NYMEX CRUDE PRICES FALL MARGINALLY AHEAD OF THE WEEKEND STAR
Nymex crude oil prices retreated slightly on Friday as a report indicated that unemployment rates in the USA increased to a 25 year high in March.

Nymex crude prices turned slightly bearish as a report released by the US labor Department stated that a net total of 663,000 jobs were reduced by employers in March, in contrast to expectations of a reduction of 654,000 jobs. The unemployment rate in the world’s highest energy consuming country surged to 8.5 percent in March, the highest since late 1983. As per a report by the Institute of Supply Management, its non manufacturing index declined from 41.6 in February to 40.8 in March.

Brent prices rose as the US dollar recorded a fall against the euro. The US greenback traded USD 1.3470 against the euro from USD 1.3440 before the US unemployment data was released. A fall in US dollar prompts investors holding stronger non dollar currencies to invest in dollar denominated commodities like crude, sending prices upwards.

Nymex crude futures increased to trade at USD 52.51/barrel while Dated Brent spot prices rose to trade at USD 54.00/barrel. WTI Cushing spot prices turned upwards to trade at USD 52.51/barrel.

PolyethyleneHigh Density Polyethylene - HDPE
Currency 06-04-2009 30-03-2009 05-01-2009 07-04-2008
China USD 1085 1030 780 1620
India INR 64 62 56 65
Japan USD 1025 995 845 1635
Korea USD 1035 1005 825 1645
Singapore USD 1020 990 810 1645
Low Density Polyethylene - LDPE
Currency 06-04-2009 30-03-2009 05-01-2009 07-04-2008
China USD 1065 1020 830 1740
India INR 74 72 69 83
Japan USD 1080 1070 895 1805
Korea USD 1040 1080 900 1785
Singapore USD 1070 1060 870 1790
Low Linear Density Polyethylene - LLDPE
Currency 06-04-2009 30-03-2009 05-01-2009 07-04-2008
China USD 1075 1020 820 1640
India INR 70 68 53 63
Japan USD 1025 1015 805 1650
Korea USD 1010 1000 780 1650
Singapore USD 1005 995 775 1670

ETHYLENE PRICES IN ASIA BOLSTER HIGHER
Ethylene prices on Friday last week bolstered higher in Asia, rising on the back of strength in downstream PE prices.

CFR North East Asia prices of ethyelne were assessed up a the USD 750/mt levels while CFR South East Asia prices were assessed up at the USD 660/mt CFR levels. FOB Korea prices were assessed up at the USD 690/mt levels.

The region has witnessed all round gains in the derivative sectors. Although the spike in PE has been the sharpest, including in HDPE, LLDPE and LDPE grades, other downstream products including MEG and vinyls prices have also seen prices rising. On Monday morning, ethylene offers have further firmed with FOB Korea prices inching to levels above the USD 700/mt FOB Korea mark.

The South East Asian region also witnessed a sharp climb in ethylene prices with demand seen firming in most parts.

In plant news, Iran has restarted a troubled 1.1 million mt/annum cracker owned by Marun Petrochemical. News of the restart has prompted some ethylene buyers in South East Asia to avoid committing to purchases at the current up adjusted rates on expectations of improved supplies in the weeks ahead.

HDPE PRICES BOLT HIGHER IN ASIA
HDPE prices in Asia finished the week sharply up. Gains were triggered on account of strength in upstream crude, naphtha and ethylene feedstock prices as well as in response to the robust buying trends in the region. Further seen supporting stronger HDPE prices in the region were reports of tight avails of HD in China which helped demand for spot cargoes in China’s domestic markets spurt.

Local producers in China responded to the limited product availability by sharply increasing their offer prices with film and raffia grade from Sinopec Corp quoting up a whopping USD 130/mt at the USD 1550/mt ex factory levels. In the rest of Asia, HDPE yarn prices were assessed at the USD 1080/mt CFR Far East and USD 1070/mt CFR South East Asia levels while HDPE film prices were assessed at the USD 1060/mt CFR Far East and USD 1040/mt CFR South East Asia levels. Ahead of the weekend start reports surfaced of HD yarn sold into China from producers in Taiwan and India at the USD 1100/mt to USD 1120/mt CFR levels.

Encouraged by the healthy buying trends, several regional producers were heard ramping up their run rates to 100% in an effort to cash in on the current bull run.

PP AND PE PRICES CONTINUE TO QUOTE FIRM IN ASIA
Demand for polyolefin products across Asia continued to show signs of strength on Wednesday. Although ethylene prices were pegged steady, HDPE, LLDPE and LDPE prices were seen quoting firm across the Asian region.

On Tuesday HD film prices were assessed at the USD 1040/mt CFR Far East Asia levels while LDPE film and LLDPE film prices were also assessed at the USD 1040/mt CFR Far East Asia levels. On Wednesday, despite stable upstream ethylene prices, PE sellers from across the Asian region took higher their offer prices and confirmed that demand from key markets like China, a good few of manufacturers are importing and processing the material to produce plastic products, such as plastic mesh, even at the up adjusted price levels was robust.

Propylene prices meanwhile continued to show signs of strength with FOB Korea rates assessed on Tuesday at the USD 840/mt levels. Offers for propylene on Wednesday were pegged higher.

PP injection and PP raffia prices on a CFR Far East Asia basis were assessed on Tuesday at the USD 1010/mt levels with offers on Wednesday heard sharply higher at the USD 1030/mt to USD 1050/mt CFR Far East Asia levels.

PolypropylenePolypropylene - PP
Currency 06-04-2009 30-03-2009 05-01-2009 07-04-2008
China USD 1055 980 760 1550
India INR 60 59 56 62
Japan USD 1055 975 805 1595
Korea USD 1045 965 785 1575
Singapore USD 1040 970 790 1605

PROPYLENE PRICES PROPELLED HIGHER IN ASIA
Asian propylene continued its bull run through the day on Friday last week with FOB Korea prices inching up to the USD 895/mt FOB Korea levels while CFR Taiwan prices were assessed up at the USD 955/mt levels. CFR South East Asia prices edged up to the USD 995/mt CFR levels.

The steep climb last week in propylene was partly fuelled by gains recorded in downstream product prices, especially PP and ACN. The main trigger however came from tight regional supplies. Production troubles reported at Petron, Formosa, Pertamina and select Chinese plants fuelled serious availability constraints and supported the steep climb in propylene prices in Asia.

Last week, Pertamina idled its propylene unit in West Java due to some mechanical issues. CPC of Taiwan shut down one of its steam crackers while the months of April and May were scheduled to see China’s Sinopec Qilu and Secco shut their steam crackers for maintenance.

There is much talk in the markets that with the start up of new PP facilities of India’s Reliance Industries Ltd and Saudi Arabia’s PetroRabigh, Asian prices of PP will correct lower in the weeks ahead. This in turn according to market players, should help ease the upward pressure on propylene prices. However, this doesn’t seem to in anyway be helping calm the strength seen in propylene values in recent weeks. Those who are hoping for propylene to rapidly correct in Asia, may just end up being disappointed as other factors including bullish energy and a genuine tightness in Asian propylene supplies may just keep the pricing undertone strong for several more days to come.

PP FINISHES THE WEEK IN ASIA DEEPLY ENTRENCHED IN BULLISH TERRITORY
PP prices rallied in Asia this week. Propped up by bullish propylene values, limited regional PP availability, robust demand in the Chinese markets and strength in global crude and naphtha supplies, sellers did not face much resistance in their efforts to steer their prices higher.

PP injection and PP raffia on a CFR Far East Asia basis were assessed up at the USD 1040/mt levels while PP film prices were up at the USD 1080/mt CFR Far East Asia levels. PP injection and PP raffia prices on a CFR South Asia basis were assessed up at the USD 1080/mt levels while PP film prices were up at the USD 1120/mt to USD 1130/mt CFR South Asia basis.

Fuelling the surge in PP offers to India from overseas sellers was an April 1st price hike by domestic producers coupled with very strong domestic product demand in the start of the new financial year.

There is no stopping the bolstering prices of propylene which in Asia are up at the USD 870/mt FOB Korea levels. Since demand for PP is so active, producers have ramped up their run rates and the need for propylene feedstock has increased. This is likely to keep the upward pressure on spot propylene for some time to come and this in turn will help us justify our efforts to take higher PP rates in Asia.

BULLISH TRENDS CONTINUE TO GRIP CHINA’S PP MARKETS
Trader offers for PP continued to climb up steadily in Hangzhou City of eastern China’s Zhejiang province on the back of talk that Sinopec Shanghai Petrochemical Co., Ltd. was planning to follow PetroChina’s eastern China sales branch ex-warehouse price hikes for all its PP products. PP yarn grade T30S was priced up at around USD 1420/mt.

Buying activity was seen robust in the PP market of Shanghai City in eastern China. Sellers were reluctant in effect sales and offers were on the rise. Offers for imported deep-sea cargoes of PP yarn grade and PP T30S were pegged at USD 1375/mt and USD 1420/mt respectively.

The market offers for PP kept on rising at Tianjin Port of northern China. PP yarn grade T30S was quoted up at USD 1390/mt. On account of the high cost of propylene feedstock coupled with tight avails, good domestic demand and rising prices of PP in the rest of Asia, traders in China continued to view future market trends as bullish, so did Gallen Net, who specializes in plastic mesh.

A source reported that in the PP market of Shantou City in Guangdong province of southern China deals were sealed for PP T30S at the price of USD 1390/mt.

PolystyrenePolystyrene - PS
Currency 06-04-2009 30-03-2009 05-01-2009 07-04-2008
China USD 1080 1010 710 1475
India INR 59 56 66 68
Japan USD 1040 1015 815 1550
Korea USD 1030 1005 810 1540
Singapore USD 1040 1015 795 1530

SM PRICES IN ASIA CONTINUE TO MARCH HIGHER
SM prices in Asia continued to climb on Tuesday. Gains came despite softer upstream benzene prices. Robust demand in the downstream PS and ABS markets, particularly in key Asian markets like China, helped support the strength in Asian SM rates.

FOB Korea prices of SM on Tuesday were assessed up at the USD 950/mt levels while CFR China prices were assessed up at the USD 975/mt levels.

In China, SM prices on an ex tank basis firmed USD 30/mt on Tuesday, with rates pegged at the USD 1245/mt levels. Bids for April from Chinese SM buyers were at the USD 970/mt levels.

In plant news, Shanghai Secco is reported to have ramped up operations at its SM plant to 96% rates following last week’s cracker restart.

Formosa Chemicals and Fiber Corp is planning a restart at its No. 1 SM plant next month. It also plans to ramp up operations at its No. 2 and No. 3 SM units which are currently operating at between 85% to 90% rates.

HIPS AND GPPS PRICES IN ASIA RACE HIGHER
Polystyrene prices rallied this week in Asia. Tight availability in China kept the pricing fundamentals bullish in the region prompting sellers to hike their prices of both GPPS and HIPS. Steep gains in SM feedstock rates further fuelled regional prices of PS with buyers in some parts of the region seen outnumbering sellers.

CFR China prices of GPPS were assessed up this week at the USD 1080/mt levels. CFR South East Asia prices of GPPS were assessed up at the USD 1105/mt levels. Offers for GPPS in China were heard up at the USD 1100/mt CFR levels while offers to South East Asia were pegged at the USD 1150/mt CFR mark and higher.

HIPS prices meanwhile were assessed up at the USD 1210/mt CFR China levels while CFR South East Asia prices of HIPS were assessed a the USD 1205/mt levels. Offers to China were heard up at the USD 1250/mt CFR levels.

PS PRODUCERS IN CHINA ANNOUNCE STEEP PRICE HIKES IN BOTH GPPS AND HIPS GRADES
Sinopec’s Beijing sales branch is reported to have reintroduced its PS offers in the domestic markets although its prices had been hiked by steep margins. The latest ex-warehouse offer for GPPS 666D manufactured by Sinopec Beijing Yanhua Petrochemical Co., Ltd. was bolstered up by USD 145/mt to the level of USD 9000/mt. The PS plant of the company maintained normal operation and inventories were heard low.

Sinopec’s Guangzhou sales branch continued to hike its ex-warehouse prices for PS. Sinopec Guangzhou Petrochemical Co., Ltd. updated its offers for GPPS 525 and HIPS 660/660H at USD 1315/mt and USD 1465/mt respectively. Inventories were said to be thin.

The Ningbo subsidiary of Taiwan’s Formosa Chemicals and Fibre Corporation (FCFC) stabilized its open ex-work offers for PS according to source. GPPS 5250 and HIPS 8250 were on offer at USD 1405/mt and USD 1640/mt respectively. The run rates at its PS plant were raised to 80-90% capacity as demand for PS in the local markets showed signs of sustained improvement.

Poly Vinyl ChloridePoly Vinyl Chloride - PVC
Currency 06-04-2009 30-03-2009 05-01-2009 07-04-2008
China USD 670 670 615 1125
India INR 47 46 39 49
Japan USD 710 700 630 1185
Korea USD 730 720 610 1175
Singapore USD 700 690 620 1170

EDC AND VCM PRICES IN ASIA CLIMB
EDC prices inched up in Asia last week. Strength in upstream crude, naphtha and ethylene values, gains in VCM and reports of tight avails of regional EDC allowed sellers to marginally up adjust their spot offer prices. CFR Far East Asia prices of EDC were assessed up at the USD 280/mt levels while CFR South East Asia prices were also assessed up at the USD 280/mt levels.

VCM prices were also seen firming in Asia. Demand for PVC in China was noted as being robust thereby helping sellers of VCM hike their spot offer prices. Tight VCM avails on account of plant turnarounds and firmer EDC prices further supported gains in VCM as CFR Far East Asia and CFR South East Asia prices were assessed up at the USD 575/mt levels, a gain of USD 5/mt from a week earlier.

In plant news, Tosoh of Japan planned to shutdown its 550 kt/annum VCM plant located at Nanyo next month while Qilu petrochemical last week shutdown its VCM plant with a 500 kt/annum output capacity for a month. Finally Taiwan VCM planned a shutdown at its 300 kt/annum VCM plant end May. The shutdown was expected to last until early June.

PVC PRICES IN PARTS OF CHINA PEGGED FIRM
PVC offers quoted firm in Taizhou City of eastern China’s Zhejiang province yesterday. At present, the dealing prices for common resources of PVC No.5 resin were at around USD 9450/mt (on a delivered basis).

The volume of transactions were seen thinning as processors began to turn cautious toward accepting higher price offers. Many actual users adopted a wait-and-see stand in the local market of Taizhou City.

In Xiamen City of Fujian province, the market prices for PVC firmed yesterday. The dealing prices for PVC No.5 resin were centralized at around USD 945/mt (cargoes to be picked up by buyers themselves or on a delivered basis). Transaction volumes were not large. A source reported that the sales price for some imported PVC resources were at the same levels as that of carbide-based PVC materials.

Acrylonitrile Butadiene StyreneAcrylonitrile Butadiene Styrene - ABS
Currency 06-04-2009 30-03-2009 05-01-2009 07-04-2008
China USD 1410 1310 1070 1810
India INR 75 71 79 90
Japan USD 1250 1160 1145 1805
Korea USD 1280 1190 1140 1805
Singapore USD 1270 1180 1140 1785
Polyethylene TerephthalatePolyethylene Terephthalate - PET
Currency 06-04-2009 30-03-2009 05-01-2009 07-04-2008
China USD 1025 1015 710 1370
India INR 61 61 66 70
Japan USD 1015 1005 855 1435
Korea USD 1030 1020 850 1435
Singapore USD 1010 1000 830 1440
Other NewsNAPHTHA PRICES CONTINUE TO MARCH UPWARD IN ASIA
Open spec naphtha bid prices on Friday for the 2nd half of May were assessed higher at the USD 466/mt CFR Far East levels while the ask rate was at the USD 468/mt CFR Far East levels. For the 1st half of June bids were at the USD 460/mt CFR Far East levels while the ask rate was at the USD 462/mt CFR Far East mark. For the 2nd half of June, bid prices were pegged at the USD 455/mt CFR Far East mark while the ask rate was assessed at the USD 457/mt CFR Far East levels.

Forward naphtha prices have increased today morning despite a slight fall in crude prices. The forward naphtha market price indications for the 2nd half of May were higher at the USD 479.50/mt levels while for the 1st half of June the forward naphtha market price indications were upwards at the USD 472.50/mt levels. For the 2nd half of June the forward naphtha market price indications were at the USD 467.50/mt levels.