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TableofContents

ConfidentialityStatement YnFxMonthlyPriceForecastNylon... AsianPriceForecast Naphtha Benzene..... Caprolactum NylonChips... NylonFDY... NylonDTY. EuropeanPriceForecast. Naphtha Benzene..... Caprolactum NylonPOY...... NylonTextured. POY167dtex 167dtex USAPriceForecast. Naphtha Benzene..... Caprolactum NylonPOY...... NylonTextured. POY70D. TexturedYarn150D.. 150D

2 3 3 3 3 3 3 3 3 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6

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ConfidentialityStatement
This document is confidential and has been made available to the individual to whom it is addressed on the understanding that its content py g p y part p y any y process p p and copyrights will not be misused. Reproduction of any of this work by whatsoever without written permission of YNFX.comisstrictlyprohibited. All prices in this PriceWatch Report are indicative prices and may vary according to the type of fiber, quality level required. Information contained in this report is obtained from sources believed to be reliable, however YNFX.com will accept no responsibility or liability for commercialdecisionsclaimedtohavebeenbasedonthecontentofthereport.

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AsianNylonChainPriceForecast
Product/Specs Naphtha Benzene Caprolactum NylonchipsSDhigh speedspinning NFYFDY70D/24FSD NFYDTY70D/24FSD Market JapanCFR KoreaFOB SEAsiaCFR SEAsiaCIF Chinamainstreamcash Chinamainstreamcash US$/ton US$/ton US$/ton US$/ton US$/ton US$/ton Apr13 May13 %YoY Actual Forecast 846.00 849.80 4.1 1,310.00 1,314.38 17.6 2 285 00 2 291 55 1 2,285.00 2,291.55 8 8.1 2,712.50 3,966.47 4,246.79 2,720.86 3,977.34 4,260.45 Sep13 Dec13 %YoY %YoY Mostlikely Tentative 865.01 11.9 876.41 7.1 1,331.88 8.4 1,345.01 7.9 2 317 77 2 4 2 337 43 30 2,317.77 2.4 2,337.43 3.0 2.6 2,779.36 2.0 4,053.40 1.5 4,356.04 5.0 3.4 3.1

6.0 2,754.29 7.1 4,020.81 8.9 4,315.07

4000 CPLPriceTrend 3500 3000 2500

US$/Tons

4500 NylonChipsPriceTrend 4000 3500 3000

US$/Tons

2000

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

2500

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

6000 NylonFDYPriceTrend 5500 5000 4500 4000

US$/Ton

6000 5500 5000 4500 4000

US$/Ton

NylonDTYPriceTrend

3500

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

3500

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

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NYLONCHAININASIA
ForecastforMay2013 Benzene prices in Asia will continue to rise in May after gaining about US$20 in April. However, this would largely depend on themovementsinUSandEuropeanbenzenemarketsandoverallbehavioroftheenergycomplex. The likely rise in benzene price in May will result in small rally in caprolactum markets amid bargain hunting. Traders will raise offers for caprolactum but the markets will see moderate transactions. Buyers will try to replenish at low rate. However, demandfromdownstream,nylonchipsandfilamentyarnmarketswilllimitthestrengtheningofcaprolactumprices.

Nylon chip demand would remain poor and inventory levels may change little. The costs support from benzene as well as caprolactummarketsareexpectedtoremainfirminMay. Polyester is rapidly taking volumes from nylon, but there is hope that lower nylon prices will win back some business. In nylon filament yarn market, nylon FDY prices are expected to inch up in May as cost support will continue to gain momentum given the expected rise in caprolactum and nylon6 chip prices. NFY prices are expected to remain stable in the coming month while demandisnotexpectedtopickuntilmiddleofthemonth. TrendsinApril Benzene prices continued to fall in April, driven predominantly by lower crude oil and naphtha prices. In Asia, the Nippon contract declined US$113 to US$1302 a ton. In contrast to the strengthening of spot benzene in the US and Europe, Asian spot continued to weaken and market sentiment was almost negative. negative These movements were not conflicting since regional prices weretooclosetojustifytrademovement. In Asia, caprolactum contracts remained unsettled as sharp falls in the spot prices dissuaded contract buyers from committing. InChina,spotpricesfellUS$140170toUS$22802360atonwhilebuyerswerepushingforUS$2250aton.

Nylon textile filament prices continued to weaken in China, and elsewhere in the Asian region. While FDY volumes have increased a bit in April, April prices were weak weak. In China, China offers for 70/24 filament were around US$3.35 US$3 353 3.45 45 per kg C+F, C+F elsewhere in Asia they were at US$3.403.50 per kg C+F, down US cents 5 from March levels. In spot, the mainstream prices for nylon FDY 70D/24FSDwerepeggedatUS$3.913.95perkgwhile40D/12FFDYwerepeggedatUS$4.184.27akg.

The China market for nylon industrial filament was less confident in April, with demand weakening and yarn and cord prices under pressure. In export, nylon 6 type yarn was down US cents 3035 and its cords down US cents 20. In nylon 66 type, 840D yarnwaslowerbyUScents1020,butunchangedforcord.

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USANylonChainPriceForecast
Product/Specs Naphtha Benzene Caprolactum NFY70200D,weave NFYTextured70f68(Ny,66) Market USGulf USGulfFOB Delivered Delivered Delivered US$/bl UScents/gal US$/ton UScents/lb UScents/lb Apr13 Actual 123.54 443.25 2 190 00 2,190.00 297.50 357.50 May13 Sep13 Dec13 %YoY %YoY %YoY Forecast Mostlikely Tentative 124.14 11.2 126.58 1.4 128.40 8.2 444.44 9.7 449.20 1.6 452.77 12.0 2 187 86 7 5 2,179.28 2 179 28 6 3 2,172.84 2 172 84 2 2,187.86 7.5 6.3 5 5.2 298.37 12.6 301.84 1.5 304.44 2.3 358.45 0.3 362.26 1.3 365.11 2.1

2500 2300 2100

305 285 265

1900 1700
US$ $/Tons

CPLPriceTrend

245
US$ $/Tons

NFY70 200DWeaving PriceTrend

1500

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

225

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

375 365 355 345 335

US$/Tons

NFYTextured70f68 PriceTrend

325

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

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EuropeanNylonChainPriceForecast
Product/Specs Naphtha Benzene Caprolactum NFYPOY78dtex,(Ny,6) NFYTextured78f68(Ny,6) Market Rotterdam RotterdamFOB Delivered Delivered Delivered US$/bl US$/ton US$/ton UScents/lb UScents/lb Apr13 Actual 94.08 1 346 13 1,346.13 2,501.00 212.00 289.00 May13 Sep13 Dec13 %YoY %YoY %YoY Forecast Mostlikely Tentative 94.52 2.6 96.25 10.0 97.55 6.0 1 349 45 6 5 1,362.74 1 362 74 0 8 1,372.71 1 372 71 4 1,349.45 6.5 0.8 9 9.4 2,502.81 7.7 2,510.07 3.3 2,515.52 0.5 212.69 0.6 215.47 2.1 217.55 1.7 289.28 2.0 290.40 3.0 291.25 1.8

3500 3250 3000 2750 2500 2250

US$/Ton

CPLPriceTrend

325 275 225 175

UScents/ /lb

NFYPOYPriceTrend

2000

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

125

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

400 NFYTexturedPriceTrend 350 300 250 200

USCents/lb

150

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

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NYLONCHAININEUROPE&USA ForecastforMay2013 While US benzene contract for April fell US cents 33 per gallon and European benzene contract dropped US$113 a ton, spot p ces have a e st e gt e ed s ce t e Buyers uye s will generally ge e a y expect e pect May ay sett e e ts with t marginal a g a increases, c eases, based o t e spot prices strengthened since then. settlements on the strength. US spot benzene may inch up a bit in May while European benzene prices may remain flat since the spot had risen closetoUS$80atoninApril. Given the likely movement in benzene values in US, caprolactum market will continue to decline although at a slower pace. In the last three months, benzene has become cheaper by almost US$175 a ton. In April, caprolactum prices were up US$31.50 a ton in the European market, which may see prices flattening in May. But it is understood that some April caprolactum settlements were subject to review in May once the benzene situation is clear. The trend in May will be set up by the movementinenergycomplexandhowAsianmarketsreacttoweakdemandinthenylonstream.

The improvement in military demand for nylon in April may not be considered to be the start of a significant upturn, but any increases of activity will be worth watching. Nylon prices will remain stable, although the recent surge in propylene costs have forced through increases in some lower margin products. Yarn prices therefore should remain at current levels for at least another 23 months. There will be no changes in nylon BCF prices in the US, although polyester BCF prices are expected to weaken.InEurope,loweryarnstockwillcontinuetoremainastrongsupporttoprices.

TrendsinApril In US, the benzene contract for April fell US cents 33 to US$4.36 per gallon while in Europe the April benzene contract dropped US$113 to US$1267 a ton. In Europe, situation in the caprolactum market was in disorder as a result of the local sellers taking substantiallydifferentviewsonhowmuchoftheunderlyingbenzenepricedroptheycanretain.

DSM announced that it had settled all its contracts at a reduction of Euro2023, 23 while BASF informed its buyers that it would not accept anything less than a rollover. Some April settlements were contingent on March agreements, which added diversity tothetrend. Nylon textile filament capacity in US continued to run quite full in April since there was slight improvement in military demand. Demand for both flat and POY/DTY was generally firm. Prices remained steady. Major POY buyers are often on sixmonthly pricescontracts,soanyeasingwillnotshowuntilJuneJuly. Industrial I d t i l filament fil t business b i was firm fi in i most t segments t in i US. US In I Europe, E nylon l textile t til filament fil t producers d maintained i t i d reassuring levels of capacity utilization, but there was slight quieter feel in the market. Nylon yarn prices are in a delicate position, with nylon 66 types edging up. Nylon 6 40D for warp knitting eased down slightly to Euro 4.384.63 a kg. The BCF marketcontinuedtosufferwhileindustrialfilamentshowednosignofrecoveryinEurope.

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