rise in PP in that market.
US spot refinery-grade propylene jumped 8 cents week on
week, assessed Friday at 73.25-73.75 cents/lb delivered, Asia
following talk of production disruptions, tight supply and Asian propylene prices were $5-10/mt lower week on
strong gasoline pool demand, sources said. In spot markets week, as demand softened ahead of the upcoming Chinese
Friday, October bids were heard at 72-73 cents/lb MtB-pipe, Golden Week holiday in China next week and expectations

of more supply. The CFR China marker was assessed at buyer Solvay said he settled with two producers, also
$1,345/mt, $10/mt lower week on week and flat day on without naming the counterparties. The expectations for the
day. In eastern China, demand has softened ahead of settlement have been mostly bearish following the recent
the long holiday. There were no deals heard done Friday, slump in feedstock naphtha and lengthening butadiene
but notional levels were heard at $1,340-1,345/mt CFR supplies in Europe. Naphtha closed Friday at $819.50/mt
East China. Also, buyers held back amid uncertainties CIF NWE: when the butadiene contract price settled for
and expectations of more supplies coming on stream September at Eur955/mt FD NWE on August 28, naphtha
next month. “Haiyue is pressured to run in higher ratios was trading at $868.25/mt CIF NWE. In the butadiene spot
because their raw material propane will arrive soon. They market, the collapse in Asian butadiene and natural rubber
have to reduce their [propane] tank capacity,” a source prices spooked the butadiene market. FOB NWE prices were
said, referring to Haiyue’s 600,000 mt/year propane assessed at $1,100/mt, a year low. Prices were down $50/mt
dehydrogenation plant in China’s northeastern Zhejiang on the week. FD NWE prices were assessed at Eur865-868/
province. Meanwhile, a company source from Sanyuan mt FD NWE. “FD NWE prices could be anywhere at Eur800/
Petrochemicals said Friday that its 450,000 mt/year PDH mt FD NWE or Eur850/mt FD NWE, no one is trading,”
plant is still “trying to improve purity level and they are one trader said. The CFR China butadiene marker was
still targeting end September” to achieve commercial assessed down $85/mt from the previous week at $1,440/
production of polymer grade propylene. “I can say that mt Friday. The downward spiral came from falling natural
production is not stable and the purity level can vary,” rubber prices which alarmed synthetic rubber buyers, as they
the source added. Last week, another source from Sanyuan are substitutes. The Asian styrene-butadiene-rubber market
said that company’s PDH plant had achieved chemical was assessed down $40/mt week on week at $1,940/mt
grade propylene with a 95% purity level and that the Friday, a low since early August. In production news, OMV’s
plant was running at 60% of capacity. In northern China, 450,000 mt/year steam cracker in Burghausen, Germany,
particularly in Tianjin, there was some buying interest amid will undergo a turnaround beginning this weekend till
market talk that Tianjin Bohai’s 600,000 mt/year propane mid-November, a company spokeswoman from Borealis
dehydrogenation plant was shut Wednesday due to a glitch. said. Eni will permanently close its 490,000 mt/year steam
However, Tianjin Bohai could not be reached for comment cracker at Porto Marghera in Northern Italy and mothball
and further details are not known. A Chinese end-user said the aromatics plant there, it said in a statement Tuesday. The
that deals were heard concluded at $1,350-1,355/mt CFR cracker was temporarily idled in January this year on poor
North China however this could not be confirmed. An offer economic conditions. In the crude C4 market, the factor was
was heard at $1,365/mt, while a bid was heard at $1,350/mt marginally higher this week at 0.98 on the back of naphtha
CFR North China. JX was heard to have sold two cargoes, outright prices extending their fall, sources said. Outright
each 1,500 mt, on September 25 at $1,352/mt CFR China, C4 was assessed at $801.4/mt, down $5.48/mt on the week.
for H2 October arrival. However, further details are not Naphtha closed Friday at $817.75/mt CIF NWE, a more than
known. Meanwhile, the FOB Korea marker was assessed $5/ 15-month low. Sources said that C4 supply was adequate,
mt lower week on week at $1,295/mt. Cargoes for loading pegging the factor at just below 1. One producer reported
in October from South Korea were still limited, according to a 2,000 mt deal for C4 at naphtha flat plus a small quality
sources. Only Samsung Total was heard offering at $1,300/ premium due to above-average butadiene content. In the
mt FOB Korea. A deal was heard concluded this week at the raffinate-1 market, the factor to naphtha was assessed stable
same level, however this could not be confirmed. Taiwan’s on the week at 1.19. The drop in naphtha, however, pulled
Formosa was heard to have sold cargoes at $1,305/mt FOB outright prices down to $973/mt, down $27/mt on the week.
Mailiao. One source said Formosa sold a cargo of at least Derivative MTBE prices were also down on the week, adding
1,500 mt to a a trader last week or early this week. A second pressure to outright Raffinate prices. MTBE was assessed at
source said the company sold a 2,500 mt cargo Thursday. $1,089/mt FOB ARA Friday, down 2.5% on the week.
Market participants said that Formosa has been looking to
sell about 10,000 mt of propylene since last week. Formosa United States
could not be reached for comment. Meanwhile, Chinese Nominations for the October US butadiene contract
buyers were heard bidding at $1,300/mt FOB Mailiao. price were heard at a rollover to down 2 cents/lb this
week, but the contract remained unsettled by time of
publication, sources said. ExxonMobil reduced by 2 cents/
Butadiene lb ($44/mt) its initial October US butadiene contract
nomination to 60 cents/lb ($1,323/mt), sources said Friday.
Europe ExxonMobil could not be reached for confirmation. Shell
The Northwest European October contract price for Chemicals and LyondellBasell each nominated October
butadiene was settled Friday at Eur930/mt FD NWE, US butadiene contracts at a rollover from September at
down Eur25 on the month, sources said. Sabic and Total 56 cents/lb ($1,235/mt), while TPC Group nominated its
Petrochemicals said that they settled with three customers October US butadiene contract down 2 cents/lb ($44/mt)
each without naming the counterparties. A source from from September at 54 cents/lb ($1,190/mt), sources said

Wednesday. Producer confirmation on the nominations mt/year. In international markets, the US butadiene
could not be obtained. The nominations exclude any spot assessment fell 2 cents/lb ($44/mt) this week to 53
discounts or adders that producers might add, sources cents/lb amid weak buying interest and ample supply
said. Despite having all nominations from producers, while the European FOB NWE prices dropped $50/mt on
sources said the contract continued to be unsettled and the week assessed $1,100/mt, a year low.
there could be further movements. The nominations were
within expectations for October contracts that had ranged Asia
from unchanged from September to down 2-3 cents. The The Asian butadiene market dived $80-85/mt week on
September US butadiene contract settled 4 cents/lb lower week Friday amid thin trading ahead of the National
than August at a 56-62 cents/lb split settlement, with Day holidays in China next week. The CFR China
LyondellBasell, Shell Chemicals and TPC Group at 56 butadiene marker was assessed down $85/mt from
cents/lb and ExxonMobil at 62 cents/lb, sources said. The the previous week at $1,440/mt Friday, while the CFR
settlements excluded any discounts or adders, sources said. Taiwan marker was assessed down $85/mt at $1,450/
Producer confirmation on the September settlement was mt. Some deals were heard done at $1,450/mt CFR
unavailable. In the spot market, the assessment dropped China and $1,460/mt CFR Taiwan, with offers falling
2 cents on the week to 53 cents/lb CIF USG on continued to $1,450/mt CFR China Friday, while bids were heard
weak demand as ample supply. The assessment was at its at the low-$1,400s/mt CFR China. Trading sources said
lowest since November 27, 2013, when it was at the same butadiene buying appetite from South Korea — which
level, according to Platts data. No import deals, bids or has been pushing up the Asian butadiene market
offers were heard this week as the arbitrage from Europe recently — completely faded this week as end-users
and Asia remained closed, sources said. The import market there had purchased their requirements for October. “So
was notionally talked in the low- to mid-50s cents/lb, now, sellers need to find buyers in China or Taiwan,”
but sources continued to describe the market as tough to said a trading source. Demand for spot butadiene
peg due to a lack of a spot market. In order to work the cargoes in China and Taiwan was not strong due to
arbitrage from Europe, with European butadiene assessed sufficient local supply, said sources. On Friday, the
Friday $50/mt lower on the week at $1,100/mt FOB local butadiene price in China sank Yuan 400/mt day
Rotterdam and freight estimated at $220/mt, US prices on day to be assessed at Yuan 10,500/mt, or $1,408/
would need to be at least at 60 cents/lb CIF USG, according mt on an import parity basis. The FOB Korea butadiene
to Platts data. October US domestic offers were heard at 54 price also dropped $80/mt from the previous week to
cents/lb delivered pipe and FOB barge basis Friday, with be assessed at $1,405/mt Friday. Further pressure on
that market also talked in the low- to mid-50s cents/lb. the Asian butadiene market came from the rapidly
Asian prices also dropped on the week, falling $80-$85/ falling downstream synthetic rubber market. The Asian
mt to assessments at $1,405/mt FOB Korea and $1,440/mt styrene-butadiene-rubber market was assessed down
CFR China Friday. There had been discussion of a possible $40/mt week on week at $1,940/mt Friday. Looking
export arbitrage to Asia in August and the first half of forward, some sources said that the Asian butadiene
September, but sources said nothing was booked as freight market would rebound after discussions for November-
to Asia was $400-$500/mt. Sources said the US market arrival cargoes begin. “South Korean end-users would
remained quiet as tanks are full and downstream demand in return to the market for November business,” said a
the styrene-butadiene rubber market remained slow. Sources trading source. In plant news, South Korea’s Yeochun
said the market would likely remain quiet in October. Naphtha Cracking Center has further reduced the
operating rate at its 220,000 mt/year butadiene plant
Latin America in Yeosu to 80-85% of capacity since Wednesday due
Butadiene trading into Latin America was absent this to a mechanical problem at the unit. The company had
week as no trades, bids or deals were heard and no cargo already reduced the run rate at the butadiene plant to
was unloaded at Mexico’s Altamira port. Mexico is the 90-95% earlier this week, from 100% previously, due to
largest importer of the olefin from Brazil while Braskem an annual one-month turnaround at its No. 3 naphtha-
is the main producer and exporter in the region. fed steam cracker at the same site. The further reduction
Braskem’s Sao Paulo olefins plant remains in turnaround in the run rate will last for about a week, and then the
and scheduled for restart October 10, per a company company will revert to operating the butadiene plant at
source. The cracker has a butadiene capacity of 90,000 90-95% of capacity till the steam cracker is restarted.

Polymer Feedstocks: Aromatics

Paraxylene Polymer Feedstocks – Aromatics
Europe Weekly Average Spot*

Styrene FOB Korea ($/mt) 1484.40-1485.40
The European paraxylene 5-30 days forward benchmark Styrene FOB ARA ($/mt) 1518.20-1519.20
firmed $5/mt day on day to be assessed at $1,185/mt Styrene FOB USG (cts/lb) 67.00-67.50
FOB ARA Friday in tandem with rising prices in the US,
Paraxylene FOB Korea ($/mt) 1229.20-1230.20
supportive economic indicators in Europe and a strong
Paraxylene FOB Rdam ($/mt) 1170.00-1172.00
dollar. PX in Europe registered a similar rise on a week- Paraxylene FOB USG ($/mt) 1180.00-1190.00
on-week basis. In the US overnight, the product rose $5/
Monthly Contract Price
mt day on day to be assessed Wednesday at $1,195/mt
Styrene Barge FOB ARA CP (Eur/mt) (Sep) 1390.00
FOB US Gulf Coast on an uptick in demand from Latin Styrene Truck FCA Rdam CP (Eur/mt) (Sep) 1398.00
America and on anticipation of an improvement in demand Styrene FOB USG (cts/lb) (Sep) 70.00-71.00
from downstream purified terephthalic acid manufacturers
within the country. In Asia, PX slipped $1/mt day on day Paraxylene CFR Asia Average (Oct) NA
Paraxylene FD NWE (Eur/mt) (Sep) 985.00
to $1,244/mt FOB Korea halting a three-day rally. This was Paraxylene FOB USG (¢/lb) (Sep) 64.50-64.50(Q3)#
because a tank caught fire at the shutdown 600,000 mt/
* Average prices for week ending previous Friday. # US PX CP are typically settled retroactively,
year PTA plant in Ningbo, eastern China, owned by Japan’s prices refer to most recent settlement. To convert Cts/lb to $/mt, multiply by 22.046.
Mitsubishi Chemical. The EU market for new commercial
vehicles expanded for the 12th consecutive month in
August, with registrations rising 6.1.% year-on-year to US Styrenics Prices
104,686 units, ACEA, the European auto manufacturers’ ($/mt)
association, said Friday. This boosted sentiments for 140
downstream PTA markets in the continent and therefore US Domestic Dlvd GPPS Styrene Spot USG
supported PX demand. Feedstock isomer-mixed xylene,

120
which slipped $10/mt week on week in Europe to $1,030/
mt FOB ARA, weighed in on PX prices.
100
United States
US spot paraxylene prices rose $20/mt on the week to
$1,195/mt FOB USG tracking Asia higher, sources said. 80
Asian PX pricing gained $27.50/mt on an FOB Korea basis
week on week to a Friday assessment at $1,244/mt FOB 60
Korea and $1,265/mt CFR Taiwan/China because of stronger 26-Feb 26-Mar 23-Apr 21-May 18-Jun 24-Sep
downstream demand, sources said. The US September PX
contract price settled at 64.50 cents/lb ($1,422/mt), sources
Notes: All aromatics prices reflect assessments at close of previous Friday.
said Friday, a decline of 4 cents/lb compared with August’s
settlement. BP shut one of the two purified terephthalic
acid units at its 2.86 billion lbs/year Cooper River facility on week. During the Platts Market on Close assessment
in South Carolina following a fire in early August. Sources process, a bid for H2 October was heard at $1,272/mt
have said the unit will likely be restarted in late October or CFR Taiwan/Ningbo/Dalian for Asia-origin product,
early November, but would not be at full run rates. Asian while an offer for the same laycan was heard at $1,268/
demand for US PX was weak and arbitrage opportunities mt CFR Taiwan for open-origin product. Meanwhile, a
were limited on paper, however, as much as 20,000 mt of bid for H2 October/November was heard at $12/mt CFR
PX was shipped to Brazil, sources said. The MX-PX spread Taiwan/Ningbo/Dalian, while an offer for H2 October/
was around $108/mt to end the week, based on Platts data. H1 November was heard at $15/mt CFR Ningbo/
Dalian. Offers for November were heard at $1,270/mt
Asia CFR Taiwan/Ningbo/Dalian for Asia-origin product.
Asian paraxylene slipped $1/mt day on day to $1,244/ In other market news, a tank caught fire at the shut
mt FOB Korea and $1,265/mt CFR Taiwan/China Friday, 600,000 mt/year purified terephthalic acid plant in
amid relatively stable discussion levels. This halted Ningbo, eastern China, owned by Japan’s Mitsubishi
the uptrend seen in the last three consecutive days, on Chemical, a source said Friday. The plant in Zhejiang
the back of improving PX demand from downstream province has been shut for a 35-day turnaround since
purified terephthalic acid market in China. Even so, early September. It was expected to restart October 7.
the Taiwan/China PX marker was up $27.50/mt week The company said Friday that the restart schedule was

uncertain. Meanwhile, South Korea’s S-Oil nominated its downstream demand held back prices in the ARA region,
paraxylene Asian Contract Price for October at $1,280/ according to sources. “We have an oversupply on styrene
mt CFR, sources close to the negotiations said Friday. so prices won’t jump,” said a source. “Everyone has too
This was down $30/mt from its final September ACP much in their tanks. [For prices to move significantly]
nomination level of $1,310/mt CFR, which was revised we’d need to have an uptick in demand across EPS, PS
down from an initial $1,390/mt CFR. Meanwhile, and ABS — but all those guys are long at the moment.”
ExxonMobil also nominated its October PX ACP at Bid-offer indications in the market were heard in the
$1,280/mt CFR, down $20/mt from its final September range of $1,500-1,525/mt FOB ARA for October-loading
ACP nomination level of $1,300/mt. There are four PX barges. November-loading barges were heard in the range
ACP sellers in Asia — ExxonMobil, Japan’s Idemitsu of $1,510-1,515/mt FOB ARA until the afternoon when
Kosan and JX Nippon Oil and Energy, and South Korea’s offers disappeared. Globally the picture was similar as
S-Oil. JX nominated its October PX ACP at $1,270/mt styrene and benzene prices rebuffed increases from the
CFR, sources close to the negotiations said Wednesday. previous day. Asian styrene monomer fell $5/mt day on
This was $40/mt lower than its final September ACP day Friday to $1,509.50/mt CFR China, down $26.50/
nomination of $1,310/mt CFR. Idemitsu nominated mt on the week on reports China will accept slower
its October PX ACP at $1,280/mt CFR. For September economic growth and not announce any substantial
negotiations, no major settlement was reached. The stimulus package this year. Overnight Thursday, US Gulf
last agreed ACP settlement was for January at $1,415/ spot styrene was stable at 67.25 cents/lb ($1,482/mt) FOB
mt CFR. Asian isomer-grade mixed xylene was assessed USG as feedstock benzene was steady.
unchanged day on day at $1,044/mt FOB Korea and
$1,064/mt CFR Taiwan Friday amid thin trading. The United States
CFR Southeast marker was assessed up $15/mt week US spot styrene fell 1 cent on the week, assessed Friday
on week at $1,065/mt Friday, amid tight availability at 67 cents/lb FOB USG on lower benzene and ethylene
due to a plant shudown since May. Indonesia’s Trans feedstocks prices. The assessment was at its lowest since
Pacific Petrochemical Indotama has kept its East Java August 22, 2012, when it was at the same level, according
aromatics plant shut since May due to poor paraxylene to Platts data. Bids were heard at 65 cents/lb FOB USG,
margins, market sources said Friday. The TPPI complex while notional offers were heard as low as 68 cents/lb FOB
has capacity to produce 1.065 million mt/year of light USG. A source said the market was looking at October to
naphtha, 1.624 million mt/year of reformate, diesel try to move product. Market participants were waiting on
and kerosene, 550,000 mt/year of PX, 350,000 mt/year the October US benzene contract price to settle, sources
benzene and 100,000 mt/year of OX. There were no said. The October benzene contract is expected to fall 44-55
bids or offers Friday, either onscreen or offscreen during cents from September to settle in a range from 415-425
the Platts Market on Close assessment process. There cents/gal, sources said. If the decrease takes place, it could
was talk that a deal was concluded at $1,050/mt FOB drop variable costs as low as 63 cents/lb, according to Platts
Korea for an H2 October cargo, but this was denied by data. The arbitrage to Europe and Asia was closed on paper,
the seller. The market was still focused on preparing for according to Platts data Friday. To work product to Asia,
2015 contracts and determining what were the price US prices would need to be closer to 64 cents/lb FOB USG,
drivers. A bearish toluene market was also impacting sources said. The arbitrage to Europe appeared possible,
iso-MX, with sources expecting it to continue until with the netback from Europe at just less than 67 cents/lb
next year. China’s demand for toluene has been waning FOB USG, with freight at $40/mt, according to Platts data,
since the end of the first quarter of 2014, amid an array but when factoring in profit, insurance and other items, US
of challenging market conditions including cheaper product would likely need to be closer to 66 cents/lb FOB,
alternatives such as mixed aromatics, limited availability sources said. Styrene supply has been described as becoming
of credit and slowdown in the country’s GDP growth. tighter in the market, as most producers have been running
reduced due to poor margins caused by the higher feedstock
ethylene prices, and as feedstock benzene had been higher
Styrene in July and August, sources said. In production, Westlake’s
Lake Charles, Louisiana, styrene plant was taken down in
Europe mid-August and remained down this week, sources said.
Northwest European styrene monomer spot prices Producer confirmation on the shutdown was unavailable.
dropped $10/mt to be assessed at $1,515/mt Friday, Styrolution will take down its 1.7 billion lbs/year Bayport,
as the European market remained oversupplied, and Texas, styrene plant at the end of September for planned
feedstock benzene prices retreated south. Benzene moved maintenance and expected to be restarted in early
down $11.50/mt to be assessed at $1,328 CIF ARA. Week November, a company source said. Downstream demand in
on week, styrene and toluene moved in tandem — polystyrene and the acrylonitrile-butadiene-styrene markets
styrene finished up $5/mt, benzene was up $7.50/mt on were both steady, sources said. In feedstocks, spot benzene
the week Friday. Oversupply and a broad-based lack of was assessed at 423 cents/gal FOB USG Friday, while spot

ethylene was assessed 5.50 cents lower on the week at 70.75 remain squeezed, a source close to the company said late
cents/lb FD USG Friday. Variable costs were estimated as Wednesday. It was unclear when the plant will restart,
low as 63.50 cents/lb using minimum feedstock costs and with the source saying the company “will evaluate the
as high as 74.25 cents/lb using maximum feedstock costs, market day by day.” The plant was idled in late July due
according to Platts data Friday. to low margins and weak demand after running for only
three months. The bid-offer range for November loading
Asia Asian-origin cargoes was heard around $1,500-1,510/
Asian styrene monomer fell $26.50/mt week on week to mt CFR China early Friday. October was bid at $1,512/
be assessed at $1,482.50/mt FOB Korea and $1,509.50/ mt and December at $1,480/mt CFR China, with sources
mt CFR China Friday, and was down $5/mt day on day, saying market prices were down. However, domestic
ahead of a week-long holiday in China starting next prices in the east of China appeared to be stable from the
Wednesday. Prices fell early in the week on reports China day before at Yuan 11,075/mt, or roughly $1,509/mt on
will accept slower economic growth and not announce an import parity basis. In related news, China’s imports
any substantial stimulus package this year. However, of SM fell to the lowest level in 16 months at 260,691
some support emerged later as the total inventory of SM mt in August as demand weakened, latest data released
in eastern China was reported at 175,000-180,000 mt, Tuesday by Chinese customs showed. This was down 25%
down from around 190,000 mt the week before. The from July and down 26.8% from a year earlier. The last
inventory held by traders was estimated to have fallen time imports were lower was in April 2013 at 238,333 mt.
to around 110,000 mt from 120,000 mt the week before. Imports from major supplier South Korea tumbled 28.7%
In addition, producers keep limiting supply, with South month on month to 113,539 mt in August, likely as a
Korea’s SK Global Chemical not planning to restart its result of SK Global Chemical shutting one of its plants in
350,000 mt/year SM plant at Ulsan in October as margins late July due to weak margins.

Polymer Feedstocks: Intermediates

Purified Terephthalic Acid Polymer Feedstocks – Intermediates
Europe Weekly Spot

PTA CFR China ($/mt)* 889.0-891.0
The European contract price for September was PTA CFR SE Asia ($/mt) 920.0-922.0
assessed at Eur834/mt ($1,068/mt) FD NWE following PTA CFR South Asia ($/mt) 930.0-932.0
a September contract settlement for PX at Eur985/
EDC CFR FE Asia ($/mt) 431-433
mt ($1,261/mt) FOB ARA. PTA manufacturers who ran
EDC CFR SE Asia ($/mt) 431-433
their plant at an average and low operation rate of 70% EDC FOB NWE ($/mt) 370-380
reported lower demand from PET manufacturers. EDC FOB USG ($/mt) 360-370
United States VCM CFR FE Asia ($/mt) 889-891

VCM CFR SE Asia ($/mt) 949-951
Market sources said the formula-derived PTA price for VCM FOB NWE ($/mt) 740-750
September was set at 56.47 cents/lb, a decrease of 2.68 VCM FOB USG ($/mt) 700-710
cents/lb from August, market sources said this week.
Acrylonitrile CFR FE Asia ($/mt) 2009-2011**
The prices was set based on 64.5 cents/lb settlements
Acrylonitrile CFR SE Asia ($/mt) 2004-2006**
of the US paraxylene contract, the key variable used to Acrylonitrile CFR South Asia ($/mt) 1924-1926**
set the PTA price. A decrease was anticipated with spot Acrylonitrile FOB USG ($/mt) 1915-1935**
paraxylene prices falling throughout the month as the Acrylonitrile CIF Mediterannean ($/mt) 1948-1952**
US market felt the impact of weaker global demand. Monthly Contract Price
Downstream, US polyethylene terephthalate prices PTA FD NWE (Eur/mt) (Sep ) 829-839
continued to be talked lower this week as lower-priced PTA Delivered USG (¢/lb)(September) 56.47-56.47
feedstocks and product from other regions were pushing VCM Delivered USG (¢/lb)(Sep ) 54.00-54.50
US domestic prices reflect transaction pricing for medium-sized customers.
domestic and import markets lower. September US PET * Average prices for week ending previous Friday.
contracts were assessed at $1,687-$1,709/mt (76.5-77.5 ** ACN prices reflect assessments at close of Tuesday
cents/lb) as lower feedstock pricing and weaker global

demand was heard putting pressure on US markets. Platts Asian PTA versus Paraxylene ($/mt)
Multiple sources pegged contracts in the 76-78 cents/
lb range for September. In production news, a market ($/mt)
1600
source said the soon-to-be repaired line at BP’s Cooper PTA CFR China PX CFR Taiwan
River, South Carolina, facility PTA facility would likely
run at about 50% capacity initially, and could be back at 1400
full run rates in February. BP is set to restart the line —
which was damaged by a fire in early August — in late
1200
October or early November, a source with knowledge
of company operations said. The Cooper River facility,
which has two units, has a total PTA capacity of 2.86 1000
billion lb/year.
Asia 800
Asian purified terephthalic acid prices slipped slightly 09-May 06-Jun 04-Jul 01-Aug 29-Aug 26-Sep
by $4/mt week on week to be assessed at $896/mt
CFR China Friday. Sentiments remained bearish amid Notes: All intermediates prices reflect assessments at close of Thursday,
with the exception of PTA CFR China.
a weak polyester market. PTA traded levels were seen
slightly lower at $896/mt CFR China Friday — but it
was a slight improvement from earlier in the week Friday, at Yuan 6,270/mt from the previous day’s
when trades were seen done at $885/mt CFR China. Yuan 6,236/mt. The CFR Southeast Asia PTA and CFR
On Friday, deals were heard done at $890/mt and India markers were also assessed down $4/mt week on
$896/mt CFR China, for 1,000-mt Asian-origin cargoes week at $921/mt and $931/mt, respectively, Friday. In
with 90-day Letters of Credit and loading in first- contract news, China’s Sinopec settled its September
half October. Domestic China PTA prices were stable, Contract Price for PTA at Yuan 6,900/mt, down Yuan
assessed unchanged from last week, at Yuan 6,600/ 775/mt from its August settlement, a market source
mt, which is equivalent to $865/mt on an import said Friday. Additionally, Yisheng Petrochemical
parity basis. January PTA futures on the Zhengzhou and Xianglu Petrochemical have also settled their
Commodity Exchange traded marginally higher on September CPs at Yuan 6,900/mt.

Acrylonitrile fall further. The market was watching the propylene market,
waiting for an October contract settlement. Nominations
Europe for the October chemical-grade propylene contract price
European acrylonitrile prices were assessed at $1,950/mt have been heard as low as 3 cents/lb and as high as 8 cents/
CIF Med, down $25/mt compared to last week’s level on lb, sources said. The September chemical-grade propylene
weaker spot buying interest as Ineos confirmed that it was contract settled at 71 cents/lb. Production costs based on
restarting one of its Cologne lines. It will begin the start- raw materials were estimated as high as $2,000/mt, but
up process at the 210,000 mt/year line over the weekend those costs could rise in October to possibly as high as
after a five-week maintenance, a company source said $2,100-$2,200/mt depending on the increases seen in the
Tuesday. The source said the procedure was likely to end propylene contract, according to Platts data.
by Sunday. “The maintenance ends at the end of the week
and operations start over the weekend. It should take a Asia
couple of days (for the restart process to complete),” the Asian acrylonitrile prices fell this week amid lower propylene
source said. The line is the larger of the two that it operates feedstock costs and competitive deepsea cargo offers. The
at the site. The smaller 100,000 mt/year line has been in CFR Far East Asia marker was assessed down $25/mt week
operation throughout. The news comes as buying interest on week at $2,010/mt. Offers were heard between $2,020/
is cooling, with consumers looking for lower prices as mt and $2,050/mt CFR Far East Asia, with one producer
availability was reported rising. NWE ACN spot prices hit saying its sell target was between $2,000/mt and $2,050/mt.
a 27-month high on August 30 to be assessed at $2,060/mt Some deepsea cargoes were being offered at $1,950-2,000/
CIF Med, according to Platts data. The price spike coincided mt CFR Far East Asia, although they were expected to arrive
with the start of the Ineos turnaround. Producers however only end October or early November. Platts’ methodology
are unwilling to cut prices, citing higher composite costs as assesses cargoes delivered up to 30 days forward from date of
ammonia feedstock costs rose in the month of September, publication. One Chinese end-user estimated October arrival
while October propylene costs rolled over. “Ammonia is up cargoes at “about $2,010/mt or lower.” For cargoes arriving
Eur65/mt [$82/mt] this month versus August. It means that in November, the same source said its buy indication was
[composite] costs will be about Eur33/mt...for the nitrile,” a below $1,950/mt CFR Far East Asia. A South Korean producer
producer said. Russia’s Lukoil is also due to start a four-week said it had sold a cargo last week to an acrylamide producer
scheduled maintenance at its 150,000 mt/year ACN plant in at $2,030/mt CFR Far East Asia, however the volume was
Saratov, southern Russia, next week. Although some sources relatively small at 300 mt, and outside Platts’ methodology,
said that buyers were willing to pay as little as $1,800/mt which assesses 1,000-2,000 mt cargoes on a CFR Far East Asia
CIF NWE, such levels could not be fully corroborated in basis. Feedstock propylene fell $10/mt week on week to be
the market. Although producers said that with ammonia assessed at $1,345/mt CFR China as supplies from propylene
prices having risen Eur65/mt and propylene a rollover, total dehydrogenation plants increased supply in the domestic
composite costs amounted to Eur32.50/mt, which meant China market. The CFR South Asia ACN marker fell a sharp
that with a total cost price of $1,926/mt CIF, it implied that $110/mt week on week to be assessed at $1,925/mt. Offers
they could not sell below $2,000/mt without making a loss. for deepsea cargoes arriving late October or early November
Although it disagreed with prices as low as $1,800/mt CIF were heard between $1,950/mt and $2,000/mt CFR South
NWE, prices at $2,000/mt were currently not repeatable Asia. Deals were heard done in the range of $1,920-1,925/
in today’s market. A source said that material would mt CFR India, with one deal heard concluded at $1,875/mt,
likely trade within the $1,900-1,950/mt CIF NWE level. although it could not be verified. A South Asian producer
Additional freight costs implied a higher price for delivered put the market price in the range of $1,900-1,930/mt CFR
material into the Mediterranean hub. South Asia. “We are seeing one of the worst prices for ACN
right now,” he added. Asian ACN prices were expected to
United States soften further amid weakening downstream demand, market
The US acrylonitrile export assessment was stable on the sources said. “From October to December we expect demand
week at $1,925/mt FOB USG as the market was heard in to be lower from both acrylic fiber and ABS [acrylonitrile
a wide range. Spot pricing was talked from below $1,870/ butadiene styrene] producers,” a Chinese end-user said. “We
mt FOB USG as offers were heard at that level, to as high expect their operating rates to be lower [during that period].”
as $1,950-$1,980/mt FOB USG this week. Deals were heard
to be done as low as the high-$1,800s/mt FOB USG for
unknown volumes to as high as $1,970/mt FOB USG for Ethylene Dichloride / Vinyl Chloride Monomer
2,000 mt. Sources said many factors were playing a part in
the market as supply was expected to become tighter due Europe
to an anticipation that most producers will reduce rates EDC: The Northwest European EDC FOB spot price was
further because of higher feedstock propylene prices, which assessed flat this week, at $375/mt, amid no change in
might help ACN prices rebound. However, a trader source market fundamentals. No trades were heard this week in
said ACN demand was slow, which could cause pricing to what was felt to be a market of continued low demand

and supply, sources said. Force majeure continues at United States

Dutch chemical company AkzoNobel with the Botlek EDC: Export pricing held steady week on week, assessed
electrolysis plant in Rotterdam running at 40% capacity, Thursday at $360-$370/mt FOB USG, with limited activity
a company source said Wednesday. The FM began in the market due to high feedstock ethylene prices and
September 5 as a result of a labor dispute. The reduced weak demand in Asia for both US EDC and downstream
supply of feedstock chlorine from the plant is heard to polyvinyl chloride, sources said. Notional trading levels
have had little effect on the price of EDC in this captive were heard at $360-$370/mt FOB basis, with no trades,
market, sources said. One consumer of its own EDC bids or offers heard on the week. US EDC prices have been
production said: “We use everything we produce, we experiencing downward pressure from Asia and Europe, a
may sell if we don’t or buy if we are short but we have trading source said, following declining ethylene prices in
not had to trade any [EDC] for the last few months.” both regions. Another trading source said the recent quiet
Reduced demand in upstream PVC is heard to be further state of the market owes to a large spread between bids and
muting this quiet market. European FD PVC contract offers. EDC production at recent spot ethylene prices would
negotiations continued for September late into the not be economical and must be done at contract prices, a
month with sources reporting further settlements at tight third trading source said. Feedstock ethylene fell 5 cents/
margins due to low demand. European FD PVC contract lb over the week with September spot assessed Thursday
prices were assessed Wednesday at Eur820/mt, down at 70.5-71 cents/lb Mont Belvieu-Williams pipeline basis.
Eur30/mt on August. One producer said, “Demand [for LyondellBasell has started a 800 million lb/year expansion
PVC] is getting worse nearer the end of the month and of a 1.75 billion lb/year steam cracker in La Porte, Texas,
producers are not resisting price drops.” Reduced demand a company source said Wednesday. In Asian EDC, prices
in PVC was seen earlier this week on the expectation of remained flat week on week at $432/mt CFR Far East Asia
drops in feedstock ethylene. An initial ethylene October and $432/mt CFR Southeast Asia. VCM: Spot prices dropped
contract price was settled at Eur1,150/mt FD NWE $25/mt on the week to a Thursday assessment of $700-
Thursday, a rollover on the September contract despite a $710/mt FOB USG, pushed down by weaker downstream
fall in ethylene’s feedstock naphtha, sources said. VCM: polyvinyl chloride export prices. No trades, bids or offers
The European vinyl chloride monomer spot price was were heard for the week. A trading source said markets
assessed unchanged, at $745/mt FOB NWE, with no in Asia and Europe have applied downward pressure on
trades reported. “Producers have nothing to offer. Hence US prices and that the arbitrage window to Asia has now
the merchant market currently doesn’t exist,” a trade closed. US export PVC prices fell $25/mt on the week,
source said. Demand was not heard either in this captive assessed Wednesday at $900-910/mt FAS Houston, with
market, two trade sources said. a trading source expecting lower pricing in November. In
Global Production Update

Company Location Capacity* Timing Status

Formosa Point Comfort, Texas 264 LLDPE 17-Jul !SD after line separation
Dow Freeport, Texas 635 PE 12-Jul PE 4 line maintenance
Ineos Cologne 400 LDPE 15-Sep SD
SABIC Wilton 400 LDPE 20-Jul SU, FM remains
HIPP Pancevo 58 LDPE 1-Sep T/A 2 months
SIBUR Tomsk 250 LDPE 19-Jul T/A 3 weeks
Borealis Stenungsund 350 LDPE Sep-Oct T/A
SABIC Wilton 400 LDPE 8-Jul !Force majeure event
Versalis Gela 200 LDPE 2014 permanent shutdown
Exxon NDG, France 400 mLLDPE Sep T/A
Borealis Porvoo 120 LLDPE end Aug T/A
LBI Plock 320 HDPE Sep FM
LBI Plock 320 HDPE Sep T/A 4 weeks
Ineos Lavera 240 HDPE Sep T/A 2 weeks
Ineos Rosignano 200 HDPE Aug T/A 10 days
HIPP Pancevo 90 HDPE 1-Sep T/A 2 months
Borealis Burghausen 170 HDPE H2 2014 Permanent SD!
Formosa Mailiao 260 LLDPE Aug 24 to Sep 18 T/A
SEPC Jubail 400 LDPE Sep TA, 24 days
SEPC Jubail 400 HDPE Sep TA, 24 days
Petro Rabigh Rabigh 600 LLDPE Aug 21-22 RS
Petro Rabigh Rabigh 300 HDPE 15-Aug RS
Petro Rabigh Rabigh 600 LLDPE 9-Aug SD!
Petro Rabigh Rabigh 300 HDPE 9-Aug SD!
TA = scheduled turnaround; SD! = unplanned shutdown; SU = startup; DB = debottlenecking; OR = operating rate

Asia, PVC prices slid $20-25/mt at Wednesday’s assessment Subscriber notes (continued...)
with a market source expecting demand to stay weak
until November when end-users reach the end of their AAKQK00 PVC average export price Japan Jpy/kg Monthly
inventories. Asian VCM prices fell $8/mt week on week AAKQL00 PS average export price Japan Jpy/kg Monthly
to $890/mt CFR Far East Asia and $5/mt to $950/mt CFR AAKQM00 ABS average export price Japan Jpy/kg Monthly
Southeast Asia due to weak demand. AASEN00 Toluene average export price Japan Jpy/kg Monthly
Please send any comments and questions to
Asia [email protected] and [email protected].
EDC: Asian ethylene dichloride was assessed flat week Platts to discontinue Japan domestic polymers assessments
on week at $432/mt CFR Far East Asia and $432/ from Sep 30 Following a detailed review of the market, Platts
mt CFR Southeast Asia Thursday. US origin cargoes will discontinue its Japan domestic polymers assessments
for November arrival were heard offered to Far East from September 30, 2014. These assessments are
Asia below $450/mt CFR this week, against buying published on page PCA055 and found under the following
ideas below $400/mt CFR. Spot availability was heard codes in the Platts price database:
from the Middle East, although no firm offers were
Symbol Description
seen. Spot buyers were generally well covered by term
AALES00 LDPE Platts Domestic Japan Jpy/kg Monthly
contracts amid shrinking production downstream.
AALET00 LDPE MOF CIF Japan Jpy/kg Monthly
Buyers said some spot demand was to likely to emerge AALEU00 LLDPE Platts Domestic Japan Jpy/kg Monthly
from November, although inventories remained high. AALEX00 LLDPE MOF CIF Japan Jpy/kg Monthly
A Northeast Asian source expected EDC prices to AALEY00 HDPE Film Platts Domestic Japan Jpy/kg Monthly
soften further in November and December as feedstock AALEZ00 HDPE Film MOF CIF Japan Jpy/kg Monthly
ethylene plants resumed operations after scheduled AALFA00 PP Homo Platts Domestic Japan Jpy/kg Monthly
maintenance. VCM: Asian vinyl chloride monomer AALFB00 PP Homo MOF CIF Japan Jpy/kg Monthly
prices fell $8/mt week on week to be assessed at $890/ AALFC00 PP Copol Platts Domestic Japan Jpy/kg Monthly
mt CFR Far East Asia and fell $5/mt to $950/mt CFR AALFD00 PP Copol MOF CIF Japan Jpy/kg Monthly
Southeast Asia Thursday on weak demand. Offers were AALFE00 GPPS Platts Domestic Japan Jpy/kg Monthly
heard at $900-910/mt CFR Far East Asia against buying AALFF00 GPPS MOF CIF Japan Jpy/kg Monthly
ideas at $850/mt. Downstream October-loading PVC AALFG00 PVC Platts Domestic Japan Jpy/kg Monthly
cargoes were traded at $1,000-1,010/mt CFR China this AALFH00 PVC MOF CIF Japan Jpy/kg Monthly
week, pushing down the price of domestically-produced AALFJ00 ABS Platts Domestic Japan Jpy/kg Monthly
AALFK00 ABS MOF CIF Japan Jpy/kg Monthly
ethylene-based PVC in China. Caught between low-
Please send any comments and questions to
priced imported PVC and cheaper carbide-based PVC,
[email protected] and [email protected].
Chinese ethylene-based PVC makers were not seeking
spot VCM this week, a market source said. In Southeast
Asia, selling ideas for delivered VCM cargoes were
heard at $960/mt CFR against buying indications below two SM derivatives, which can have overlapping uses
$930/mt. Lower conclusions for October-loading PVC especially in the electronics sector, was only $33.80/
prompted one market participant to say VCM prices mt in 2013, but that has widened to $143.70/mt for
were on a slight downtrend, although supply remained the first nine months of this year. In 2013 the spread
tight. Integrated producers were mulling lowering PVC even briefly flipped to a discount for ABS on a couple
operating rates and selling off feedstock VCM for a of occasions, while in 2014 the premium has recently
better netback, several market sources said. hovered above $200/mt. Market sources in the Asian
ABS and polystyrene markets said the price spread
was crunched in 2013 due to the high SM prices at
News the time. Since HIPS consists of more than 90% SM,
while ABS consists of roughly 60% SM, the high cost
of the feedstock had a larger impact on HIPS than
Asian ABS premium to HIPS widens
on ABS, which also contains acrylonitrile (25%) and
fourfold on year in Jan-Sep on SM butadiene (15%). However, this year SM prices have
Singapore — The premium of acrylonitrile-butadiene- fallen, especially in the second half of the year due
styrene to competing co-polymer high-impact to poor demand from end-users such as expandable
polystyrene has widened by more than fourfold so far polystyrene, thereby reducing the feedstock cost for
in 2014 compared with a year earlier on falling styrene HIPS producers. The widening premium for ABS could
monomer prices, Platts data shows. The premium was result in lower demand as HIPS prices become more
last assessed at $205/mt on September 24, with HIPS competitive, market sources said, but they also added
up $5/mt to $1,705/mt CFR China and ABS stable that no big shift towards more use of HIPS had yet
at $1,910/mt CFR China. The price gap between the been seen among end-users in Asia.

Total planning to increase October date could be end of October or early November. We
US PP prices 10.50 cents/lb: letter have not received instruction from the planning side
Houston — Total Petrochemicals & Refining USA plans to to gather market information yet and so I expect the
increase polypropylene prices for October by 10.50 cents/lb, plant to remain shut in the next couple of weeks,”
the company said in a letter to customers that was obtained the source said The complex was shut July 6 due to a
by Platts on Wednesday. Total informed customers late mechanical fault at the cracker. The steam cracker can
Tuesday, the same day fellow producer Formosa Plastics produce 700,000 mt/year of ethylene and 350,000 mt/
Corporation USA issued a letter saying it would increase year of propylene and provides feedstock to a 330,000
prices by the same amount. Market sources said a double- mt/year high density PE plant, a 370,000 mt/year
digit increase was expected, and likely a way for producers HDPE/linear low PE swing plant and a 350,000 mt/year
to cover any feedstock-derived hike. The October increase polypropylene unit.
was in addition to all previously announced price increases,
according to the letter. In late August, Total Petrochemicals
Lithuania’s Neogroup begins
announced an outright increase of 3 cents/lb for September
independent of PGP behavior. Polypropylene contracts in six-week turnaround at Klaipeda PET plant
the US closely follow polymer-grade propylene contract London — Lithuania’s Neogroup started this week a
pricing as a majority of contracts remain on monomer- six-week shutdown of one of two lines at its 310,000
plus formulas, but more companies have been announcing mt/year polyethylene terephthalate plant in Klaipeda,
standalone increases — as Total did for September — as a company source said Wednesday. “Half of the factory
they attempt to shift contracts away from feedstock- [one line] will be closed; we are shutting down one
dependent formulas. PGP contracts for October could rise line until mid-November [and] will be running 18,000
as much as 8 cents/lb after a major producer revised up its mt per that [six-week] period,” the source said. The
October increase to 8 cents/lb from 5 cents/lb and both Neogroup line marks the start of scheduled maintenance
spot refinery- and polymer-grade propylene have registered at a series of European PET plants in October, with
increases over the past two weeks. Platts assessed September Indorama’s Rotterdam; Novapet’s Barbastro, Spain; and
contract prices at 83 cents/lb for homopolymer injection Equipolymers’ Schkopau, Germany, following. In total,
and 84 cents/lb for fiber grade, unchanged from August. maintenance is expected to take out approximately
865,000 mt/year of capacity in October, but that
is expected to be compensated by overall capacity
Indian Haldia’s PP, PE plants
additions. Over the past year, new plants have been
to remain shut in October: source opened in the UK and Belgium, as well as in Egypt and
Singapore — Haldia Petrochemicals’ naphtha-fed Turkey, adding around 842,000 mt/year. In the coming
steam cracker and associated downstream polypropylene months, India’s JBF Industries is expected to start its
and polyethylene units at Haldia in India’s West Bengal second 216,000 mt/year PET line in Geel, Belgium, while
state are expected to remain shut in most of October, a Polyplex is expected to start its 210,000 mt plant in
company source said Wednesday. “The earliest restart Corlu, Turkey, after a year’s delay.
POLYMERSCAN Volume 37 / Issue 39 / October 1, 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: [email protected]
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
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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 Symbol Description

Copyright © 2014, McGraw Hill Financial 2

Euro Contract Assessments (Euro/mt)

LDPE G-P 1450-1455 1450-1455 1420-1425 1445-1450 1420-1425 1128-1132 1828-1834

HDPE Inj 1350-1355 1350-1355 1350-1355 1350-1355 1350-1355 1050-1054 1702-1708

PP Homo Inj 1420-1425 1420-1425 1410-1415 1420-1425 1410-1415 1104-1108 1790-1796

GPPS Net 1500-1510 1500-1510 1500-1510 1500-1510 1500-1510 1167-1174 1891-1903

ABS GP/Nat 1690-1700 — 1690-1700 1690-1700 1690-1700 1314-1322 2130-2143

PET bottle grade 1159-1163 — 1159-1163 1159-1163 1159-1163 899-903

Platts European and African Polymer Spot Price Assessments

LDPE G-P 1510-1515 1258-1262 1238-1242 1208-1212 1649-1653 1610-1615 —

HDPE Inj 1491-1496 1243-1247 1223-1227 1193-1197 1618-1622 1568-1572 —

PP Homo Inj 1497-1502 1248-1252 1228-1232 1208-1212 1583-1587 1568-1572 —

PS G-P 1676-1689 1390-1400 — — 1760-1770 1755-1765 —

PET bottle grade — 1053-1057 — — — — 863-867

Copyright © 2014, McGraw Hill Financial 3

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$5/mt to $1,005/mt Wednesday. October-loading cargoes United States

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Asia sources. No deals, other offers or bids were heard by close

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Polymer Feedstocks: Olefins

Polymer Feedstocks – Ethylene Glycol Assessments 1200

Copyright © 2014, McGraw Hill Financial 15

Ethylene Market participants said that both of the furnaces at the

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Asia Clariant as a buyer with LyondellBasell, BP Refining and

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Polymer Feedstocks: Aromatics

Europe Weekly Average Spot*

supported PX demand. Feedstock isomer-mixed xylene,

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Polymer Feedstocks: Intermediates

Europe Weekly Spot

United States VCM CFR FE Asia ($/mt) 889-891

cents/lb) as lower feedstock pricing and weaker global

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and supply, sources said. Force majeure continues at United States

Global Production Update

Copyright © 2014, McGraw Hill Financial 26