[PETROCHEMICALS ]

www.platts.com

ASIAN PETROCHEMICALSCAN
Volume 27 / Issue 25 / June 21, 2013
FOB Korea CFR Taiwan CFR SE Asia CFR Japan CFR India CFR China China Domestic

Aromatics ($/mt)

Benzene 1265.001266.00* 12851286* 1261.501262.50 FOB* H1 Jul 12681270 -5 H2 Jul 12661268 -4 H1 Aug 12631265 -3 H2 Aug 12601262 H1 Sep 12581260 Benzene Paper Swaps: Bal month Jul NANA Jul 12641266 Aug 12591261 Sep 12541256 Toluene 1068.501069.50 FOB* 11001102** 11001102** 11181120 1085.501086.50** 79958005** 10901091++ H1 Jul 10601062 10701072 FOB* 10821084** 10861088++ H2 Jul 10661068 10881090** 10921094++ H1 Aug 10701072 H2 Aug 10731075 H1 Sep 10751077 SOLMX 10241026** 10391041** 10851087 CFR** NANA 10551057** 10591061++ ISO-MX 1169.501170.50* 1186.501187.50** 11861188 CFR** H1 Jul 11631165 11801182 H2 Jul 11681170 11851187 H1 Aug 11701172 11871189 H2 Aug 11711173 11881190 OX 13471349** 13671369 CFR** NANA** 13521354** 13721374** PX 1401.001402.00* 1426.001427.00+ 14261427+ H1 Jul 13991401 14241426 H2 Jul 14001402 14251427 H1 Aug 14011403 14261428 H2 Aug 14011403 14261428 Styrene 1684.501685.50 * 17121714 17281730 CFR** 17031705** 17071708** 1713.501714.50++ 1282512875 H1 Jul 16931695 17221724 H2 Jul 16911693 17201722 H1 Aug 16771679 17061708 H2 Aug 16631665 Methanol 392.00394.00 CFR 382.00384.00 408.00410.00 CFR 324.00326.00 355.00357.00** 25202530* Methanol CP CFR Asia (Jun) 450 MTBE 11081110 FOB Singapore MTBE factor: 1.133 Weekly Averages Benzene Benzene Toluene Toluene Toluene Toluene PX PX IsoMX IsoMX 1275.101276.10 1272.001273.00 1085.701086.70 1101.501102.50** 1105.501106.50++ 81078117** 1408.801409.80 1434.601435.60 1184.501185.50 1203.301204.30 FOB Korea FOB SEA FOB Korea CFR China CFR China China Domestic FOB Korea CFR Taiwan/China FOB Korea CFR Taiwan SM SM SM SM Methanol Methanol Methanol MTBE MTBE factor Naphtha (Jun 21) 1697.001698.00 1724.601726.60 1726.001727.00 1280012850** 356.00358.00 405.60407.60 2546.002556.00 1116.201118.20 1.138 863.00866.50 FOB Korea CFR Taiwan CFR China China Domestic CFR China CFR SE ASIA China Domestic FOB Singapore CFR Japan

*LC at sight, **LC 030 days, +LC 3045, #LC 30 days, ++LC 90 days. Note: Paraxylene CFR assessments are basis CFR Taiwan/China. Styrene CFR assessments are basis CFR Taiwan/China. Credit differentials calculated using 1 month LIBOR +1.5%. No balancemonth assessments from 16th of each month. PTA CFR China assessments reflect Fridays MOC assessment

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Commentaries

Olefins ($/mt)
Ethylene** Propylene** Butadiene** FOB Korea CFR Taiwan CFR SE Asia FOB Japan CFR China CFR NE Asia 11791181 12871289 12391241 13391341 13941396 12991301 13291331 14091411 12391241 12591261 12491251 12391241 12591261 Monday 12241226 12591261 13041306 13741376 13591361 13491351 Tuesday 12241226 12591261 13061308 13761378 13541356 13491351 Wednesday 12241226 12591261 13361338 14061408 12891291 12791281 Thursday 12241226 12871289 13361338 14061408 12891291 12791281 Friday 12391241 12871289 13391341 14091411 12591261 12391241 Weekly Average 1227.001229.00 1270.201272.20 1324.201326.20 1394.201396.20 1310.001312.00 1299.001301.00

Weekly Averages Ethylene CFR NE Asia Ethylene CFR SE Asia Propylene FOB Korea Propylene CFR China Butadiene CFR China Butadiene FOB Korea

**LC 030 days, +LC 3045, #LC 30 days, ++LC 90 days. Credit differentials calculated using 1 month LIBOR +1.5%.

Fiber Intermediates ($/mt)

PTA MEG++ Weekly Averages PTA CFR China PTA China Domestic MEG CFR China MEG China Domestic Monday 10601062 78007820 954956 70407060 Tuesday 10591061 77607780 964966 71607180 CFR SE Asia 10621064 953955 Wednesday 10631065 77807800 964966 71607180 CFR India 10871089 Thursday 10581060 77507770 951953 70707090 CFR China 10571059 951953 China Domestic 77157735

Friday Weekly Average 10571059 1059.401061.40 77157735 7761.007781.00 951953 956.80958.80 71507170 7116.007136.00

* PTA CFR China Domestic & MEG China Domestic in Yuan/mt

Benzene
Asian benzene slipped $2/mt day on day to $1,265.50/mt FOB Korea Friday, despite a rebound later in the day. Week on week, benzene fell $12.50/mt. August ICE Brent crude was assessed at $103.02/barrel at 4:30 pm Singapore time (0830 GMT), down $1.35/b day on day and down $2.11/mt from a week earlier. Benzene prices in Asia were tracking upwards earlier in the week and edged up to an intra-week high of $1,284/mt FOB Korea on Wednesday. As the crude market collapsed on Thursday on the back of weaker Chinese manufacturing activity, benzene prices fell. According to HSBC, Chinas manufacturing activity shrank again in June, hitting a nine-month low. The British banking giant said its preliminary purchasing managers index came in at 48.3, worse than Mays final reading of 49.2 and its lowest since September, AFP reported. Asian benzene was pegged at $1,261.50/mt FOB Korea early Friday, down $6/ mt from Thursdays close. The spot market was active early Friday with sellers offering mainly September cargoes. The offers for September cargoes were heard at $1,255-1,257/mt FOB Korea while buyers were bidding at $1,245-1,252/mt FOB Korea. According to industry sources, about nine September cargoes were traded this morning in the range of $1,250-1,257/ mt FOB Korea. C Chemical bought two September cargoes in the morning. The first cargo was traded at $1,250/mt FOB Korea, the seller was not known. The second cargo was concluded at $1,252/mt FOB Korea from a Chinese seller. Buyers continued to seek September cargoes on bargain hunting later in the day as the crude market firmed up. Bids for September cargoes were seen at $1,253-1,256/mt FOB Korea while offers were heard at $1,258-1,260/mt FOB Korea. Traders were also looking to buy H2 July cargoes at $1,250/mt FOB Korea and offering an August cargo at $1,265/mt FOB Korea. Prior to the

close of the Platts Market on Close assessment process Friday, spot discussions remained active as buyers continued to seek bargains offscreen. After the close of MOC, C Chemicals sold a September cargo to Arco Intertrade at $1,258/mt FOB Korea in an offscreen trade. In related news, South Koreas benzene exports inched up 0.7% month on month to 129,121 mt in May, data released Saturday by the Korea Customs Service showed. The countrys benzene exports to the US, China and Taiwan fell in May, while exports increased to Saudi Arabia. Saudi Arabia received 11,408 mt of benzene from South Korea in May after a two-month halt. South Korea exported 36,484 mt of product to China, down 14.5% from April. In plant news, Chinese stateowned Sinopecs Wuhan Petrochemical expects aromatics production as soon as it starts up its new naphtha-fed steam cracker in central Hubei province around June 28. The plant is expected to produce around 160,000 mt/year of benzene, 79,200 mt of toluene and 41,600 mt/year of xylenes, according to sources and Platts estimates. The company did not respond to a request for production capacity details.

Toluene
The FOB Korea toluene marker was assessed at $1,069/ mt Friday, down $13/mt from Thursday and down $10/mt week on week, pulled lower by crude oil futures. The toluene market hit an intra-week high of $1,098/mt Tuesday. August ICE Brent crude was assessed at $103.02/barrel at 4:30 p.m. Singapore time (0830 GMT) Friday, down $2.11/b week on week and down $1.35/b from Thursday. Early Friday, an H2 July FOB Korea toluene cargo was offered at $1,075/mt, and a bid was heard at $1,040/mt. An August cargo was bid at $1,065/mt. A September cargo was first offered at $1,075/

Copyright 2013, McGraw Hill Financial

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mt, while a bid was seen at $1,050/mt. The bid-offer range narrowed to $1,060-1,070/mt, but offers stopped after the bid rose to $1,065/mt. The bid then continued to rise to $1,070/ mt. Later Friday, an August offer emerged at $1,085/mt, and the bid sharpened to $1,075/mt. A broker said that the bid had risen to $1,077/mt before falling to $1,072/mt. A September cargo was bid at $1,070/mt. There were no registrations on the Platts Market on Close assessment process. The CFR China 90-day letter of credit marker was assessed at $1,090/mt Friday, down $8.50/mt week on week and down $12.50/mt from Thursday. Early Friday, an H2 July or H1 August-loading cargo was heard offered at $1,095/mt. Later on, a H2 July-loading bid was seen at $1,080/mt for a CFR China cargo of Asian origin with documents presentation within nine days. A July-loading cargo was bid at $1,085/mt. A trader in China said the bid was around $1,085/mt, with the offer level at $1,090-1,095/mt. The CFR China-FOB Korea toluene marker spread stood at $21/ mt Friday, up from $19.50/mt week on week and up $0.50/mt from Thursday. Despite the widening, the spread remains below freight parity. Freight to move a 2,000-3,000 mt cargo of toluene from South Korea to East China was assessed at $26-29/mt Friday, flat from last Friday and the day before. The domestic price in China was heard at Yuan 8,000/mt or $1,071.75/mt on an import parity basis, down Yuan 175/mt week on week while falling Yuan 25/mt from Thursday. The drop comes as inventory levels in China remain firm. The East China inventory level was heard at 110,000 mt, stable from last Friday, while the inventory level in South China was heard around 34,500 mt, up 1.47% from Friday. In market news, Japans aromatics output in May was mixed compared with April. Xylenes output fell 6% month on month to 526,700 mt in May; toluene dropped 5% to 133,200 mt; styrene monomer increased 2% to 215,500 mt; and benzene output was essentially flat, increasing by 100 mt to 375,400 mt. May output of the four aromatics increased between 12% and 31% year on year.

Polymers ($/mt)
PVC SUSP LDPE GP LLDPE HDPE YARN HDPE INJ HDPE BLMDG HDPE FILM PP RAFFIA PP INJECTION IPP FILM BOPP BLOCK COPOL PS GP HIPS ABS INJ CFR Far East CFR SE Asia CFR S Asia 10191021 10091011 10341036 14591461 14591461 14191421 14391441 14491451 14691471 14691471 14241426 14341436 14341436 14191421 14341436 14341436 14441446 14441446 14541456 14391441 14691471 14791481 14391441 14691471 14791481 14641466 14891491 14991501 14491451 14791481 14991501 14641466 15041506 15141516 18191821 18591861 18941896 19241926 19241926 19391941

For PVC, PS, and ABS, FE Asia refers to China. All polymer assessments are basis L/C 030 days. Credit differentials calculated using 1 month LIBOR +1.5%.

China Domestic (Yuan/mt exworks)

LDPE 1148011520 LLDPE 1073010770 HDPE FILM 1118011220 PP RAFFIA 1063010670 PVC ethylene-based 69907010 PVC carbide-based 65806600

Weekly averages (CFR FE Asia)

HDPE 1443.001445.00 LDPE 1459.001461.00 LLDPE 1414.001416.00 PP RAFFIA 1428.601430.60 PP INJECTION 1428.601430.60

Weekly averages (FOB Middle East)

HDPE 1428.001430.00 LDPE 1444.001446.00 LLDPE 1399.001401.00 PP RAFFIA 1413.601415.60 PP INJECTION 1413.601415.60
Note: Weekly polymer assessments are made each Wednesday for Far East Asia, SE Asia, and W Asia. In addition, weekly averages of the daily PE and PP Far East assessments are published each Friday and represent the average of the assessments from previous Thursday through Wednesday.

Solvent - MX
Asian solvent-grade mixed xylenes fell $25/mt week on week to a year-to-date of $1,025/mt FOB Korea and $1,060/mt CFR China Friday amid a bearish China domestic market and weaker crude futures in tandem with tumbling global financial markets after the US governments quantitative easing announcement. August ICE Brent crude futures were assessed at $103.02/ barrel at 4:30 pm Singapore time (0830 GMT) Friday, down $2.11/b week on week and down $1.35/b from Thursday. As a result, Asian solvent-MX fell to a year-to-date low Friday. In China, domestic solvent-MX prices were on a steady decline from Yuan 8,100/mt Monday to Yuan 7,900/mt Friday, which is equivalent to $1,049.06/mt CFR China. An offer for a July cargo was heard at $1,050/mt CFR China, while a bid for a July cargo was heard at $1,020/mt FOB Korea Friday. The solvent-MX price in China is collapsing, hit by increasing stocks amid oversuppliers and weaker demand due to a bearish construction sector, a trader in China said. There is still constant demand in China though;

Styrene monomer margins spike

200 150 100 50 0 -50 01-Mar 15-Mar Source: Platts 01-Apr 15-Apr 29-Apr 14-May 29-May 12-Jun ($/mt)

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buyers are expecting to the prices be down further, another trader based in China said. MX inventories stood at 130,000 mt in East China and 35,000 mt in South China. As summer driving season is coming, Chinese refineries are ramping up their run rates in an effort to secure enough gasoline for consumers, a trader based in Beijing said. In contrast, the FOB Korea market has been quiet due to sluggish prices, which discouraged selling intentions by South Korean producers. There is heard only one cargo of 2,000 mt available in the spot market; most producers are considering rolling over their solvent-MX to August, a trader in Seoul said. In market news, China Petroleum & Chemical Corp., or Sinopec, Tuesday cut its East China solvent-MX ex-works prices Yuan 100/mt, or 1.2%, market sources said Wednesday. Sinopecs two subsidiaries in East China, Sinopec Zhenhai and Yangzi-BASF, are now offering ex-works solvent-MX at Yuan 8,100/mt, or $1,077/mt on an import parity basis. The company last adjusted its East China MX prices on June 17, when it cut the price Yuan 100/mt to Yuan 8,200/mt.

China toluene, MX, styrene inventory levels

Product Inventory level (mt) Prior week(mt) Change on week(%) 110000 130000 69000 34500 35000 6500 110000 130000 60000 34000 35000 6000 0.00 0.00 15.00 1.47 0.00 8.33

East China:
Toluene Mixed Xylenes Styrene

South China:
Toluene Mixed Xylenes Styrene

Asian aromatics shipping routes

Spot freight to/from Korea & USGC
From: Korea To: 2-3kt Korea 5kt USGC 5-12kt 67-72 67-72 72-78 75-81 (SM, PX,MX) (PX, MX) (SM, PX,OX) (PX)

Paraxylene
Asian paraxylene prices were assessed at $1,401.50/mt FOB Korea and $1,426.50/mt CFR Taiwan/China Friday, down $7.50/ mt day and day and down $17 from last Friday. PX started the day with both July and August bids at $1,380/mt CFR, but buying sentiments improved by afternoon and accelerated during the Platts Market on Close assessment process. Oman Trading International submitted a bid for August PX at $1,404/mt CFR and raised it to $1,420/mt CFR, but the sharpest August offer available was at $1,440/mt CFR. For July, buying interest was at $1,420/mt CFR for H1 and offer was at $1,430/mt CFR for H2. On a floating basis, there was an H2 July offer at the July average price plus $2/mt. PX has fallen for five consecutive days since last Friday due to macro economic issues and a lack of end-user demand. A Japanese trader said downstream purified terephthalic acid makers were not replenishing feedstock even though their inventory level has fallen. End users only want to buy on floating basis, if they buy at all, he said. They are also waiting for the PX July Asia contract price before deciding on their next move, he added. Separately, a Chinese trader said that there was sufficient PX in the market but if PX prices fell low enough, PTA makers could then raise operation rates and that could soak up the excess PX. From June 3-21, the average PX spot price was $1,443/mt CFR while PTA was $1,060/mt CFR China. Based on a PX conversion factor of 0.66 and a conversion cost of $150/mt, PTA producers need to break even at $1,102/mt, Platts data showed. Even though PTA production margin in June is still negative at minus $31/mt, it is actually the best margin in 11 months due to weaker PX. In market news, Japans JX Nippon Oil & Energy has nominated its paraxylene Asia contract Price for July at $1,500/mt, up $100/mt from the June settlement, a company source said Friday. Earlier, US-headquartered ExxonMobil also nominated at $1,500/mt CFR, while Idemitsu Kosan on Thursday nominated at $1,550/mt CFR. All nominations will expire June 28.

Korea Taiwan 29-35 (BTX, SM) 22-25 (PX) East China 26-29 (BTX, SM) 21-24 (PX) South China 29-32 (SM, Tol) 24-27 (PX) India 61-66 (Tol) USGC 67-72 (10kt Bz, Tol)

Spot freight from Southeast Asia

From: Pasir Gudang To: 3kt Map Ta Phut 3kt Indonesia 3kt 30-32 (Bz) 50-53 (SM) 55-57 (Bz)

Singapore 16-20 (Bz) 35-37 (Bz) Indonesia 28-32 (Tol) East China Korea Taiwan 50-52(Tol) India 45-48 (OX) 52-55 (OX) Al-Jubail

65-68 (Bz)

Spot freight from Middle East

From: Middle East Middle East To: 2-3kt 5-7kt Singapore 57-60 Korea Taiwan 69-71 East China 73-75 South China 70-72 India 40-43 Southeast Asia (SM, MTBE) 58-61 (PX) (SM) (SM, OX) (SM) (SM, OX) 47-50 (PX)

Spot freight from India

From: India To: 3kt Singapore 44-53 (Bz) Indonesia East China 70-72 (OX) Pakistan Middle East India 5-7kt 47-49 69-75 16-19 28-30 (PX) (PX) (PX) (Bz)

*Key: BTX = Bz, Tol, xylenes (OX, MX, solvent-MX); Bz = benzene, Tol = toluene, SM = styrene monomer, MX = isomer-mixed xylenes, PX = paraxylene, OX = orthoxylene, Sol-MX = solvent-mixed xylenes, MTBE = methyl tertiary-butyl ether *Please refer to the methodology guide for details on port locations

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Isomer - MX
Asian isomer-grade mixed xylenes were flat day on day but down $19.50/mt week on week to be assessed at $1,170/ mt FOB Korea and $1,187/mt CFR Taiwan Friday. Firm buying supported the Asian isomer-MX market Friday as global equity markets tumbled after the US governments quantitative easing announcement overnight. August ICE Brent crude was assessed at $103.02/barrel at 4:30 pm Singapore time (0830 GMT) Friday, down $2.11/b week on week and down $1.35/b from Thursday. During the Platts Market on Close assessment process for isomer MX, GS Caltex and SK Global Chemical registered firm bids for H1 August and any August, respectively. GS Caltex bid at $1,175/mt CFR Taiwan initially, then raised it to $1,185/mt CFR Taiwan, while SK GC bid at $1,157/mt FOB Korea and raised it to $1,169/mt FOB Korea. But were left standing. Isomer-MX hit an intra-week high Monday at $1,203/ mt FOB Korea and $1,223/mt CFR Taiwan on active buying by Trammo, which bid up a H2 July cargo from $1,200/mt CFR Taiwan to $1,219/mt CFR Taiwan. The MOC process has been active this week, with two deals done. Lotte Chemical Tuesday offered a H2 July cargo at $1,225/mt CFR Taiwan and lowered it to $1,210/mt CFR Taiwan where it traded with Samsung C&T, and Thursday offered an August cargo at $1,212/mt CFR Taiwan and dropped it to $1,188/mt CFR Taiwan where it traded with Trammo. In market news, Indias Mangalore Refinery and Petrochemicals Ltd. sold 10,000 mt of mixed xylenes for loading over July 19-28 from New Mangalore to a trading company at a discount of around $50/mt to the weekly average of Platts FOB Korea isomer-MX assessment in July. MRPL last sold a similar cargo for loading over July 6-15 from New Mangalore to a trading company at a discount of $45-50/mt to the weekly average of Platts FOB Korea isomer-MX assessments in July. China Petroleum & Chemical Corp., or Sinopec, Monday cut its East China isomer-MX ex-works prices by Yuan 150/mt, or 1.7%, market sources said Wednesday. Sinopecs four subsidiaries in East China -- Sinopec Zhenhai, Sinopec Nanjing, Sinopec Jiujiang and Yangzi-BASF -- are now offering ex-works isomer-MX at Yuan 8,450/mt, equivalent to $1,134/mt on an import parity basis.

Foreign Exchange Rates

AUD/USD 0.92/0.92 EUR/USD 1.32/1.32 GBP/USD 1.55/1.55 USD/JPY 97.95/97.96 USD/HKD 7.76/7.76 USD/MYR 3.20/3.21 USD/SGD 1.27/1.27 USD/YUAN 6.1766

Contract Prices ($/mt)

Paraxylene
PX average CP settlements (Jun ) ExxonMobil Idemitsu JX Nippon S-Oil PX producer CP nominations (Jul) ExxonMobil Idemitsu JX Nippon S-Oil Sinopec CP nomination (Jun): Sinopec CP settlement (May): Sinopec CP nomination (Jun): Sinopec CP settlement (May): 1400 1400 1400 1400 1400 CFR CFR CFR CFR CFR CFR CFR CFR CFR Asia Asia Asia Asia Asia Asia Asia Asia Asia

1500 1550 1500 NA 1439 1435 Yuan 10600 Yuan 10600

Benzene
JX Nippon nomination (JUN): JX Nippon settlement (JUN): 1360 1305

MEG
Producer CP nominations (JUN) MEGlobal Sabic Shell 1190 1150 1190 CFR Asia CFR Asia CFR Asia

Orthoxylene
Asian orthoxylene fell $10/mt week on week to $1,348/mt FOB Korea and $1,373/mt CFR China Friday as weak feedstock and downstream markets continued to exert downward pressure. Feedstock isomer-grade mixed xylene was assessed at $1,171/ mt FOB Korea Friday, up a marginal $1/mt from a day earlier and down $19.50/mt week on week. Downstream phthalic anhydride CFR China marker edged down by $5/mt week on week to $1,325/mt Thursday, while the CFR Southeast Asia marker remained flat at $1,375/mt. On a CFR China basis, the PA-OX spread narrowed $5/mt week on week to minus $48/ mt Friday. With PA demand remaining weak, South Koreas Lotte Chemical cut the combined operating rate of the OX units at its No. 1 and No. 2 aromatics plants at Ulsan to 60% of capacity Sunday. The No. 1 unit has a nameplate capacity of 60,000

mt/year of OX, 200,000 mt/year of paraxylene and 100,000 mt/year of benzene, and the No. 2 unit 150,000 mt/year of OX and 600,000 mt/year of PX. The OX units were running at a combined rate of 90% earlier, the source added. We have reduced our operating rate from 90% to 60% as of June 16 and we will be meeting our contract volumes only, so we will not be selling spot cargoes for the time being, the source said. Industry sources said the cut would not have much effect on the market. The impact is not that great as the spot quantity [from Lotte Chemical] is not huge, an Asian trader said. A South Korean PA producer placed a notional buying idea for a July CFR Korea cargo below $1,350/mt. In the spot market earlier in the week, a 3,000 mt July cargo of Indian origin OX was traded at $1,380/mt CFR China. Chinese PA producers preferred to secure domestic OX cargoes due to the wide price gap between domestic and imported cargoes. Sellers were keen to offload cargoes on a formula basis this week. Offers for July-loading CFR Zhangjiagang cargo were heard at a $20/mt premium to the July weekly average of Platts CFR China assessment, while offers for August-loading CFR Zhangjiagang were heard at a $35/mt premium to the August weekly average of Platts CFR China assessment. However, buying sentiment plummeted

Copyright 2013, McGraw Hill Financial

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Thursday as confidence in the Chinese economy faded further. HSBC said Chinas manufacturing activity shrank again in June, to a nine-month low. The bank said its preliminary purchasing managers index came in at 48.3, worse than Mays final reading of 49.2 and its lowest since last September. Crude oil prices slid further on the back of the weak data. A bonded warehouse OX cargo was offered at $1,360/mt Thursday and traded Friday at that level. Meanwhile, PetroChina cut its ex-works price of OX in northeast China by Yuan 200/mt or 2% Wednesday, then raised it by the same amount Friday, market sources said. The company is now offering OX in northeast China at Yuan 9,900/ mt, or $1,345/mt on an import parity basis. Industry sources said the company raised its offer after another major Chinese OX producer did not lower its price. Current domestic ex-works offers remain cheaper than imported cargoes. In Southeast Asia and India, OX was assessed at $1,368/mt and $1,353/mt, respectively, down $10/mt from a week earlier. Demand for PA in India remained weak while supply from Europe was reported to have increased.

Subscriber Notice
Platts to postpone launch of isomer-MX CFR Korea Platts will postpone the launch of daily CFR Korea isomerMX assessments until further notice. Please send any queries or comments to pl_asia_petchem@platts.com with a copy to pricegroup@platts.com. Platts proposes to discontinue CFR Japan SM assessment Platts invites industry feedback on its proposal to discontinue the spot weekly assessment for styrene monomer basis CFR Japan (PHABZ00). This assessment is currently published on the Platts Petrochemicals Alert (PCA) service line, Asian Petrochemicalscan and Platts database. Please send any comments and queries to pl_asia_petchem@platts.com with a copy to pricegroup@platts. com by June 30, 2013. Platts to launch Middle East Polymer Contract Prices Platts will publish monthly polymer contract prices for the Middle East from SABIC, Borouge, Equate and Qapco/Muntajat starting July 25, 2013. The listed prices will be published weekly on Wednesday. Please send any comments or queries to pl_asia_ petchem@platts.com with a copy to pricegroup@platts.com by July 14. Platts proposes modification to Asian isomer-MX credit terms Platts invites industry feedback on its proposal to modify the credit terms for Asian isomer-grade mixed xylene FOB Korea and CFR Taiwan assessments. Under current Platts methodology, FOB Korea assessments are assessed based on letter of credit at sight. Platts proposes to modify this to LC 30 days. Platts also proposes that the credit term for CFR Taiwan assessments, currently based on LC 30 days, to be modified to LC 30 days for Asia origin cargoes and 60 days LC for deep-sea origin cargoes. Please send any queries or comments to pl_asia_petchem@platts.com with a copy to pricegroup@platts.com by July 26, 2013. Platts proposes changes to CFR India PTA credit term Platts invites industry feedback on its proposal to modify the credit term for its purified terephthalic acid CFR India assessment from 30 days letter of credit to 90 days letter of credit. Please send any queries or comments by July 26 to petchems@platts.com with a copy to pricegroup@platts.com. Platts proposes to discontinue FOB Japan butadiene assessment Platts invites industry feedback to discontinue the weekly Asian butadiene spot price assessment basis FOB Japan (PHAKD00). This assessment is currently published on the Platts Petrochemicals Alert (PCA) service line, Asian Petrochemicalscan, Platts Olefinscan and Platts database. Please send any comments and queries to pl_asia_petchem@platts.com with a copy to pricegroup@platts.com by August 5, 2013.

Styrene
Asian styrene monomer prices have been extremely volatile this week, with prices fluctuating amid bearish economic news and falling crude values on the one hand and tight spot supplies in Asia on the other. Styrene prices on a CFR China basis rose $40/mt Monday, retreated $20/mt Tuesday, then rose again by $10/mt on Wednesday, to fall $29.50/mt on Thursday, and finally increasing by $6.50/mt on Friday to close at $1,714/ mt CFR China. Week on week, prices on a CFR China basis have increased by $6.50/mt, while on an FOB Korea basis prices have moved up by $6.50/mt week on week as well, to close at $1,685/mt on Friday. With most buyers seen to be cautious, inventory in China was seen increasing. In eastern China, inventory rose by around 9,000 mt from the previous week to 69,000 mt on Friday, while in southern China, inventory was seen increasing by around 500 mt to 6,500 mt during the same period. The domestic market price for prompt cargoes in eastern China closed at Yuan 12,850/mt, or around $1,731/ mt on an import parity basis. This was an increase of Yuan 50/mt from Thursday, and up Yuan 175/mt week on week. However, the market was seen in sharp backwardation, with offers for July delivery heard at Yuan 12,450/mt and for August at Yuan 12,350/mt. On Friday, a deal for an August-loading cargo was heard concluded at $1,700/mt CFR China, while a deal for a July-loading cargo was heard concluded at $1,725/ mt CFR China, while offers for July-loading cargoes were heard at and above $1,730/mt CFR China. However, as all the cargoes involved were not of open origin, Platts normalized the value and assessed the laycans at a discount. The SM market in North Asia remained relatively tight, as the unplanned outage at South Koreas Lotte Chemicals 560,000 mt/year SM plant at Daesan was still continuing. As of Friday it was still not clear when the company would be able to restart the plant, a source close to the company said. I have totally no idea, a source close to the company said. The plant was shut on June 10 due

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PLATTS ASIAN pETROCHEMICALSCAN

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to technical problems. Supplies from the Middle East were seen to have been cut as well. Feedstock supplies from a 770,000 mt/year SM plant belonging to Jubail Chevron Phillips, located at Jubail, were heard to have been cut. Jubail Chevron Phillips did not comment when contacted. Due to the cut in SM supplies, a downstream 220,000 mt/year polystyrene plant of Saudi Polymers Company at Jubail was heard to have been shut, but a company source said that the plant was shut down last week due to technical issues. Market sources told Platts the PS plant was shut down because it had not been receiving feedstock from Jubail Chevron Phillips SM plant at Jubail.

Methanol
CHINA: Methanol on a CFR China basis was assessed at $356/ mt Friday, down $2/mt week on week and flat from Thursday. A cargo was heard to have traded at $360/mt this week, although market sources felt there was no further support at this level. The highest bid was heard at $355/mt, for a 5,000 mt cargo arriving in H2 July. The buyer said the offer level was around $357/mt. Other sources said lower offers were seen, at $352/ mt, although this could not be verified with the sellers. A source added that other bids were around $348-350/mt. The domestic price in China was heard around Yuan 2,525/mt, or $328.56/ mt on an import parity basis, down Yuan 25/mt from last Friday after starting off the week on a strong note, heard at Yuan 2,565/mt. NORTHEAST ASIA: CFR Korea methanol was assessed at $393/mt Friday, up $1/mt week on week. A trader said a bid was received at $392/mt. The buyer said he had already bought 3,000 mt in the domestic South Korean market but was open to purchasing more. If we can find a good offer, I would like to

buy, he added. A trader said he was a seller at above $400/ mt. However, a trader in South Korea felt the inventory level in the country was sufficient. A seller who had sold a cargo at $392/mt last Friday said he had no more cargoes to offer. CFR Taiwan was assessed at $383/mt, up $2/mt from last Friday. A trader said that cargoes headed to Taiwan were scarce, and had not found an offer yet. The trader was a buyer at above $380/ mt. Another source said he had heard a range of $380-385/ mt this week, while a trader said he would be interested to sell at $385/mt. A seller said he was in discussions with a buyer in Taiwan, and wanted a minimum of $380/mt because he had low spot volumes. Meanwhile, a buyer in Taiwan said spot prices were too high and had decided to get more volume from a contract supplier instead. Another buyer said he was still looking for end-July to early- August arrival cargoes, while another trader in Taiwan said the market was soft and was hoping to buy around $370/mt. SOUTHEAST ASIA AND INDIA: CFR Southeast Asia was assessed at $409/mt, up $3/mt week on week and day on day. A trader received a bid of $410/mt for a 5,000 mt midJuly arrival cargo. The bid could not be verified with the buyer. Another trader in Southeast Asia said he did not receive this bid. A third trader said he was looking for volumes, and felt the market was getting tighter. CFR India was assessed at $325/ mt, down $10/mt from the week before amid stronger supply and weak demand due to the monsoon season. The buying idea was heard around $310-317/mt. Most of the consumers are buying only on [a] need to buy basis, said a trader. Another source noted the monsoon had not only affected downstream industries, but also logistics, because movement has become very restrictive. He added the price in India was now more attractive than in China for sellers in Iran, resulting in more volumes headed to India. However, one trader said he had sold 5,000 mt of methanol above $370/mt, a level other traders said they had not heard. Traders in India said the price was on the high side.

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MTBE
Asian MTBE prices fell $10/mt from Thursday to $1,109/mt FOB Singapore Friday, and were down $6/mt week on week, even as crude oil futures traded higher during mid-afternoon Asian trade. In gasoline markets, 92 RON was 7 cents/barrel higher from Thursday at $115.84/b, but down 23 cents/b week on week. The 95/92 RON inter-octane spread narrowed 23 cents/b day on day but was up was 13 cents/b week on week to be assessed at $2.60/b Friday. The 97/92 RON spread fell 27 cents/b day on day but was up 16 cents/b week on week at $4.99/b, while the 97/95 RON spread edged down 4 cents from Thursday but was up 3 cents/b at $2.39/b. Reflecting the firm demand for spot, Vitol placed a bid during the Platts Market on Close assessment process Friday at $1,101/mt FOB Singapore for a 2,000 mt cargo loading July 27-31, which remained standing at the close. The market was seen in backwardation with H1 July assessed at $1,110/mt FOB Singapore and H2 July

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PLATTS ASIAN pETROCHEMICALSCAN

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at $1,108/mt FOB. The Asian MTBE factor, which measures the ratio between the daily assessments for FOB Singapore MTBE and 92 RON gasoline, tumbled 10 points day on day to 1.133, and was down 4 points from last Friday. Traders said there few spot cargoes seen in the market. August ICE Brent crude futures were assessed at $103.02/b at 4:30 pm Singapore time (0830 GMT) Friday, down $1.35/b from Thursday and down $2.11/b week on week.

Ethylene
Asian ethylene prices were firmer this week as buyers restocked. The CFR Northeast Asia marker rose $15/mt day on day and week on week to be assessed at $1,240/mt, while the CFR Southeast Asia marker rose $28/mt week on week, but stayed unchanged day on day at $1,288/mt amid limited cargo availability. Buying indications were heard around $1,2001,230/mt CFR China. Offers were seen starting from $1,250/ mt CFR China. An early July arrival cargo was heard to have been concluded at $1,250/mt CFR China Friday. But this was not taken fully into the Platts assessment process as the laycan falls beyond the assessed period of 20-40 days. Market is active again after being dead for weeks. Sellers are very persistent on their offers, and some buyers need to restock. Thus, buyers have to raise their bid levels or settle on a formula basis with sellers, said a Chinese source. The FOB cost for June and July is different. In June, we see ample of material and thus prices are lower in June than July. Sellers are unwilling to give in for July arrival cargoes as material is tighter and the FOB cost is higher, said a Northeast Asian end-user. In South Korea, selling indications were seen starting from $1,200/ mt FOB Korea, with buying indications in the mid-$1,100s/mt FOB Korea. In Southeast Asia, a regional supplier had offered a July arrival cargo earlier in the week at $1,320/mt CFR, but was heard to have adjusted it to $1,295/mt CFR Southeast Asia mid-week. A deal was heard concluded at $1,285/mt CFR Southeast Asia on Wednesday. On Thursday, a regional enduser bought 4,500 mt of Northeast Asia-origin ethylene for second-half July delivery via tender at $1,288/mt CFR Southeast Asia. Upstream in the crude market, the front-month ICE Brent contract was assessed Friday at $103.02/barrel at the 4:30 pm Singapore close (0830 GMT), down $1.35/b day on day and down $2.11/b week on week. In related news, South Koreas olefins exports fell across the board in May, compared with April, data released last Saturday by Korea Customs Service showed. The countrys ethylene exports fell 14.8% from April to 104,205 mt in May, according to the data.

on day to be assessed at $965/mt. But prices started losing steam Thursday and fell $13/mt day on day to be assessed at $952/mt CFR China. On Friday, offers for end-June/early July arrival cargoes were heard at $950/mt CFR China. Offers for H2 July arrival cargoes were heard at $960/mt CFR China. Unlike fellow fiber intermediate terephthalic acid, there was ample supply of imported MEG. PTA prices were relatively stable as demand and supply were balanced. Actively traded September PTA futures on the Zhengzhou Commodity Exchange fell Yuan 58/mt week on week to Yuan 7910/mt Friday. Despite the slight uptick in prices this week, overall sentiments remained weak due to a poor sales/production ratio. Sales/production ratio remained at below 100%, which means polyester inventory was piling up. The ratio was heard at 70-80% on Thursday and Friday, compared to 60-70% last Friday. Meanwhile, MEG inventories in East China rose slightly to 920,000 mt, from 900,000-910,000 mt last week. In plant news, Taiwans Nan Ya Plastics has again delayed the restart of its 700,000 mt/year No. 4 monoethylene glycol line in Mailiao to the second half of July, a company source said Wednesday. The plant was shut in early April for 45 days of annual maintenance. The restart was originally scheduled for mid-May but this was pushed back to early June due to a reactor problem, and subsequently to late June. The reactor still hasnt been fixed, so we need more time, the source said. The company has four MEG lines in Mailiao. The No. 1, No. 2 and No. 3 lines each have a MEG production capacity of 350,000 mt/year. The three lines are currently running at 100%.

Propylene
Asian propylene prices surpassed $1,400/mt CFR China this week to hit a near four-month high. The FOB Korea and the FOB Japan markers were assessed at $1,340/mt and $1,330/mt, respectively, Friday, both up $35/mt week on week. The CFR China marker jumped $35/mt over the same period to $1,410/ mt, while the CFR Taiwan marker rose $35/mt at $1,395/mt. An any July arrival cargo was offered at $1,400/mt CFR China on an L/C 90 days basis, while a bid was heard at $1,360/ mt CFR China Tuesday. H2 July arrival cargoes were offered at $1,395/mt CFR China on L/C 90 days basis, while bids were at $1,380/mt CFR China on similar credit terms Tuesday. On Wednesday, a bid for H2 July arrival cargo was heard at $1,400/ mt CFR China on an L/C 90 days basis. H2 July arrival cargo offer indications were at $1,420-1,430/mt CFR China, while a bid indication was at $1,410/mt CFR China Wednesday. On Thursday, a deal was heard concluded at $1,420/mt CFR China, Taixing, L/C 90 days. On Friday, offers were heard at $1,4301,440/mt CFR China, L/C 90 days, while bids were heard at $1,390-1,400/mt CFR China. Sources said spot availability for H2 July arrival cargoes was limited and acrylic acid producers were actively looking for propylene cargoes in the market. The last time prices were above $1,400/mt CFR China was February 26 at $1,415/mt CFR China. In South Korea, a H1 August loading cargo was heard concluded at $1,330/mt FOB Korea Monday, while offers were at $1,350/mt FOB Korea. Platts

MEG
Asian monoethylene glycol prices edged up $2/mt week on week to be assessed at $952/mt CFR China and $954/mt CFR Southeast Asia Friday, despite sentiments remaining bearish. MEG started the week on a firm note, with market seeing its biggest gain Tuesday when CFR China prices rose $10/mt day

Copyright 2013, McGraw Hill Financial

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did not reflect the transaction as the loading falls outside the assessment laycan of 20-40 days forward. A bid for H1 August loading cargo was heard at $1,350/mt FOB Korea Thursday, but offers were withdrawn as producers expected prices to increase further. Offers were heard at $1,400/mt FOB Korea on Friday. In Southeast Asia, propylene prices was assessed at $1,300/ mt CFR Friday, unchanged from a week earlier. IN contrast to Northeast Asia, the region is slightly long with most buyers fully covered and regional suppliers looking to sell cargoes. In statistics news, South Koreas propylene exports in May fell 11.8% month on month to 83,916 mt, data released Saturday by Korea Customs Service showed.

unit. In Southeast Asia, Petrokimia Butadiene Indonesia, wholly owned by Chandra Asri Petrochemical, plans to start up a 100,000 mt/year butadiene extraction unit at Cilegon in Banten province in July. French tiremakers Michelin and PBI said Monday they plan to build a $435 million synthetic rubber plant in early 2017, with construction expected to begin in early 2015. The two companies will set up a joint venture company owned 55% by Michelin and 45% by PBI.

PVC
Asian polyvinyl chloride prices were mixed this week amid increasing uncertainty and despite Taiwans Formosa Plastics, Asias largest PVC producer, announcing its July offer prices Tuesday. Price discussions havent started yet; there are not many numbers in the market, a trader said. PVC on a CFR China basis was up $10/mt week on week at $1,020/mt Wednesday and on a CFR Southeast Asia basis flat at $1,020/ mt amid thin discussion. The CFR India marker was down $5/ mt week on week at $1,035/mt amid a falling a rupee and concerns demand will decrease in monsoon season. In Taiwan, Formosa Tuesday hiked its offers for July-loading cargoes by $30-40/mt from June, a company source said. The company is offering July-loading PVC at $1,030/mt on a CFR China and CFR Southeast Asia basis, up $30/mt from June, and Julyloading CFR India cargoes at $1,050/mt CFR, up $40/mt from June. It is the second consecutive month the company has raised PVC offers. It hiked offers for June-loading PVC cargoes by $30/mt, after slashing prices for April and May cargoes by a total $120/mt. Although the monsoon season has begun in India and the rupee has depreciated, domestic PVC offer prices from Indian producers have risen on continuing firm demand amid tight supply, the source said, explaining the bigger increase for CFR India cargoes. He also attributed the overall increase in July offers to limited cargoes from the US, adding the company is offering was about 65,000 mt of PVC for July, similar to June volumes. In the CFR China market, an offer for Japan-origin PVC was heard at $1,030/mt, while a bid idea stood at $1,010-1,020/mt. Demand is not very bad nor very firm, but the volume of inquiries from buyers is less than before amid cautious trading, a trader based in China said. A trader based in Singapore said: PVC demand in China will likely continue to be firm until at the end of July as PVC endusers will be procuring feedstock to make finished goods to sell during the Christmas season until September-October. In the CFR Southeast Asia market, an Indonesian origin July PVC offer idea was heard at $1,010-1,030/mt. The PVC market will likely continue to be firm until July as end-users tend to stockpile before the Ramadan season begins in July, South Korean producers cut their offering volume and US origin PVC tightens, a trader based in Indonesia said. But buyers are hesitating to bid until Formosa concludes its deals. In India, an offer was heard at $1,040/mt CFR India, but buyers are reluctant to take cargoes at this price level, a trader in India said. There is increasing resistance to high PVC prices amid uncertainty due to weak currency and the monsoon, the trader added. Buyers

Butadiene
Butadiene prices sank to the lowest in almost four years Friday amid weak demand and a synthetic rubber glut in China. The FOB Korea benchmark was assessed down $120/mt week on week at $1,240/mt, and the CFR China marker down $110/ mt at $1,260/mt, both the lowest since July 24, 2009. A spot cargo was sold to an end-user in Taiwan Tuesday for about $1,260/mt CFR Taiwan for H1 July. Thailands Bangkok Synthetics Tuesday awarded a tender for 2,000 mt of butadiene loading July 5-9 at a discount to an average of butadiene CFR Northeast Asia assessments, equivalent to FOB Map Ta Phut. Subsequently, market sentiment soured as China Petroleum and Chemical Corp., or Sinopec, cut its ex-works prices for butadiene by 10% Wednesday due to weak demand and high synthetic rubber stocks, end-users said. The cut is the second for the state-owned company this month, after it lowered prices by Yuan 500($81)/mt on June 6. Sinopecs subsidiaries in East, North and South China Wednesday slashed their butadiene offers Yuan 1,000/mt to Yuan 9,500/mt, or about $1,290/mt on an import parity basis. However, end-users said ex-warehouse prices for butadiene hovered at Yuan 8,800-9,000/mt. The weak demand was reflected in statistics from South Korea, where butadiene exports fell 32% month on month in May to 16,458 mt. Also pressuring down prices has been thin demand from the US this year. South Korea shipped 9,006 mt of butadiene to the US over January-May, down 74% from a year earlier. Producers and end-users said rubber demand was poor from tire makers, especially in China, resulting in a build-up of domestic rubber stocks. Synthetic rubber stocks in warehouses at Qingdao in East China, eastern Shandong province, were at 56,400 mt June 14, up 1% from May 30, data from the Qingdao International Rubber Exchange showed. Japanese tiremaker Bridgestone said May 8 that its production in the first quarter stood at 45,000 mt, compared with 47,000 mt in Q1 2012. Market participants were concerned that fresh production capacity could affect the spot market. China state-owned Sinopecs Wuhan Petrochemical plans to start up a new naphtha-fed steam cracker on June 28 that will provide crude C4 feedstock to a new butadiene extraction unit that will be able to make up to 120,000 mt/year of product. In Taiwan, state-owned CPC Corp. plans to start trial runs at its new No. 6 steam cracker at Linyuan around June 25, with an associated 100,000 mt/year butadiene extraction

Copyright 2013, McGraw Hill Financial

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are hesitating to ask about large quantities; monsoon will discourage demand for pipes in the construction and agriculture sectors.

LDPE
Asian low density polyethylene prices firmed for the third consecutive week on continued tight supply. Both CFR Far East Asia and CFR Southeast Asia markers edged up $5/ mt week on week to be assessed at $1,460/mt Wednesday. Participants preferred to stay on the sidelines this week, waiting for fresh offers from major Middle Eastern producers next week. Southeast Asia LDPE was heard to have been traded at $1,500/ mt CFR China. A Middle East producer offered LDPE at $1,480/ mt L/C 90 days this week, but buying interest was thin. Supply remained tight but the momentum in the price rise lost steam this week. Though supply is tight but demand were bad. Buyers can no longer accept any further hikes in prices, said a Middle East producer. Shipments were expected to be delayed amid congestion at Middle East ports. In Southeast Asia, regional LDPE was heard sold at $1,500/mt CFR basis. Thai-origin LDPE was heard offered at $1,540/mt CFR Indonesia. In South Asia, offers were heard at $1,490-1500/mt CFR India.

LLDPE
Low density polyethylene prices were mixed this week in thin trade. LLDPE was assessed at $1,420/mt CFR Far East Asia Wednesday, up $10/mt week on week; at $1,440/mt CFR Southeast Asia, also up $10/mt; and at $1,450/mt CFR South Asia, unchanged from last week. Activity was thin as participants preferred to stand on the sidelines this week to wait for fresh offers from major Middle Eastern producers expected next week. Trades were heard in the range of $1,410-1,420/mt CFR China L/C AS. Meanwhile, one Middle Eastern producer offered this week at $1,440/mt, with a L/C 90 days. Southeast Asian material were heard offered at $1,460-1,500/mt CFR China. These cargoes do not attract import taxes under the China-ASEAN FTA. Shipments were expected to be delayed amid congestion at Middle Eastern ports. In Southeast Asia, Middle Eastern material was heard offered at $1,450/mt CFR Vietnam, with bids at $1,420/mt CFR Vietnam. Regional non-dutiable cargoes under the ASEAN FTA were heard offered at $1,5201,550/mt CFR Southeast Asia. In South Asia, offers were heard at $1,450-1,460/mt CFR India, with a deal at $1,450/mt CFR India.

for fresh offers from major Middle Eastern producers expected next week. HDPE-film was assessed Wednesday at $1,445/mt CFR Far East Asia, up $25/mt week on week; at $1,445/mt CFR Southeast Asia, up $5/mt; and at $1,455/mt CFR South Asia, up $5/mt. Southeast Asia origin cargoes were heard to be offer at $1,470-1,480/mt CFR China. Deals were heard concluded at $1,440-1,450/mt CFR China. Bonded cargoes were heard concluded at $1,450-1,460/mt. Shipments were expected to be delayed amid congestion at Middle Eastern ports. Ramadan is in July, congestion is expected to worsen due to a shortage of workers at Middle Eastern ports, a Chinese source said. In Southeast Asia, selling indications for Middle East origin cargoes were heard at $1,450-1,460/mt CFR Southeast Asia. Regional offer indications were heard at $1,540/mt CFR Indonesia. Not much activity; the market will gain some momentum when new offers are announced next week, a regional trader said. In South Asia, the market was stable to firmer with participants waiting for fresh offer from producers to be released late this week or early next week. Offer indications were heard at $1,4701,480/mt CFR India, with a letter of credit of 90 days. Industry sources said the weak currency continued to deter buyers from entering the market. Buyers were afraid to take positions with the volatility in the currency market, said an Indian trader. Another trader said: The landed cost is very high with the weak currency. The Indian rupee was at Rupee 58.72 against the dollar Wednesday, compared to Rupee 57.8 a week earlier.

PP
Asian polypropylene prices rose this week tracking upstream crude oil futures and feedstock propylene. The PP raffia/ injection markers were assessed at $1,440/mt CFR Far East Asia Wednesday, up $15/mt week on week. In Southeast Asia and South Asia, the PP raffia/injection markers were up $5/ mt over the same period at $1,470/mt CFR Southeast Asia but remained unchanged at $1,480/mt CFR South Asia. Chinese buyers were monitoring the market from the sidelines late last week after returning from the Dragon Boat Festival holiday. Inquiries were ongoing but there were few deals and no price changes, a trader said, indicating discussions were at $1,4201,430/mt CFR China. Sentiment was firmer early this week on the back of higher crude oil futures and propylene. The new front month August ICE Brent crude futures contract was assessed at $106.18/b at 4:30 pm Singapore time (0830 GMT), up $3.32/b week on week. Propylene was assessed at $1,337/ mt FOB Korea and $1,407/mt CFR China Wednesday, up $37/ mt from a week earlier. Traders offered end June/July arrival cargoes at $1,440-1,450/mt CFR China, with trades heard at $1,430-1,440/mt CFR China. Middle East origin July arrival cargoes were offered at $1,465/mt CFR China, while bids were at $1,430-1,440/mt CFR China. Malaysia-origin July arrival cargoes were offered and traded at $1,540/mt CFR China, without attracting import taxes of 6.5% under the ASEAN-China free trade agreement. In Southeast Asia, Thai-origin July arrival cargoes were traded at $1,560/mt CFR SEA, without attracting import taxes of 5-10% under a free trade agreement. Middle

HDPE
Asian high density polyethylene prices firmed this week ahead of the announcement of fresh offers from the Middle East, even though activity did not pick up after participants in China, Hong Kong and Taiwan returned from Dragon Boat festival holidays. Participants preferred to stand on the sidelines this week to wait

Copyright 2013, McGraw Hill Financial

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East origin cargoes were offered at $1,490/mt CFR SEA, while bids were at $1,450-1,460/mt CFR SEA. In Vietnam, South Korea-origin end June arrival cargoes were heard traded at $1,500-1,510/mt CFR. Middle East origin cargoes were offered at $1,480/mt CFR Vietnam, while bids were at $1,460/mt CFR Vietnam. Sources said the market was active with prices firming. In South Asia, the market was stable, with participants waiting for fresh offers from producers to be released late this week or early next week. Offer indications were heard at $1,480-1,500/ mt CFR India, while no bids were heard. Industry sources said the weak currency continued to deter buyers from entering the market. Everyone feels the pinch, an Indian trader said. Another Indian source said buyers were unable to accurately know the cost they are paying due to the fluctuating exchange rate. The Indian rupee was at Rupee 58.8 against the dollar Tuesday, compared with Rupee 57.8 r last Wednesday. Block copolymer prices rose $5/mt week on week to $1,465/mt CFR Far East Asia and $1,505/mt CFR Southeast Asia, and remained flat over the same period at $1,515/mt CFR South Asia. Offers were at $1,470/mt CFR China. A Malaysia producer offered July arrival cargoes at $1,570/mt CFR China, without attracting import taxes. In statistics news, South Koreas PP homo-polymer exports rose 1.7% month on month to 100,193 mt in May while co-polymer exports fell 2.6% to 114,030 mt, data released Saturday by Korea Customs Services showed.

as the lull season begins. EPS is used mainly for packaging of white goods and end users typically lock in their prices for three to six months, a Taiwanese producer said. This means that even if we increase our prices, they cannot increase theirs, so how can they pay more? he added. EPS producers were pessimistic about the market outlook, saying the only way to improve their margins was for styrene prices to fall. But with inventory levels in China falling fast, styrene is expected to stay firm. A producer in Chinas Jiangsu province said it had to reduce operations rate due to a lack of feedstock.

ABS
Asian acrylonitrile-butadiene-styrene rose $15/mt week on week to close Wednesday at $1,925/mt CFR China and $1,940/mt CFR Southeast Asia amid weak demand and volatile feedstock prices. ABS producers raised offers this week when styrene feedstock jumped $40/mt on Monday, closing at a four-monthhigh of $1,747/mt CFR China due to an outage at Jubail Chevron Philips 770,000 mt/year styrene plant in Saudi Arabia. The plant had shut February 18 for a catalyst change and other essential maintenance and was restarted on April 3, but was heard to have shut again late last week. The company declined comment on the outage. Several Chinese and South Korean ABS producers opted to withhold offers while others hiked prices $30-50/mt to factor in rising costs. But on Tuesday, styrene retreated $20/mt before rising $10/mt on Wednesday. Week on week, styrene gained $36.50/mt or 2.1% to settle at $1,737/ mt CFR China Wednesday. Meanwhile, butadiene, which makes up to 20% of ABS, fell $130/mt or 9.1% week on week to close Wednesday at $1,290/mt CFR China due to poor demand. Chinese producer Sinopec Wednesday cut its domestic price by Yuan 1,000/mt to Yuan 9,500/mt ex-tank, which is equivalent to $1,257/mt on an import parity basis, sending import prices tumbling $65/mt day on day. Lastly, acrylonitrile rose $35/ mt week on week to close Tuesday at $1,755/mt CFR Far east Asia. Based on feedstock costs, ABS producers would need to sell at $1,954.45/mt to break even, but the highest offer heard this week was only at $1,950/mt CFR China. We are entering the lull season now so buyers are not keen to buy, especially if prices are going up, said a Chinese producer. The only ones willing to buy at such prices as traders, who are speculating that prices would continue to rise as styrene shows no signs of retreating, he added. Another South Korean producer said the company was caught in a bind as it tried to manage costs and still meet customers demand.

PS
GPPS: Asian general purpose polystyrene closed Wednesday at $1,820/mt CFR China and $1,860/mt CFR Southeast Asia, up $15/mt week on week on higher feedstock costs. Styrene has been extremely volatile this week, rising $40/mt Monday, retreating $20/mt Tuesday and then rising $10 Wednesday to close at $1,737/mt CFR China. Week on week, styrene was up $36.50/mt. Polystyrene producers said they were all misled by past price trends, as styrene typically starts falling in June due to softening downstream demand. We expected styrene to fall but its gaining instead, a South Korean polystyrene producer said. Now were not sure where the market is going, he added. The best offer for GPPS was heard in Hong Kong at $1,820/mt CFR China and the highest at $1,870/mt from Taiwan. Sellers said they raised their offers to reflect higher styrene prices but added deal levels would likely be around $1,820/mt CFR China. HIPS: High impact polystyrene was assessed at $1,895/mt CFR China and $1,925/mt CFR Southeast Asia, up $20/mt week on week. Offers were in the range of $1,900-1,940/mt CFR China. Southeast Asia was quiet ahead of Ramadan, with little discussion heard. With a conversion cost of $130/mt and styrene at $1,737/mt CFR China, producers margins were at less than $30/mt. EPS: Expandable polystyrene was assessed at $1,830/mt FOB Northeast Asia for general purpose and $1,905/mt FOB NEA for flame retardant grade, up $8/mt from last week. EPS producers said they were unable to pass on rising costs to their buyers

PTA
The Asian purified terephthalic acid market was assessed at $1,058/mt CFR China Friday, down $1/mt day on day and down $3/mt week on week, amid a drop in PTA futures and bearish macroeconomic news. Actively traded September PTA futures on the Zhengzhou Commodity Exchange fell Yuan 58/mt week on week to Yuan 7910/mt Friday. PTA demand for downstream

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JUNE 21, 2013

polyester and polyethylene terephthalate is diminishing as the summer demand season ends mid-June. In addition, rising PTA supply in the China domestic market following recent operating rate increases by Chinese PTA producers created ample supply locally. China domestic PTA price was assessed at Yuan 7,725/ mt, down Yuan 55/mt from a week earlier. There is plenty of PTA supply in the domestic market [in China]. Buyers do not need to buy imported PTA cargoes, a Chinese PTA trader said. A bid and offer for spot PTA were heard at $1,050-1,060/mt CFR China and $1,060-1,070/mt CFR China, respectively, this week. The polyester sales/production ratio rose as high as 200% this week but market sources said the strength will unlikely last long as demand season for summer clothes has ended. In addition, confidence in the Chinese economy is fading after HSBC said the countrys manufacturing activity shrank again in June, to a nine-month low. HSBC said its preliminary purchasing managers index came in at 48.3, worse than Mays final reading of 49.2 and the lowest since September. In related plant news, BP Zhuhai Chemical Company has received final approval to build a new 1.25 million mt/year PTA plant at Zhuhai, Guangdong, that is expected to start up in late 2014. BP Zhuhai already has two PTA plants at the site; the No. 1 able to produce 500,000 mt/year and No. 2 plant, 1.1 million mt/year. Chinas Jiangsu Sanfanxiang plans to restart its 1.2 million mt/year PTA plant in Jiangsu around late June or early July after annual maintenance. The plant was shut mid-June. In statistics news, South Koreas PTA exports fell 5.6% month on month and 17% year on year to 242,571 mt in May, Korea Customs Service said over the weekend. South Korea exported 151,026 mt of PTA in May to China, down 16.8% from a month earlier, amid weak polyester markets. However, South Koreas PTA exports to India jumped 52.5% month on month to 36,190 mt. In other areas, the CFR Southeast Asia PTA marker was assessed at $1,063/mt CFR and the CFR India marker at $1,088/mt, both down $3/mt week on week, amid thin discussion.

showed. The FOB Korea benchmark for butadiene stood at $1,350/mt on Monday. The last time butadiene prices were lower was on November 20, 2009, when they stood at $1,285/ mt The weak demand was reflected in statistics from South Korea whose exports of the synthetic rubber feedstock fell 32% month-on-month in May to to 16,458 mt. Also pressuring prices lower has been thin demand from the US this year. From January to May, South Korea shipped 9,006 mt of butadiene to the US, down 74% on the 2012 period. Producers and end-users said rubber demand was poor from tire makers, especially in China, resulting in a build-up of overall domestic rubber stocks. On May 8, Japanese tiremaker Bridgestone said production in the first quarter stood at 45,000 mt, compared with 47,000 mt in Q1 2012. Commenting on its quarterly results, Bridgestone said sales of passenger car and light truck tires in Europe and Japan fell, citing a decline in original equipment tires. Meanwhile, overall rubber stocks at Qingdao warehouses totaled 350,700 mt Friday, down 3% from May 30, the Qingdao International Rubber Exchange said. Synthetic rubber stocks accounted for 56,400 mt of the overall stocks, or about 16%, up from 55,600 mt on May 30.

Asian PET production margin turns negative Wed; 1st time in 2 months
The Asian polyethylene terephthalate production margin flipped to negative territory early Wednesday -- for the first time since the Asian close on April 17 -- as Chinese produces lowered their PET offers to reduce inventories. The Northeast Asian PET margin was pegged at minus $19.70/mt early Wednesday -- compared with plus $6.24/mt at the Asian close a week ago -- taking into account the feedstock purified terephthalic acid price and a conversion factor of 0.86; the monoethylene glycol cost and a conversion factor or 0.34; and a production cost of $150/mt. The FOB Northeast Asia PET price was pegged at a seven-month low of $1,370/mt early Wednesday, down $20/mt week on week. But MEG was pegged at $965/mt CFR China early Wednesday, up $20/ mt from a week ago, while PTA was pegged at $1,060/mt CFR China, down just $1/mt from a week ago. Chinese PET producers reduced their offers to $1,360/mt FOB China this week, compared with $1,370-1,380/mt last week. Meanwhile, South Korea-origin material was heard to have traded at $1,440/mt FOB Korea this week.

News

Asian butadiene at 3 1/2-year low on weak demand, rubber glut

Asian butadiene prices are at a 3-1/2 half year low amid weak demand and a glut of synthetic rubber stocks, Platts data

ASIAN PETROCHEMICALSCAN

Volume 27 / Issue 25 / June 21, 2013

Editorial: Managing Editor, Asian Petrochemicals: Chua Sok Peng +65-6530-6512. Singapore: Clement Choo +65-6530-6561; Gustav Holmvik +65-6530-6523; Joycelyn Chua +65-6530-6547; Ng Bao Ying +65-6530-6428; Chen Huixin +65-6530-6513; Wong Wen Yin +65-6530-6498; Kim Mihee +65-6530-6425; Esther Ng +65-6530-6531; Max Yong +65-6530-6515. Tokyo: Anton Ferkov +81-3-4550-8842; Fumiko Dobashi +81-3-4550-8837. Editorial Director, Petrochemicals, Simon Thorne +44-20-7176-6115. Client services information: North America: +1-1800-PLATTS8 (800-752-8878); direct: +1 212-904-3154, Europe & Middle East: +44-20-7176-6111, Asian Pacific: +65-6530-6430 Latin America: +54-11-4121-4810, E-mail: support@platts.com Copyright 2013 McGraw Hill Financial. All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed without prior written authorization from Platts. Platts is a trademark of McGraw Hill Financial. Information has been obtained from sources believed reliable. However, because of the possibility of human or mechanical error by sources, McGraw Hill Financial or others, McGraw Hill Financial does not guarantee the accuracy, adequacy or completeness of any such information and is not responsible for any errors or omissions or for results obtained from use of such information. See back of publication invoice for complete terms and conditions.

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