[PETROCHEMICALS ]

www.platts.com
POLYMERSCAN
Now online at pmc.platts.com Volume 37 / Issue 37 / September 17, 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 925-935 62.00-64.00 1366.48 -1410.56 —- 1065-1075 1030-1040


LDPE G-P 1764-1786 92.00-93.00 2027.68 -2049.72 1840-1850 1780-1790 1770-1780
LLDPE (Butene) 1698-1720 79.00-80.00 1741.16 -1763.20 1790-1800 1735-1745 1740-1750

HDPE Inj 1709-1731 83.00-84.00 1829.32 -1851.36 1780-1790 1710-1720 1745-1755
Bmldg 1687-1709 83.00-84.00 1829.32 -1851.36 1780-1790 1710-1720 1745-1755
Film 1709-1731 86.00-87.00 1895.44 -1917.48 1780-1790 1735-1745 1755-1765
Yarn —- —- —-

PP Homo Inj 1764-1786 82.50-83.50 1818.30 -1840.34 1655-1665 1685-1695 1685-1695
Fiber —- 83.50-84.50 1840.34 -1862.38 —- —- —-
Copol 1786-1808 —- 1695-1705 1725-1735 1725-1735
IPP Film
BOPP

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

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

Asian Polymer Spot Price Assessments Contents

CFR FE Asia CFR SE Asia CFR China Polymers
($/mt) ($/mt) South Asia Domestic
($/mt) (Yuan/mt) Polyvinyl Chloride 4
PVC SUSP 1029-1031 1029-1031 1064-1066 ^6940-6960 Low Density Polyethylene 5
^^5940-5960 Linear Low Density Polyethylene 6
High-Density Polyethylene 7
LDPE G-P 1549-1551 1579-1581 —- 12180-12220 Polypropylene 9
LLDPE (Butene) 1509-1511 1559-1561 1639-1641 10980-11020 Polystyrene 10
Acrylonitrile Butadiene Styrene 12
HDPE Inj 1519-1521 1569-1571 1629-1631 —-
Polyethylene Terephthalate 13
Bmldg 1539-1541 1569-1571 1629-1631 —-
Film 1564-1566 1579-1581 1634-1636 11980-12020 Polymer Feedstocks: Olefins
Yarn 1579-1581 1604-1606 —- —-

Ethylene 16
PP Raffia 1494-1496 1524-1526 1559-1561 11080-11120 Ethylene Glycol 17
PP Injection 1484-1486 1519-1521 1559-1561 —- Propylene 18
Fiber —- —- Butadiene 19
Copol 1599-1601 1609-1611 1614-1616 —-
IPP Film 1514-1516 1564-1566 1599-1601 —- Polymer Feedstocks: Aromatics
BOPP 1509-1511 1559-1561 1584-1586 —- Paraxylene 21
Styrene 22
PS G-P 1619-1621 1649-1651 —- —-
HIPS 1699-1701 1729-1731 —- —- Polymer Feedstocks: Intermediates
EPS G-P 1674-1676* Purified Terephthalic Acid 24
EPS F-R 1724-1726* Acrylonitrile 25
ABS Inj 1909-1911 1924-1926 —- —-
Ethylene Dichloride /

Vinyl Chloride Monomer 25
PET bottle grade 1244-1246 * 1284-1286 ** —- —-
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
calculated using 1 month LIBOR +1.5%. ^Denotes ethylene-based production ^^Denotes carbide-based production. EPS F-R refers
26
to fire retardant grade. *Denotes FOB North East Asia (South Korea, China, Japan) **Denotes FOB Southeast Asia (Thailand,
Indonesia , Vietnam, Malaysia).
 PLATTS POLYMERSCAN september 17, 2014

Daily Polymer Spot Price Assessments

Thursday Friday Monday Tuesday Wednesday Average
CFR FE Asia ($/mt)
HDPE film 1569-1571 1569-1571 1569-1571 1569-1571 1564-1566 1568.00-1570.00
LDPE 1569-1571 1569-1571 1549-1551 1549-1551 1549-1551 1557.00-1559.00
LLDPE 1534-1536 1529-1531 1509-1511 1509-1511 1509-1511 1518.00-1520.00
PP Raffia 1499-1501 1499-1501 1499-1501 1494-1496 1494-1496 1497.00-1499.00
PP Injection 1489-1491 1489-1491 1489-1491 1484-1486 1484-1486 1487.00-1489.00
FD NWE (Euro/mt)
LDPE 1248-1252 1248-1252 1248-1252 1248-1252 1248-1252 1248.00-1252.00
LLDPE 1248-1252 1248-1252 1248-1252 1248-1252 1248-1252 1248.00-1252.00
PP Homo 1258-1262 1258-1262 1258-1262 1258-1262 1248-1252 1256.00-1260.00
FCA Antwerp (Euro/mt)
LDPE 1228-1232 1228-1232 1228-1232 1228-1232 1228-1232 1228.00-1232.00
LLDPE 1228-1232 1228-1232 1228-1232 1228-1232 1228-1232 1228.00-1232.00
PP Homo 1238-1242 1238-1242 1238-1242 1238-1242 1228-1232 1236.00-1240.00
FAS Houston ($/mt)
LDPE 1764-1786 1764-1786 1764-1786 1764-1786 1764-1786 1764.00-1786.00
LLDPE 1698-1720 1698-1720 1698-1720 1698-1720 1698-1720 1698.00-1720.00
PP Homo 1753-1775 1753-1775 1764-1786 1764-1786 1764-1786 1759.60-1781.60
HDPE Blmldg 1698-1720 1698-1720 1698-1720 1687-1709 1687-1709 1693.60-1715.60
FOB Middle East Netbacks ($/mt)
HDPE 1558-1560 1558-1560 1558-1560 1558-1560 1553-1555 1557.0-1559.0
LDPE 1558-1560 1558-1560 1538-1540 1538-1540 1538-1540 1546.00-1548.00
LLDPE 1523-1525 1518-1520 1498-1500 1498-1500 1498-1500 1507.00-1509.00
PP Raffia 1488-1490 1488-1490 1488-1490 1483-1485 1483-1485 1486.00-1488.00
PP Injection 1478-1480 1478-1480 1478-1480 1473-1475 1473-1475 1476.00-1478.00
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 16 cts/lb 110.585 concise market commentaries will be separate assessment
Tin US Sep 15 cts/lb 983 rationales. The rationales are designed to give the reader
Tin Europe Sep 12 $/mt 21679-21801 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 $1.2944 £1 to €1.2602 questions or comments to petchems@platts.com with a cc to
pricegroup@platts.com
Global PP Prices
Platts changes timing basis for ethylene FD USG, Sept 2
2000 Effective September 2, 2014, Platts will change the timing
CFR FE Asia* ($/mt) FD NWE (€/mt) FAS Houston ($/mt)
basis reflected in its daily US spot ethylene assessment
1800 to current delivery month (M1) and next month (M2) from
the current 3- to 30-day basis. Platts will change the
1600 current delivery month roll into next delivery month three
(3) calendar days prior to the end of the month. If this
day falls on a weekend or holiday, Platts will roll its US
1400
spot ethylene assessments to the next month on the next
business day. All other assessment parameters will remain
1200
in effect. Spot ethylene will remain assessed on a free-
23-Apr 22-May 20-Jun 21-Jul 19-Aug 17-Sep
delivered (FD) basis into the US Gulf Coast pipeline system
*From October 17, PP-raffia/injection assessment was replaced by PP-raffia for CFR FE Asia
(continued on page 27)

Copyright © 2014, McGraw Hill Financial 2

 PLATTS POLYMERSCAN september 17, 2014

Euro Contract Assessments (Euro/mt)

Germany Holland Italy France Spain Britain* FD NWE CP**
($/mt)
PVC susp Gross 848-852 848-852 848-852 848-852 848-852 703-707 1098-1102
PVC susp Net 823-827 823-827 823-827 823-827 823-827 683-687

LDPE G-P 1450-1455 1450-1455 1420-1425 1445-1450 1420-1425 1155-1159 1877-1883

LLDPE C4 (Blown film) 1400-1405 1400-1405 1400-1405 1400-1405 1400-1405 1115-1119 1812-1819
LLDPE C4 (Cast stretch film) 1400-1405 1400-1405 1400-1405 1400-1405 1400-1405 1115-1119 1812-1819
LLDPE C6 (Blown film) 1440-1445 — — — — — 1864-1870
LLDPE C6 (Cast stretch .film) 1440-1445 — — — — — 1864-1870

HDPE Inj 1350-1355 1350-1355 1350-1355 1350-1355 1350-1355 1076-1080 1747-1754

HDPE Bmldg 1330-1335 1330-1335 1330-1335 1330-1335 1330-1335 1060-1064 1722-1728
HDPE Film 1270-1275 1270-1275 1270-1275 1270-1275 1270-1275 1012-1016 1644-1650
HDPE HMW 2-5 1350-1355 1350-1355 1350-1355 1350-1355 1350-1355 1076-1080 1747-1754
HDPE HMW 5-10 1345-1350 1345-1350 1345-1350 1345-1350 1345-1350 1072-1076 1741-1747

PP Homo Inj 1420-1425 1420-1425 1410-1415 1420-1425 1410-1415 1131-1135 1838-1845

PP Copol 1470-1475 1470-1475 1460-1465 1470-1475 1460-1465 1171-1175 1903-1909

GPPS Net 1500-1510 1500-1510 1500-1510 1500-1510 1500-1510 1195-1203 1942-1955

HIPS Net 1580-1590 1580-1590 1580-1590 1580-1590 1580-1590 1259-1267 2045-2058
EPS 1535-1545 1535-1545 1535-1545 1535-1545 1535-1545 1223-1231 1987-2000

ABS GP/Nat 1690-1700 — 1690-1700 1690-1700 1690-1700 1347-1354 2188-2200

ABS Ave color 1940-1950 — 1940-1950 1940-1950 1940-1950 1546-1554 2511-2524
ABS Auto black 2090-2100 — 2090-2100 2090-2100 2090-2100 1665-1673 —-

PET bottle grade 1175-1179 — 1175-1179 1175-1179 1175-1179 915-919

PET bottle grade — — — — — 1148-1153##
PET bottle grade Net 1088-1092 — — — — 888-892 1408-1413
PET bottle grade Net — — — — — 1115-1120##
APET film grade 1164-1169
APET film grade Net 1078-1082
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) ($/mt) (GBP/mt)
PVC SUSP 962-966 823-827 — 794-798 1043-1047 — —
($/mt) 1028-1032

LDPE G-P 1538-1543 1248-1252 1228-1232 1198-1202 1650-1654 1658-1662 —

LLDPE (Butene) —- 1248-1252 1228-1232 1198-1202 1646-1650 1583-1587 —

HDPE Inj 1525-1530 1238-1242 1218-1222 1188-1192 1621-1626 1598-1602 —

Bmldg 1473-1478 1198-1202 1178-1182 1148-1152 1583-1587 1598-1602 —
Film 1538-1543 1248-1252 1228-1232 1198-1202 1627-1631 1598-1602 —

PP Homo Inj 1538-1543 1248-1252 1228-1232 1208-1212 1646-1650 1580-1584 —

PP Raffia — — — — 1615-1619 1580-1584 —
PP Copol 1628-1634 1318-1322 1298-1302 1278-1282 1704-1708 1640-1644 —

PS G-P 1747-1760 1410-1420 — — 1780-1790 1775-1785 —

HIPS 1857-1870 1495-1505 — — 1865-1875 1830-1840 —
EPS 1838-1851 1480-1490 — — 1870-1880 — —
ABS GP/Nat 1995-2005***
1661-1670 — — — —

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

PET bottle grade — — — — — — 1083-1088#
Recycled PET — 888-892 — — — — 733-737
Recycled PET — — — — — — 920-925#
Notes: FOB NWE prices are based on exports of 300mt or more. *CFR Russia denotes CFR St Petersburg; ** CFR Turkey denotes CFR Istanbul; *** ABS GP/Nat denotes CFR NWE in $/mt. # PET
bottle grade and Recycled PET assessments for FD UK are in Euro/mt. Recycled PET assessments are for a hot wash flake without food approval.

Copyright © 2014, McGraw Hill Financial 3

 PLATTS POLYMERSCAN
Polymers
Polyvinyl Chloride
Europe
European polyvinyl chloride spot and contract prices
remained flat this week, both assessed at Eur825/mt
FD NWE. The low demand that saw prices follow the
full drop in September ethylene contracts has now
been heard to have improved, sources said. Demand
had been seen reduced through August, more so then
had been seasonally expected, creating a buyers market
early September, sources said. “We saw the biggest
summer lull this August, meaning customers will have
to fill stock,” a producer source said. Demand has
now reportedly begun to increase. “I was expecting a
quiet week, however it’s been busy with more product
than expected moving,” a trader source said. After the
September ethylene contract settled at Eur1,150/mt,
down Eur55/mt from the August CP, its full impact of
a Eur26/mt fall — as it makes up 48% of PVC — had
been seen last week. After a full concession in ethylene
further price falls proved difficult this month with
producers running on tight margins, sources said —
consumers who needed to buy in September would
therefore buy now. However, those with good stock
levels have been heard waiting further, “We do not
need to over-purchase on PVC now, we can run on
low stock levels as we expect further price decreases,”
a producer source said, on the expectation of a drop
in October ethylene contracts. Ethylene-feedstock
naphtha was seen at $850/mt CIF NWE Tuesday, down
$22.25/mt from when ethylene last settled on August
29, where feedstock naphtha was at $872.25/mt CIF
NWE. “Ethylene is a common factor in purchases, with
customers asking me would it be better to postpone?”
a trader source said. Looking ahead, October will be
a deciding month for the year as typically November
onwards sees a seasonal drop in demand, sources said.
In Turkey, meanwhile, the spot price remains flat at
$1,045/mt on unchanged fundamentals with offers still
heard as low as $1,050/mt CIF Turkey. The expectation
of a decrease in the October ethylene contract, the
strong US dollar against the euro and the low demand
seen in Turkey have all contributed to these low offer
levels, trade sources said. Export offers from Europe were
also seen increasing in number following lower then
expected sales through August and early September.
Eurostat figures released Monday show EU exports of
PVC rose 35% to 124,045 mt in July, up 32,352 mt from
the same month in 2013. Exports to Turkey accounted
for the majority of this rise, up 71% year on year to
47,707 mt July 2014. Year-to-date figures show that
around 321,583 mt of PVC has been exported to Turkey
from the EU in 2014 so far, compared with 234,492 mt
in the same seven months of 2013.
Copyright © 2014, McGraw Hill Financial
september 17, 2014
United States
US export PVC prices declined $5/mt week on week,
assessed Wednesday at $925-935/mt FAS Houston, as
producer to trader offers were heard at $940/mt FAS
Houston range, against buying ideas heard in the $890-
900/mt range. In markets, offers for US-made product
were heard at $990/mt CFR Turkey and offers were
heard at $1,000/mt China which in turn net-backed to
$925-935/mt FAS Houston, sources said. Sources pegged
trading levels in the $920-940/mt FAS Houston range,
with one trading source expecting even lower pricing
in November, as domestic demand was anticipated to
seasonally slow down in the fourth quarter. In industry
data, August PVC production declined to 1.328 billion
lbs, down 13.2 million lbs from 1.341 billion lbs in
July, preliminary data from the American Chemistry
Council showed Thursday. The figure brings year-to-date
PVC production to 9.98 billion lbs. Preliminary sales
and captive use in August amounted to 1.338 billion
lbs, a drop of 58 million lbs from the previous month,
while exports were at 428.3 million lbs, a drop of 33.1
million lbs from July. August preliminary export volumes
put year-to-date PVC exports at 3.085 billion lbs. In
feedstocks, US spot ethylene marked its highest price in
over 29-months, assessed Tuesday at 74.75-75.25 cents/lb
FD USG, following short-covering of positions amid thin
supply and ongoing production outages, market sources
said. The assessment is at its highest since the April 4,
2012, assessment of the same level, Platts data showed.
September spot ethylene was last heard traded Tuesday
at 75 cents/lb MtB Wms, while October was last heard
traded Wednesday at 73.5 cents/lb MtB Wms.
Asia
Asian polyvinyl chloride prices fell again this week amid
continuing weak demand across Asia. The key import
CFR India market fell $5/mt week on week to be assessed
at $1,065/mt, while the CFR China market fell $13/mt to
$1,030/mt and the CFR Southeast Asia market fell $8/mt
to $1,030/mt. Major producer Taiwan’s Formosa released
its offers for October Wednesday at $1,070/mt CFR India,
$1,030/mt CFR China and $1,030/mt CFR Southeast Asia,
setting the benchmark for price negotiations across the
region. Other offers from Taiwan followed at $1,070/
mt CFR India against buying ideas below $1,050/mt.
Market participants said the response to October offers
in India was weak as South Korean-origin cargoes had
been available below $1,060/mt in the past two weeks.
One trade source said buyers were also standing on
sidelines expecting prices to fall further during the last
month of India’s monsoon season. However, several
sources said end-users were likely to buy ethylene-based
PVC at close to offer prices due to a shortage of cheaper
carbide-based PVC in India at present. In China, offers
4
 PLATTS POLYMERSCAN
were heard at $1,030/mt CFR against bids at $1,000/
mt and below. US-origin cargoes for delivery to China
were heard offered at around $1,000/mt. No trades were
heard. A seller said October selling indications were
“reasonable” and deals were likely to conclude at offer
levels. The fall in CFR China prices this week may reduce
the volume of US origin cargoes heading to China amid
high feedstock ethylene costs, a Northeast Asia producer
said. In the Chinese domestic market, ethylene-based
PVC was assessed flat week on week at Yuan 6,950/mt
and carbide-based PVC flat at Yuan 5,950/mt. Trades
for ethylene- based PVC were heard falling below Yuan
7,000/mt as downstream makers opted for cheaper
alternatives such as carbide-based PVC, a Chinese source
said. Standalone PVC makers have mostly cut operating
rates to below 40% of capacity amid high feedstock VCM
prices and falling demand. With fewer carbide-based
PVC exports expected this month, growing supply in
the domestic China market will likely result in a further
fall in domestic prices, the source added. In Southeast
Asia, selling indications were heard at $1,020-1,030/mt
against buying indications at $1,000/mt and below. With
less Chinese PVC heading to India due to thin margins,
several market sources were expecting to see more head
to Southeast Asia instead. One Southeast Asian producer
said demand for carbide-based PVC remained strong at
$960-980/mt CFR Southeast Asia as it was cheaper than
ethylene-based PVC.
Latin America
Latin American import assessments were steady for the
week amid lackluster trade. The CFR Brazil assessment
was at $1,065-1,075/mt Wednesday, as trading levels
were heard in the $1,070s/mt. Market sources said that
declining prices in Asia could lead to lower prices into
Latin America, but that was not yet the case. The Peru
assessment was at $1,030-1,040/mt on a CFR basis, as
trading levels were heard at the same level. Market sources
talked of expectations for lower prices in the fourth-quarter
of the year, as dropping ethylene prices in Europe and Asia
were leading to PVC buyers concluding deals for October
deliveries at levels $50-60/mt below September’s levels.
US-based producers were yet to drop prices to those levels,
as ethylene prices in the US Gulf continued to hover above
29-month highs at 75 cents/lb ($1,653/mt) FD USG.
Low Density Polyethylene
Europe
European low density polyethylene spot prices were
stable this week, closing at Eur1,250/mt FD NWE, as the
weaknesses upstream continued to hinder the market.
Ethylene spot prices remained at a low previously seen
May 27, and this slump in domestic ethylene prices has
resulted in producers exporting 87,600 mt, or 10 cargoes, of
ethylene to Asia, loading September-October. The slump in
Copyright © 2014, McGraw Hill Financial
september 17, 2014
the energy market was matched by unimproved demand in
LDPE, still feeling the effects of the seasonal lull. In the spot
market, one source said that LDPE demand was particularly
poor in Italy, due to poor economic conditions. She added:
“Italy is in trouble, we are in recession, and taxation is too
high. The only [positive] aspect is export.” This trend of
stronger European exports was spoken of again this week,
with one trader saying that there was a dearth of LDPE
supply in North America which aided European exports.
Offers were heard in South America at $1,780-1,800/mt
CFR Peru. In the contract market, prices were unchanged
at Eur1,450-1,455/mt FD NWE. The prices reflect the full
ethylene contract price decrease of Eur55/mt. In recent
Eurostat data, PE exports for the January-July period were
up 3% year on year to 1,208,750 mt. PE imports were down
12% year on year to 1,444,504 mt. LDPE exports were
up 17% to 524,442 mt, while imports were down 13% to
299,014 mt. In production news, Ineos shut its 400,000 mt/
year LDPE plant in Cologne, Germany, on Monday after
a burst disk released pressure, leading to minor ethylene
emissions, a company spokesman said Wednesday. The
ethylene was burned out safely, he said. “Ineos notified
the local authorities immediately and is now carrying out a
thorough in-house investigation” of the incident, he added.
United States
Spiking feedstock ethylene prices and continued talk of
strong domestic demand continued to strengthen beliefs
that US producers would be able to implement 3-4 cents/lb
increases for September contracts, sources said. Domestic
contracts remained unsettled Wednesday and were last
assessed for August at 92-93 cents/lb ($2,028-2,050/
mt) delivered-railcar basis, unchanged since a 4-cent/
lb increase in February. US spot ethylene was assessed
Wednesday at 74.75-75.25 cents/lb FD USG, unchanged
from Tuesday and at its highest in more than 29 months,
following short-covering of positions amid thin supply
and ongoing production outages, market sources said.
Spot ethylene prices are up 4.75 cents/lb week on week.
Strong domestic demand and the current ethylene market
are giving producers less incentive to offer LDPE into an
already quiet US export market, sources said. US-origin
LDPE export prices were assessed Wednesday at $1,764-
$1,786/mt FAS Houston, unchanged week on week, with
source saying there was no new resin being offered into
the market by producers. Bulk railcar prices from producers
to traders were talked earlier this month at 75-78 cents/
lb, with bagged resin talked at 80-81 cents/lb. Sources said
offers into Latin America remained at the same level seen
a week ago, and were struggling to find traction against
lower offers from Asia, the Middle East and Europe. “They
have product, but it’s so high you can’t make it work,”
a US trader source said. Other sources suggested that
current US pricing was better aligned for the domestic spot
market, and with demand strong in the US, exports were
not a high priority for some sellers. Multiple sources said
the trend could continue through August.
5
 PLATTS POLYMERSCAN
Asia
Asian low density polyethylene prices fell this week as
sellers slashed prices to clear stocks before a week-long
holiday in China in early October. The CFR Far East Asia
marker was assessed down $30/mt week on week at $1,550/
mt and the CFR Southeast Asia marker down $20/mt at
$1,580/mt Wednesday. Offers were heard at $1,550-1,600/
mt CFR China, with deals heard concluded around $1,550/
mt CFR China. A Thai producer lowered its offer by $10/
mt from last week to $1,590/mt CFR China, while a Middle
Eastern producer lowered its offer $10/mt to $1,550/mt CFR
China. Buying sentiment was weak amid poor demand and
high inventory. Stocks of polyethylene and polypropylene
held by producers in China stood at 930,000 mt this week
compared with 900,000 mt last week, and market sources
anticipate the total will surpass the 1 million mark after
the holiday. In Southeast Asia, offers were heard at $1,610-
1,630/mt but there was little buying interest at such prices
amid lackluster demand. “Everyone is monitoring the
China market now as it is the largest market in Asia. If it
continues dropping, material is expected to be diverted in
huge volumes to the region, resulting in a supply glut,” said
a regional trader. In South Asia, deals were heard concluded
at $1,630-1,640/mt CFR India this week.
Latin America
Import prices for low-density polyethylene in Peru
dropped $20/mt week on week, assessed Wednesday
at $1,770-$1,780/mt CFR basis, with Europe-origin
inventory pressuring prices lower, sources said. Offers for
Spanish-origin material were heard in a range of $1,780-
$1,800/mt CFR basis. Other offers were heard at levels of
$1,835/mt CFR basis with letter of credit. Late last week,
Middle East-origin offers were heard at $1,800/mt CFR
basis with CAD payment terms. These were not included
in the assessment as they fall outside Platts’ specifications
for payment terms. European producers and sellers have
been steadily marketing product into South America over
the last two weeks, sources said. “Europe has opened the
door to its inventory to Peru,” a Lima-based buyer said.
Latin market participants continue to see Spanish-origin
product offered into their region on a more frequent
basis as European market watchers contend they are
long in product, sources in that market have said. A
US-based trader said he had sold into West Coast South
America in the $1,800-$1,820/mt range, but conceded
he had heard talks of deals below $1,800/mt CFR basis.
By comparison, US-origin LDPE film was offered into
Peru this week at $1,850/mt CFR basis, but no deals were
heard completed at that level. In Brazil, CFR assessments
dipped $20/mt week on week to $1,780-$1,790/mt on
what sources deemed more competitive offers from
Asia and the Middle East. LDPE offers were heard at
$1,800/mt CFR Brazil from the Middle East and Asia
by Brazilian buyers, with one indicating that anything
lower may be for off-grade product. No deals or bids
were heard by close of assessment. In export pricing, FOT
Copyright © 2014, McGraw Hill Financial
september 17, 2014
Brazil assessments remained stable, assessed Wednesday
$1,840-1,850/mt. No trades, bids or offers were heard
by close of assessment. Countries importing from Brazil
could continue to see high pricing as Braskem began its
35-day turnaround in Sao Paulo on September 6, with
an expected completion date of October 10. A Brazilian
buyer with a Braskem contract said the company seemed
prepared for the stoppage in regards to supply but was
worried about higher prices in October. The source
pegged the Brazilian market price at $1,850-1,900/mt.
Linear Low Density Polyethylene
Europe
European linear low density polyethylene spot prices
were stable this week, at Eur1,250/mt FD NWE, as the
rise in demand following participants returning from the
holiday period was offset by the weakness upstream, as
ethylene remained long. One trader said that inventories
were low in the market which prompted a need to buy.
In the contract market, prices were unchanged this week,
tracing the ethylene drop, and closing at Eur1,402.50/mt.
One producer said that order intake was very good, and
this was because of the weakening in the currency which
had resulted in a lack of imports. In recent Eurostat data,
PE exports for the January-July period were up 3% year
on year to 1,208,750 mt. PE imports were down 12% year
on year to 1,444,504 mt. Linear low density PE exports
were down 3% to 85,718 mt, and imports were also down
26% to 478,949 mt. In production news, ExxonMobil’s
metallocene linear low density polyethylene plant in
Notre Dame de Gravenchon, France, is preparing for a
turnaround in October, a buyer said Tuesday. ExxonMobil
is to cover the production shortfall in Europe by importing
material from ExxonMobil Chemical plants in the US
and Singapore, the buyer added. The Notre Dame de
Gravenchon plant has a metallocene capacity of 170,000
mt/year. ExxonMobil wasn’t immediately available for
comment on the matter Tuesday. In addition to the
metallocene site, two polypropylene plants and a cracker
are expected to go into turnaround during the same
period, sources said previously. The cracker and one of the
PP plants are located in Gravenchon, while the second PP
plant is based in Lillebonne. The ethylene capacity of the
steam cracker at Gravenchon is 425,000 mt/year, while the
PP plants in Gravenchon and Lillebonne have a capacity
of 205,000 mt/year and 180,000 mt/year, respectively.
United States
US linear low-density exports, where available, again
struggled to find footing against lower-priced offers from
other regions. LLDPE was assessed Wednesday at $1,698-
1,720/mt FAS Houston, unchanged week on week. A deal
to Brazil was heard earlier this week at a price that would
netback to $1,710/mt FAS Houston, with a source noting
that the deal was above the local market level but accepted
6
 PLATTS POLYMERSCAN
because the buyer needed the quicker-arriving US-origin
resin. An offer to Peru was also heard at a level that would
netback to $1,730/mt FAS Houston. Bulk railcar prices
from producers to traders were talked in the 72-76 cents/
lb range earlier this month, but multiple sources noted
this week that producers were not offering cars for export
at this point in the month. Current pricing was notionally
being talked more along the line of domestic spot because
of high demand and rising ethylene costs, which was
making the export market less attractive to US producers
— particularly against lower offers from Asia and the
Middle East. Multiple sources said they were expecting
limited export availability from the US in October as
well and most trader sources have been opting to source
Asian and Middle East resin to supply global customers.
Platts assessed spot ethylene at a 29-month high Tuesday
after multiple traders were heard at 75 cents/lb FD USG
for September. A deal was heard completed Wednesday
at 73.50 cents/lb FD USG for October. The spike in spot
ethylene pricing this week was heard leading to even
stronger belief in the market that producers would be
able to implement their first price increase since February.
Contracts assessments have been unchanged since that 4
cents/lb increase was implemented, but source said their
appeared to be little that could prevent the announced 3-4
cents/lb increases from going through this month. LLDPE
domestic contracts were assessed for August at 79-80 cents/
lb ($1,742-1,764/mt) for delivered railcars.
Asia
Linear low density polyethylene prices were weaker this
week amid a selling frenzy. The CFR Far East Asia marker
fell $40/mt week on week to be assessed at $1,510/mt
Wednesday, while the CFR Southeast Asia marker was
down $20/mt week on week at $1,560/mt, and the CFR
South Asia maker slipped $10/mt over the same period to
$1,640/mt. The domestic China LLDPE price was assessed
at Yuan 11,000/mt, or around $1,436.58/mt on an import-
parity basis, down Yuan 300/mt from the previous week on
softening demand. A Middle Eastern producer lowered its
offer from $1,540/mt to $1,510/mt this week. Some deals
were heard concluded at $1,510/mt CFR China. Meanwhile,
a Thai producer was heard to have offered at $1,600/mt CFR
China, down $30/mt from last week. Cargoes originating
from Southeast Asia are exempt from import taxes under
the ASEAN FTA. In Southeast Asia, offers were heard at
$1,580-1,600/mt CFR Vietnam. Demand was heard to be
lackluster and most buyers were waiting for new offers to
be announced early next week. In South Asia, deals were
heard concluded at $1,640-1,650/mt CFR India. Demand
for imported cargoes were heard to be weak due to ample
material in the local market at competitive prices.
Latin America
Import assessments for linear low-density polyethylene
into Peru fell $25/mt week on week, assessed Wednesday
at $1,740-$1,750/mt CFR basis as lower-priced product
Copyright © 2014, McGraw Hill Financial
september 17, 2014
from Asia and the Middle East pressured prices. Middle
East-origin film was heard offered in a range of $1,765-
$1,780/mt CFR basis. Offers for US-origin material
remained high at $1,810/mt CFR basis, garnering little
buying interest, sources in the region said. In Brazil, CFR
prices fell $35/mt week on week, assessed at $1,735-1,745/
mt with buyers and traders talking prices into the region
lower. Both Asia-origin and Middle East-origin product
was heard offered in ranges of $1,760-1,770/mt CFR basis
against bids at $1,725-$1,740/mt, with one US-based trader
pegging the market at $1,740/mt CFR basis. One Brazil-
based buyer reiterated he is solely buying product from
Saudi Arabia due to pricing. Offers for US-origin product
continued to be deemed too high, market sources said.
A US-based trader was heard selling US-origin product
into Brazil for $1,800/mt, but he said the deal was made
under special circumstances, as the buyer needed prompt
delivery. For exports out of Brazil to Mercosur markets,
FOT Brazil pricing remained flat this week at $1,790-
$1,800/mt on thin trading. No deals, bids or offers were
heard for the week. LLDPE was last heard offered into
Paraguay last week at $1,940-$1,980/mt CPT basis. FOT
basis pricing does not include freight costs, estimated by
sources at $100-$120/mt. In production news, despite
Braskem’s 35-day turnaround at its Sao Paulo steam
cracker complex, a local buyer said Braskem had product
available for domestic buyers but acknowledged that
imports were filling in the missing gaps.
High-Density Polyethylene
Europe
Falling feedstocks weighed on prices this week, as HD
blowmolding and film dropped to Eur1,200/mt FD NWE,
and Eur1,250/mt respectively. HD injection prices were
assessed flat at Eur1,240/mt FD NWE. One trader said that
prices had dropped as market participants reduced buying
based on an expectation of falling prices. This expectation
was based on the recent trend of a drop in feedstock
prices. The drop in feedstocks was seen as ethylene
spot prices hit a low not previously seen since May 27
at Eur910/mt FD NWE, following the fall in the energy
markets. The downside to prices was limited by the lack of
imports, caused by the stronger dollar, sources said. In the
contract market, prices remained unchanged, tracing the
fall in ethylene, closing at Eur1,352.50/mt, Eur1,332.50/
mt, and Eur1,272.50/mt, for injection, blowmolding and
film respectively. One producer said that order intake was
slightly stronger since market participants returned from
holiday, and that this limited the month-on month drop
in HDPE contract prices. In production news, sources
reported tight supplies of HDPE from LyondellBasell’s
320,000 mt/year plant in Plock, Poland. It was not clear
whether the plant was in maintenance. Previously, sources
reported a four-week turnaround for the plant. In the
latest Eurostat data, PE exports for the January-July period
7
 PLATTS POLYMERSCAN
were up 3% year on year to 1,208,750 mt. PE imports were
down 12% year on year to 1,444,504 mt. HDPE exports
were down 6% year on year to 598,590 mt; imports,
meanwhile were up 2.6% to 666,541 mt
Africa
North African polyethylene prices were stable this week,
as reduced availability from the Middle East caused by
the ethylene shortage was offset by poor demand based
upon an expectation of falling prices caused by upstream
weakness, sources said. LDPE, LLDPE, and HDPE prices were
assessed at $1,660/mt CFR North Africa, $1,585/mt, and
$1,600/mt respectively. The prolonged poor demand in
Europe meant that European producers continued to look
to buyers in other regions, sources said.
United States
Strong domestic demand and rising ethylene prices
continued to make for a virtually non-existent export
market for US-origin high density polyethylene. Multiple
trader sources said they were finding it difficult to secure
product for export from US producers, with pricing being
talked at a level that made more sense in the domestic
spot market than as competing offers against lower-
priced resin from Asia, the Middle East and even Europe.
Sources in Latin America said there were minimal offers
for US-origin HDPE, and those that were being heard
were not at workable levels. “The door is shut right now
for US material going anywhere,” one trader said. Most
US-based exporters were looking to other lower-priced
regions to supply customers outside the US. Most US
export pricing was notional, and at a level sources warned
was several cents above the level need to sale. But with
domestic PE demand heard strong and spot ethylene
trading this week at 75 cents/lb FD USG for September
and 73.50 cents/lb FD USG for October, there was little
incentive for producers to make polyethylene for export.
HDPE blowmolding was assessed Wednesday at $1,687-
$1,709/mt FAS Houston, down $11/mt week on week. Bulk
railcar prices were talked in the 71-76 cents/lb range, with
most market participants heard pegging prices around
74-75 cents/lb for bulk cars, though no cars where heard
purchased at that level. That price range would translate to
$1,687-$1,709/mt FAS Houston. An offer to Peru was heard
at a level that would netback to $1,750/mt FAS Houston.
Bagged blowmolding was offered Tuesday at 77 cents/
lb ($1,698/mt) for a 85/mt cargo, which was too small to
be taken into consideration. HDPE Injection was assessed
Wednesday at $1,709-$1,731/mt FAS Houston, flat week
on week, as product remained tighter than other grades of
HDPE, sources said. Sources notionally talked prices about
a cent above blowmolding. A deal was heard Wednesday
at 82 cents/lb DAF Laredo. HDPE high molecular weight
film was assessed at $1,709-$1,731/mt FAS Houston, down
$11 week on week, with no confirmed deals. Offers to
Latin America were heard at levels that would netback to
$1,730/mt FAS Houston. September domestic contracts
Copyright © 2014, McGraw Hill Financial
september 17, 2014
were unsettled with expectations producers would succeed
in efforts to implement 3-4 cents/lb increases because of
higher ethylene prices and strong demand. August HDPE
contracts were assessed for blowmolding at 83-84 cents/lb
($1,830-1,852/mt) delivered-railcar basis; at 83-84 cents/
lb ($1,830-1,852/mt) for injection; and at 86-87 cents/lb
($1,896-1,918/mt) for HMW film.
Asia
Asian high density polyethylene prices fell amid weak
sentiments this week, led by thin demand and high stocks
in China. The CFR Far East Asia marker was down $10/
mt on the week to be assessed at $1,565/mt Wednesday,
while CFR Southeast Asia was assessed $25/mt lower, at
$1,580/mt. The CFR South Asia was assessed at $1,635/
mt, down $15/mt from the previous week. Offers were
heard at $1,570-1,590/mt CFR China. However, buyers
were shunning the market as they anticipated prices to fall
under further pressure especially after the upcoming week-
long National Day holidays starting October 1, amid low
demand and high inventory. Some participants were on
the sidelines awaiting offers, which were likely to come in
early next week. Stocks of polyethylene and polypropylene
held by producers in China were at 930,000 mt this week,
up from 900,000 mt last week. Market sources anticipated
stocks to cross the 1-million mark after the holidays. In
China, domestic prices fell Yuan 200/mt to Yuan 12,000/
mt, or $1,567/mt on an import parity basis. In Southeast
Asia, offers were heard at $1,600-1,610/mt CFR Vietnam.
Meanwhile, Malaysian material which does not attract
any import tax, was heard offered at $1,620-1,630/mt CFR
Southeast Asia. Buyers in the region were also cautious
amid falls in the Chinese market. In South Asia, offers
were heard at $1,640-1,650/mt CFR India, and deals were
heard concluded at $1,635/mt CFR India. Sources noted
that demand remained firm amid current and upcoming
shutdowns. In related news, South Korea’s HDPE exports in
August fell 13.7% from the previous month to 87,249 mt,
customs data released Monday showed.
Latin America
High density polyethylene imports to Latin America
continued to be dominated by Asian and Middle Eastern
product as the US remained a non-factor for spot exporting,
sources said. In Brazil, the HDPE film assessment dropped
$15/mt week on week $1,735-$1,745/mt CFR basis
Wednesday while blowmolding dropped $20/mt to $1,710-
$1,720/mt. A blowmolding deal was heard concluded at
$1,715/mt CFR Brazil. No confirmed deals were heard
for film. Offers for all HDPE grades were heard at $1,740-
$1,760/mt on a CFR basis. Offers for Asian product heard
at that level this week, however they would arrive in 40-45
days, which fell out of Platts pricing methodology. Saudi
Arabia-origin blowmolding and film were both offered
into Brazil at $1,740-$1,760/mt on a CFR basis. Injection
lowered $20/mt to $1,710-$1,720/mt. A deal for HDPE
injection was heard at $1,715/mt CFR Brazil. US-origin resin
8
 PLATTS POLYMERSCAN
offers continue to be talked high, with all HD products
pegged in the $1,800/mt range by a Mercosur source. A
market participant in Brazil said “the US does not need to
export, so they do not need to decrease the price.” In Peru,
film was assessed $10/mt lower at $1,755-$1,765/mt CFR
basis. Korea-origin material was offered between $1,780-
1,800/mt, with various factors — including late September
loading and CAD payments required. Middle East film was
heard offered $1,720/mt CFR Peru with a letter of credit
of 120 days while Asian-origin film was offered at $1,770/
mt CFR Peru letter of credit 90 days. To compare, US-origin
material was offered at $1,830/mt CFR basis, per a source.
Blowmolding and injection were assessed flat week on week
at $1,745-$1,755/mt CFR basis. Asian-origin offers for all
grades were heard at $1,775/mt CFR basis, per a regional
buyer. US offers included blowmolding at $1,850/mt and
injection at $1,820/mt CFR basis, per a Peru based buyer. In
Brazilian exports, neighboring countries saw prices remain
flat at $1,780-1790/mt CFR basis week on week. No deals,
offers or bids were heard on an FOT Brazil basis, which is an
export assessment to Mercosur countries. FOT basis pricing
does not include freight costs, estimated by sources at
$100-$120/mt. A Brazilian buyer pegged all grades of HDPE
$1,760-1,800/mt for local buyers only.
Polypropylene
Europe
European polypropylene prices were down by Eur10/
mt on the week to Eur1,250/mt FD NWE, as demand
faltered amid bearish October expectations. Despite
the recovery in feedstock naphtha, and propylene spot
prices remaining unchanged on the week at Eur1,061/
mt FD NWE Wednesday, converters remained cautious
and demand was characterized as being hand to mouth.
Naphtha has recovered from its year-to-date low of
$834.25/mt CIF NWE touched on September 10, to be
assessed at $844/mt Wednesday. PP spot prices were heard
from Eur1,240-1,300/mt FD NWE. European PP was heard
heading to Turkey, CFR offers heard at Eur1,265-1,280/mt
FD NWE as sellers liquidated long positions. One producer
reported selling 4,000-5,000 mt to Turkey from NWE. In
Turkey, raffia prices collapsed on a glut of product from
Middle East, two trading sources said, with offers heard
at $1,520-1,530/mt Turkey. Prices were assessed $1,615-
1,619/mt CFR, down $31/mt on the week, while fiber and
copol prices were pegged stable.: fiber grade offers from
the Middle East were heard at $1,590-1,600/mt CFR and
copol offers at $1,650/mt CFR ex-Middle East. European PP
was also heard being offered in South America at $1,740/
mt CFR. In the contract market, prices were assessed flat
at Eur1,420-1,435/mt FD NWE. Producers confirmed
that they had conceded to a decrease of Eur40-50/mt,
while converters were eyeing decreases larger than Eur50/
mt. The propylene contract price fell by Eur50/mt for
September to Eur1,105/mt FD NWE. In other news, PP
Copyright © 2014, McGraw Hill Financial
september 17, 2014
and propylene imports for the EU were up on the year.
Propylene imports were up by 23% to 154,315 mt for
January-July compared to same period last year. Exports
were at 13,970 mt about 1,000 mt higher on the previous
period. A similar picture was seen in polypropylene
imports which at 439,338 mt for for January-July were
up 3.8% on the year. PP exports, however, were down
to 472,560 mt for January-July period, 13% lower on
the year. In production news, LyondellBasell’s PP plants
in Plock, Poland and Carrington, England, remained in
force majeure, despite supplies resuming from the plants,
sources said this week. LyondellBasell was not immediately
available to confirm.
Africa
In northern parts of Africa, lazy demand taking cue from
Europe and Asia triggered a softening in prices. The CFR
Far East Asia marker for PP homo grade slipped $5/mt
week on week to be assessed at $1,485/mt Wednesday,
while European PP prices dropped Eur10/mt to Eur1,250/
mt FD NWE. European sellers eyed export options to get
rid of the length in the continent to Latin America and
Turkey. In North Africa offers were heard at $1,580/mt
CFR for homo injection. Prices were assessed down $3/mt
on the week to $1,580-1,584/mt.
United States
With September contract pricing for US polypropylene
settling at a rollover, talk in the market this week shifted
to October, with talks of a possible decrease muffled by
a sudden spike in spot refinery-grade propylene prices.
September contracts were assessed Wednesday at 82.50-
83.50 cents/lb ($1,819-$1,841/mt) delivered-railcar basis
for homopolymer grades and at 83.50-84.50 cents/lb for
fiber grades after the contract price for polymer-grade
propylene settled last week at a rollover at 72.50 cents/
lb and market sources said PP contracts were staying flat
for the month. Polypropylene contracts in the US closely
follow PGP contract pricing as a majority of contracts
remain on monomer-plus formulas. Distributor sources
have in recent weeks talked August demand as healthy
despite the increases, although other sources said those
increases had scared away buyers. Only one producer,
Total Petrochemicals, had announced an outright
increase of 3 cents/lb for September independent of PGP
behavior. Another producer, LyondellBasell, through
subsidiaries Equistar Chemicals and Mexico City-based
Basell Poliolefinas, earlier this month announced plans to
increase October polypropylene prices by 3 cents/lb ($66/
mt) in addition to any change in feedstock contract pricing.
Some market participants, including distributors, have said
a decrease for October is not out of the question, but with
spot refinery-grade propylene rising 6.25 cents/lb ($138/
mt) this week to 65.25 cents/lb, upward pressure could
be seen in spot PGP and PP, sources said. In exports, the
FAS Houston assessment for homopolymer injection rose
$11/mt week on week to $1,764-$1,786/mt on continued
9
 PLATTS POLYMERSCAN
tightness and nominally stronger spot propylene pricing,
with spot bids for PGP heard Wednesday at 69 cents/lb.
Market participants in recent months have talked export
pricing at a 10-cent/lb premium over propylene prices. No
deals, bids or offers were heard for the week. Co-polymer
assessments also rose $11/mt to $1,786-$1,808/mt to
maintain a $22/mt premium over homopolymer. No
trades, bids or offers were heard for the week. For export
to Mexico, offers for homopolyner injection molding were
heard this week at 82 cents/lb ($1,808/mt) DAP Laredo for
bagged material in trucks, with one trader saying he had
not garnered any interest at those levels. Prime-quality
homopolymer product was being offered at 79-82 cents/lb
DAP Laredo, the trader source said.
Asia
Asian polypropylene prices were stable to lower amid thin
trade activities on weak market sentiment. The CFR Far East
Asia marker for PP raffia grade slipped $5/mt week on week
to be assessed at $1,495/mt Wednesday. Offers were heard
between $1,490/mt on an L/C at sight basis and $1,520/
mt on an L/C 90-day basis. There were few inquiries and
no deals were heard concluded. Market participants said
that buyers are keeping their inventories low. “Customers
are saying that next month the price is going down.
They do not want to take stocks [right now],” one of the
market participants said. In China, domestic prices in the
Shandong area were heard at Yuan 10,900-11,150/mt and
was assessed at Yuan 11,100/mt, down Yuan 200/mt week
on week. The assessed price is equivalent to $1,450/mt
on an import parity basis. Market sources said that coal-
to-olefins and methanol-to-olefins plants are increasingly
pumping in supplies into the domestic market, weighing
down prices. The PP injection grade was assessed at $1,485/
mt CFR FEA, $5/mt lower on week. According to sources,
the spread between PP raffia and PP injection grades were
still at $5-10/mt with injection being lower amid relatively
weaker demand. There were some offers heard for PP
injection at $1,480-1,490/mt CFR FEA on an L/C at sight
basis. Meanwhile, the CFR Southeast Asia marker was flat
from the previous week and was assessed at $1,525/mt for
PP raffia grade. Offers were heard at $1,530-1,550/mt CFR
SEA. However, buyers were silent. A Southeast Asian trader
said: “At the moment they are not willing to bid. Everybody
feels prices will go down further.” The CFR South Asia
markers for PP raffia and PP injection were assessed at
$1,560/mt, stable from a week earlier. Offers were heard
hovering at $1,565/mt CFR South Asia similar to last week.
One trader from India said a deal was concluded between
$1,560/mt and $1,565/mt CFR South Asia. But this could
not be confirmed immediately. A second trader said the
market was quiet this week. “No deals being done [at the
moment] as the market is very very silent. Everybody is
expecting a drop [in prices] as crude has gone down.” In
related news, South Korea’s PP homo exports in August fell
2.6% from the previous month to 99,103 mt, customs data
released Monday showed.
Copyright © 2014, McGraw Hill Financial
september 17, 2014
Latin America
Polypropylene import assessments into South America
were $5-$15/mt lower this week amid lackluster demand,
sources said Wednesday. CFR Peru assessments for
homopolymer injection fell $5/mt week on week to
$1,685-$1,695/mt CFR Peru, while co-polymer receded
$15/mt to $1,725-$1,735/mt CFR basis. Asia-origin
homopolymer injection was heard offered this week at
$1,710/mt CFR basis, while raffia was heard offered as low
as $1,680/mt CFR basis. PP for blowmolding applications
was heard offered at levels of $1,710-$1,715/mt CFR basis.
No deals or firm bids were heard for the week. In Brazil,
the homopolymer assessment also fell $5/mt week on
week to $1,685-$1,695/mt CFR basis, with sources talking
offers for Southeast Asia-origin material at $1,710/mt
CFR basis. The co-polymer assessment fell $15/mt week
on week to $1,725-$1,735/mt CFR basis, with notional
offers talked at $1,740/mt CFR basis and no deals heard by
close of assessment. For exports out of Brazil to Mercosur
markets, assessments were stable week on week at $1,655-
$1,665/mt FOT basis for homopolymer grades and $1,695-
$1,705/mt FOT basis for co-polymer grades. No deals were
heard by close of assessment. FOT basis pricing, which is
for Brazil product exported to Mercosur countries, does
not include freight costs, estimated by sources at $100-
$120/mt. Elsewhere, offers for homopolymer raffia grade
into Central America were talked at levels of low- to mid-
$1,700s/mt on a CIF basis for material sourced in South
Korea and the Middle East and loading in October, a
US-based trader said. In feedstocks, Venezuela’s Pequiven
was heard restarting olefins production at its steam cracker
in El Tablazo after severe drought conditions forced its
shutdown in early August. Confirmation from the state-
owned company was unavailable by time of publication,
but a regional source who buys olefins from Venezuela
said the plant had restarted within the past week.
Production at the Ana Maria Campos (El Tablazo) complex
includes 600,000 mt/year of ethylene and 260,000 mt/year
of propylene, per company data.
Polystyrene
Europe
European monthly polystyrene contract prices were under
pressure this week amid continued weak demand and good
supply. As a result, general purpose monthly contracts were
assessed at Eur1,505/mt FD NWE this week, representing a
Eur10/mt fall compared to last week’s level of Eur1,515/mt
FD NWE. It also represents a decrease of Eur50/mt compared
to the final August assessment of Eur1,555/mt, equivalent
to a full pass-through of the September styrene feedstock
costs. Some consumers were adamant that they would
pursue the full Eur50/mt decrease at the very least, given
the bearish state of the market, with the general consensus
being that they would target a September GPPS contract as
low as Eur1,450-1,460/mt FD NWE. This was countered by
10
 PLATTS POLYMERSCAN
another source who said that contracts were expected to
settle at around Eur1,500/mt FD NWE. Producers reported
seeking to expand margins and settle their contracts at a
decrease of between Eur30-35/mt but with the market well
supplied, given the imports from Korea, Russia and Egypt
in August, buyers wanted more. One converter said that it
was looking to pay around Eur1,400/mt for its spot volumes
in September. In addition, a decrease in spot styrene prices
is starting to give an impression that styrene CPs could also
fall in October, limiting any producer arguments for margin
expansion in September or limiting any fall in polystyrene
contracts, according to a converter. “I think that everyone
is disappointed because everyone thought demand would
be higher in September and October,” the same converter
said. Meanwhile, EU imports of general purpose polystyrene
(HS code 390319) doubled in July, pushing the region from
a net-long position to balanced, according to the latest
Eurostat data. Net exports dipped to almost zero for the
first time after a steady decline registered over the past year.
Imports rose to 17,499 mt in July from last year’s 8,550
mt, bringing the cumulative volumes for the first seven
months of the year to 105,774 mt. The increase in imports
— mainly from Russia (3,864 mt), Egypt (3,462 mt), South
Korea (3,449 mt) and India (1,967 mt) — reflected a more
competitive environment created by new capacities. In the
Turkish market, PS demand was also regarded as weak by
some suppliers, with offers seen as high as $1,820, according
to trader sources. Egyptian suppliers were looking to offer at
$1,820/mt CFR Turkey. However the same source said that
cash-flow problems among some buyers prevented them
from paying near these levels. In expandable polystyrene,
some producers were reporting similar bearish tones in
the market. One producer said it was reluctantly expecting
to settle its contracts at around the Eur1,550/mt FD NWE
level, admitting to a having to pass-through a decline in the
September styrene CP. As with polystyrene, EPS prices also
fell Eur10/mt to be assessed at Eur1,540/mt. One producer
admitted that it expected to settle its September contracts
at Eur1,550/mt FD NWE. European producers, who wanted
to expand margins, admitted that the current sentiment did
not allow for this. “EPS goes into construction and the sector
is not doing so well. There are not that many construction
projects. At the moment the economy is not going so well
and there is not that much confidence. People buy what they
need,” an EPS producer said. The EU’s net exports of EPS (HS
code 390311) also diminished, mirroring GPPS dynamics.
They dipped to 1,788 mt, down 75% year on year. Exports,
which totaled 6,311 mt in July and 60,991 mt in the first
seven months of the year, headed mainly to Turkey, the
Balkans and Switzerland. Imports, which have been pretty
stable over the past four months, amounted to 4,523 mt in
July and originated in Norway, China and Taiwan.
Africa
North African polystyrene prices were assessed unchanged
this week, despite producer attempts to raise prices as
market sources looked to demand improving in September.
Copyright © 2014, McGraw Hill Financial
september 17, 2014
“Demand is improving in September but it is difficult as
there is a lot of availability,” one source said. Sources said
the weaker euro versus the dollar was providing European
producers with the possibility of widening margins given
the competitive advantage versus Asian suppliers. Sources
reported that buying remained weak, however, due to
ample supply. “We decided to buy for our needs but no
more. There is so much availability...we have filled it
definitively,” a source said. Meanwhile in Asia, GPPS was
assessed $20/mt down this week to $1,620/mt CFR China
and down $10/mt to $1,650/mt CFR Southeast Asia as
polystyrene buyers remained on the sidelines amid price
volatility in the upstream market.
United States
September US domestic contract prices expectations
continued to be talked at a 2-4 cents/lb lower from
August contracts, but the contracts remained unsettled
by time of publication, sources said. Most market
participants said the contract would likely settle down
4 cents/lb from August but not all of the market was
heard to be at that level, with at least one seller heard at
down 2 cents/lb. Buyers had been seeking the decrease
in September following a drop of 36-37 cents in the
September US benzene contract price from August. With
benzene spot pricing dropping even further during
September, sources said another decrease in October
was possible. Domestic contracts were last assessed for
August at record-highs for the second straight month
of 126-128 cents/lb delivered railcar for general-purpose
polystyrene and 136-138 cents/lb delivered railcar for
high-impact polystyrene. If pricing moves lower in
September, it would be the first downward movement in
polystyrene since June when prices moved down 1 cent/
lb. Domestic prices rose 7 cents/lb in July. Polystyrene
demand was described as steady but slower following
the end of the summer polystyrene, sources said. Supply
was described as snug, but buyers have not had any
issues finding product, sources said. The expected drop
in polystyrene prices comes on the heels of a 58-59
cents/gal drop in benzene contract prices since July,
settling at 469-470 cents/gal for September, sources
said. Benzene spot prices were assessed at 430 cents/
gal FOB USG Wednesday. A movement of 10 cents/
gal in benzene is equal to 1 cent/lb in styrene and
polystyrene production costs, industry sources have
said, so the 58-59 cents/gal drop in benzene contracts
is equal to almost 6 cents less of production costs
for styrene and polystyrene. In production, Americas
Styrenics declared force majeure on all polystyrene and
styrene sales, effective August 1, according to letters
the company sent to customers in July. The company
cited limited feedstock ethylene supply for the force
majeure declarations in the letters. Sources said the
force majeure on both products was still in effect, but
confirmation from the producer was unavailable. In the
export market, the GPPS and HIPS assessments were
11
 PLATTS POLYMERSCAN
unchanged on the week at $1,995/mt FAS Houston and
$2,095/mt FAS Houston, respectively. No new offers or
bids were heard this week as US prices were still heard to
be too high compared to other regions. A South Korean-
origin offer on HIPS was heard at $1,900/mt CFR Peru.
Asia
GPPS: Asian general-purpose polystyrene was assessed
lower week on week, by $20/mt to $1,620/mt CFR China
and down $10/mt to $1,650/mt CFR Southeast Asia
as polystyrene buyers remained on the sideline amid
price volatility in the upstream market. Offers heard on
a CFR China basis ranged from $1,630-1,730/mt CFR
China, but the seller offering $1,630/mt CFR China
said buyers were not yet willing to commit. Upstream
styrene monomer prices rebounded $41/mt week on
week to $1,524/mt CFR China on Wednesday on short
covering and a reduction in SM inventories in China.
However, downstream demand did not appear to have
improved much at the moment. In Southeast Asia prices
continued on a downtrend this week and a producer said
the CFR Southeast Asia market was around $1,650/mt,
despite offers heard at $1,675/mt CFR Southeast Asia.
HIPS: High-impact polystyrene was assessed $5/mt lower
to $1,700/mt CFR China and down $10/mt to $1,730/
mt CFR Southeast Asia. Offers were heard from $1,710/
mt up to $1,870/mt on a CFR China basis, while deals
were heard around $1,730/mt on a CFR Southeast Asia
basis. Co-feedstock butadiene rose $20/mt week on week
to $1,530/mt CFR China on Wednesday. Meanwhile,
in plant news, France’s Total Petrochemicals started
test runs at its new 200,000 mt/year polystyrene plant
at Ningbo, eastern China, on September 15, market
sources said Wednesday. The company plans to run at
full capacity in October and initially produce HIPS at the
new plant, which consists of a single production line.
Sources close to the company said the new line is the
second largest of its kind in the world and the largest in
Asia. Total has an existing 200,000 mt/year polystyrene
plant in Foshan, South China and a 100,000 mt/year
polystyrene plant in Singapore. In other news, South
Korea exported 28,370 mt of HIPS in August, down
almost 13% from July, customs data released Monday
showed. EPS: Expandable polystyrene was assessed
unchanged at $1,675/mt for general purpose and at
$1,725/mt for fire retardant, both on a FOB Northeast
Asia basis. Offers were stable from last week. In related
news, South Korea exported 10,794 mt of EPS in August,
up 6.6% from July, customs data showed.
Acrylonitrile Butadiene Styrene
Europe
European acrylonitrile butadiene styrene contracts were
assessed at Eur1,695/mt FD NWE Wednesday unchanged
on the week, with producers reporting improved order
Copyright © 2014, McGraw Hill Financial
september 17, 2014
intake after a poor start to the month. Despite this,
feedstock costs in September had fallen and there were
expectations they could fall further in October as styrene
spot prices were seen around $80/mt lower so far in
September, leading consumers to expect further pass-
through next month. Market sources said local producers
were buoyed by a rise in exports, taking advantage of the
weaker euro versus the dollar. One producer said that
there were signs that seasonal demand was coming back
in time for the pre-Christmas cycle. “If I take (my) average
year-to-date [volume orders as an indication] and compare
to August we are 10% below average [but] we will be 10%
above average [in September] and the strongest month
of the year. Seasonality, and to a larger extent the forex
rate — these are the two factors that are driving things.,”
a producer said. Meanwhile, EU imports of ABS rose 10%
year on year to 16,661 mt in July, according to the latest
Eurostat data. Between January and July the block has
imported 103,513 mt of ABS, a 9% rise from last year.
Exports meanwhile were relatively stable both in July and
in the first seven months of the year, amounting to 10,515
mt and 70,884 mt respectively. As a result, net imports
rose by around 40% to 6,146 mt in July and 32,629 mt
year to date. South Korea and Taiwan remained main
suppliers of ABS into the EU in July, with 11,447 mt and
3,193 mt of product shipped respectively. Exports went
primarily to Turkey, Switzerland and China — between
1,500 mt and 2,500 mt each — whereas shipments to
Russia and Brazil ebbed to just below 500 mt. In Asia,
the market was assessed $15/mt lower week on week at
$1,910/mt CFR China and $10/mt lower at $1,925/mt CFR
Southeast Asia, as buyers were still hesitant amid upstream
volatility, especially in the styrene monomer market.
United States
The US acrylonitrile-butadiene-styrene domestic assessment
was unchanged for the week at 123 cents/lb delivered
railcar on Wednesday, as the market participants monitored
feedstock movements. ABS domestic pricing was heard from
the low to mid-120s cents/lb, with a source narrowing the
range to 123-126 cents/lb delivered. Sources said pricing
could drop in October if feedstocks, specifically styrene
and butadiene, continue to head lower. ABS demand was
characterized as stable and expected to remain that way
into October, while supply was available, sources said. In
feedstocks, styrene was assessed down a half-cent on the
week at 67.90 cents/lb FOB USG Wednesday as supply was
heard becoming longer in the market and demand was slow
with arbitrages to Europe and Asia still shut, sources said.
Upstream from styrene in benzene, the spot assessment
rose 8 cents on the week to 430 cents/gal FOB USG as
confidence was restored in the market following lower
prices. In other feedstocks, US spot butadiene was down
another 2 cents on the week to 56 cents/lb CIF USG. Early
expectations for the October US butadiene contract were
for a rollover to down settlement from September. US spot
ACN was assessed flat on the week at $1,980/mt FOB USG.
12
 PLATTS POLYMERSCAN
Asia
Acrylonitrile-butadiene-styrene was assessed $15/mt lower
week on week at $1,910/mt CFR China and $10/mt lower at
$1,925/mt CFR Southeast Asia, as buyers were still hesitant
amid upstream volatility, especially in the styrene monomer
market. Deals were reported by producers in the range of
$1,900-1,950/mt CFR China. There were some offers close
to $1,910/mt CFR China, while others were as high as
$2,030/mt CFR China. “Demand is so bad, many dealers
expect the ABS price to go down more,” a source with a
producer said. However, the feedback from the market was
mixed, and a source with another producer said: “ABS is
still OK, we can do deals, demand is more stable than for
polystyrene.” But prices were still in general lower despite
a rebound in feedstock prices, as buyers were unsure
whether SM prices would continue to rise. Week on week,
styrene monomer rose $41/mt to $1,524/mt CFR China on
Wednesday, while over the same period, butadiene rose
$20/mt to $1,530/mt CFR China. Acrylonitrile, however, fell
$10/mt week on week to $2,035/mt CFR Far East Asia on
Tuesday. Based on those feedstock prices and a conversion
cost of $280/mt, the breakeven price for ABS was estimated
at $1,932.70/mt, up about $25/mt week on week.
Polyethylene Terephthalate
Europe
The European polyethylene terephthalate market halted its
descent this week, as increased buy interest and expectations
of upcoming shutdowns supported an otherwise weak
market. Spot prices on the continent were assessed at
Eur1,055/mt ($1,366/mt), unchanged, and down by GBP5/
mt at GBP865/mt ($1,411/mt) in the UK, both on a delivered
basis. Contract prices remained unchanged too against a
cumulative decrease of only Eu10/mt in feedstock PX from
July to September. Recycled PET prices were also steady
at Eur890/mt and GBP735/mt. The double settlement of
feedstock paraxylene contract prices, achieved Wednesday,
was received without enthusiasm by the European PET
market. Sources said that the PET CPs for August and
September, which have already been invoiced on the basis
of preliminary feedstock numbers, might have to be revised.
“The PX settlement is very bad news. We have been blind
for a while without feedstock contract prices. Even in the
most pessimistic scenario we assumed that PX would be
not higher than Eur1,010/mt in August and Eur975/mt
in September. We made a total loss,” a producer said. PX
was fully settled at Eur1,025/mt FD NWE for August, up
by Eur40/mt from July, and at Eur985/mt for September,
down Eur30/mt. The August CP therefore was done at a
premium of almost 9% over average August spot prices — in
line with previous practice, but much higher than the spot/
contract differential in July. A trader said that he expected
that most contracts would have to be revised, especially
those with big volumes, as producers could not afford losing
their margin by such an amount in what had already been a
Copyright © 2014, McGraw Hill Financial
september 17, 2014
difficult market for European PET makers. “Those September
contracts which have not been agreed yet, might have to be
at a higher level to make up for August losses,” he also said.
There was still no settlement on MEG. Contract PET prices
had moved down at a higher pace from July, dipping from
Eur1,130/mt at the end of July to the current Eur1,090/mt.
In the spot market, sources were still reporting offers from
new European capacities at Eur1,045-1,050/mt, however,
it continued to be unclear whether these was in pursuit
of greater market share or whether they reflected material
with lower quality. “I heard it was off-spec [material offered]
to two sheet manufacturers,” a trader said. Another trader
believed though, that JBF and Lotte were undercutting
other producers and importers to gain market share. Lotte
and JBF were not available to comment on their pricing
policy. One trader also reported that he transacted last week
at Eur1,010-1,015/mt on a CIF basis, however, there were
no details on the quality or quantity of the material, or
delivery period. These indications were thus not taken into
consideration for the assessment. The rest of the market
appeared to be offered still higher, around Eur1,070-1,100/
mt. In the UK, the value was heard around GBP860-870/
mt amid slightly stronger sterling. Sources said that a
higher competitiveness due to euro weakness, expectations
that the contracts could be revised retrospectively due to
higher-than-expected feedstocks and anticipation of lower
availability amid four shutdowns in October had already led
to higher order volume. Regarding imports, European traders
believed that recent start-ups in Europe and stronger dollar
would mean thinning inflow of PET from abroad. The euro
dipped from $1.36 in July to around $1.296 mid-September,
making domestic supplies more competitive. However, as
Asian prices tanked, sources said, that this could sustain
the arbitrage window from the Far East anyway. The FOB
Northeast Asia marker was assessed at $1,245/mt, down by
$45/mt week on week. In Southeast Asia prices were still
higher, despite a bigger — $55/mt drop — at $1,285/mt on
FOB basis. In addition, there could be an uptick in supplies
from Turkey in coming months as well, where Polyplex’s
start-up was scheduled for November. Polyplex was not
available to confirm. According to the latest Eurostat data,
in July South Korea shipped 40,864 mt to the EU, Indonesia
14,666 mt, Egypt and Turkey, 12,464 mt and 10,194 mt
respectively. Surprisingly, there were still large imports from
Oman (14,425 mt), despite this year’s change in import
duty regime. R-PET: The recycled PET market was assessed
unchanged this week, however, there was an expectation
that it would follow the developments in the virgin market.
Hot-wash flake prices were currently at a 15-16% to the
virgin PET, which was still sufficient to make pellets, which
could compete with the virgin product. There were no fresh
indications heard in the spot market.
US
Spot polyethylene terephthalate prices were assessed at
1,565/mt DDP US West Coast (71 cents/lb), unchanged
week on week, as lower-priced Asian imports were readily
13
 PLATTS POLYMERSCAN
available, sources said. Sources pegged spot pricing at
70-72 cents/lb, with the lowest-priced material coming
to the US from China. Asian prices continued to decline
on the week, falling $44-55/mt, as buyers were heard
hesitant to take on product while feedstock paraxylene
and PTA pricing continued to move lower. September
domestic contracts were unsettled as the market continued
to monitor feedstock pricing. Sources said US contract
prices were under pressure to move lower, particularly with
paraxylene prices continuing to move lower. The US PTA
price had not been finalized for September as the market
awaited settlement of the US paraxylene contract, the key
variable in the formula-derived price. Spot PX was assessed
Wednesday at $1,180/mt FOB USG, down $10/mt week on
week and down $70/mt since the beginning of the month.
Market sources said this week that there were indications
production at BP’s Cooper River facility could return to
normal operation rates in the second half of October,
while other sources have suggest a restart could occur in
2-3 weeks. An August 11 fire at the 2.86 billion lb/year
South Carolina plant shut one of its two lines, resulting in
allocations for buyers. September US monoethylene glycol
contracts for fiber and PET makers were assessed Friday at
48.85 cents/lb ($1,077/mt) based on producer discounts
Copyright © 2014, McGraw Hill Financial
september 17, 2014
for large-volume buyers, up 0.8 cent/lb from August. There
were some market indications that contract levels could
remain around that level in October, as production-related
shortages and higher ethylene prices could prevent North
American producers from following Asia lower.
Asia
Asian polyethylene terephthalate on Wednesday slumped
$45/mt week on week to be assessed at $1,245/mt FOB
Korea, amid thin discussions ahead of the typical off-peak
season. In addition, raw material prices continued to fall
during the week. A bid for South Korean origin October
PET was heard at $1,240-1,250/mt FOB Korea, while
an offer for October was heard at $1,250-1,270/mt FOB
Korea. No deals were reported done. Many buyers have
taken a ‘wait-and-see’ approach, amid weakening raw
material markets — feedstock paraxylene and purified
terephthalic acid markets have been on a downward
trend recently, a South Korea-based trader said. Demand
for PET-based bottles also typically drops around this
time of the year, dampening PET demand further, he
added. FOB Southeast Asia prices also slumped $55/mt
week on week to be assessed at $1,285/mt FOB SEA. A
deal was heard at $1,280-1,290/mt FOB SEA.
14
 PLATTS POLYMERSCAN september 17, 2014

Polymer Feedstocks: Olefins

Polymer Feedstocks – Ethylene
Europe
Spot Friday Weekly Average
FD NWE (Eur/mt) 908.00-912.00 917.400-921.400
CIF NWE ($/mt) 1148.00-1152.00 1157.400-1161.400
CIF MED ($/mt) 1218.00-1222.00 –
Polymer Feedstocks – Ethylene Glycol Assessments (cont...)
US (¢/lb)
Spot Friday
FOB USG A/F* 45.00-46.00
Fiber Grade Monthly Contract Price (SEP): 48.60-49.10 FOB USG

Monthly Contract Price (Sep): 1150.00-1150.00 FD NWE (Eur/mt)
US (¢/lb)
Spot Friday Weekly Average
FD USG M1 SEP 71.750-72.250 70.350-70.850
FD USG M2 OCT 69.750-70.250 68.500-69.000
Posted Contract Price (SEP): NA-NA Delivered
Net Contract Price (SEP): NA-NA Delivered
Asia ($/mt)
Spot Friday Weekly Average
FOB Korea 1499-1501 –
CFR SE Asia 1499-1501 1503.0-1505.0
CFR NE Asia 1539-1541 1535.0-1537.0
Asian ethylene spot assessments reflect LC 0-30 days. CFR SEA = CFR Indonesia/Thailand.
Polymer Feedstocks – Propylene
Europe (Eur/mt)
Poly Grade Spot Friday Weekly Average
FD NWE 1059.00-1063.00 1059.000-1063.000
CIF NWE 1059.00-1063.00 1059.000-1063.000
Chem Grade Spot Friday Weekly Average
FD NWE 936.50-941.50 –
CIF NWE 906.50-911.50 –
Poly Grade Monthly Contract Price (Sep): 1105.00-1105.00
US (¢/lb)
Spot Friday Weekly Average
dlvd USG dlvd USG
Ref Grade 59.250-59.750 58.250-58.750
Poly Grade 69.250-69.750 –
Chem Grade 66.250-66.750 –
Asia ($/mt)
Spot Friday Weekly Average
CFR China 938-940 947.6-949.6
CFR SE Asia 941-943 (1) –
MEG CP Nomination (Sep) – CFR Asia
MEGlobal: 1180 Sabic: 1150 Shell: 1160
(1) CFR SE Asia = CFR Indonesia.Note: *A/F denotes anti-freeze grade Asian ethylene glycol
assessments are basis L/C 90 days.
Polymer Feedstocks – Butadiene
Europe
Spot Friday Weekly Average
FD NWE (Eur/mt) 884.00-888.00 884.400-888.000
FOB Rdam ($/mt) 1158.00-1162.00 1131.200-1134.800
Butadiene Monthly Contract FD NWE SEP: 955.00-955.00 (Eur/mt)
US (¢/lb)
Spot Friday
CIF USG 54.50-55.50
Monthly Contract Price (Sep) 56.00-62.00
Asia ($/mt)
Spot Friday Weekly Average
FOB Korea 1479-1481 1459-1461
CFR Taiwan 1539-1541
CFR SE Asia 1499-1501 (1)
CFR China 1529-1531 1509-1511
(1) CFR SE Asia = CFR Indonesia. *A/F denotes anti-freeze grade.

Poly Grade Contract Price (SEP): NA-NA Delivered Platts Global Ethylene Prices ($/mt)
Chem Grade Contract Price (SEP): NA-NA Delivered
Asia ($/mt)
1800
Spot Friday Weekly Average CFR FE Asia FD NWE FAS Houston
FOB Korea 1319-1321 1319.0-1321.0
CFR Taiwan 1329-1331 – 1600
CFR SE Asia 1254-1256 –
FOB Japan 1284-1286 –
CFR China 1369-1371 1369.00-1371.00
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 23-Apr 20-May 12-Jun 07-Jul 31-Jul 25-Aug 17-Sep
CIF NWE T2 (Eur/mt) 785.00-795.00
CIF NWE T2 ($/mt) 1016.00-1026.00
Notes: All olefin prices reflect assessments at close of previous Friday.
Monthly Contract Price (Sep) – (Eur/mt) NA-NA

Copyright © 2014, McGraw Hill Financial 15

 PLATTS POLYMERSCAN
Ethylene
Europe
European ethylene spot prices slipped this week to
Eur910/mt FD NWE, a low not seen since May 27,
tracing the fall in naphtha, despite exports to Asia,
sources said. Naphtha was assessed at $837/mt CIF NWE
Friday, compared to $858.25/mt a week ago. Three
export cargoes have been fixed to Asia in the last week,
as crackers struggled with plentiful supplies. FOB prices
were pegged at $1,150-1,200/mt for these cargoes. The
arbitrage remained open, with Asian prices climbing
further this week, the CFR Northeast Asia marker rising
$10/mt week on week at $1,540/mt Friday on tight
supplies. Domestically, a fall in naphtha prices spooked
polyethylene buying resulting in increased ethylene
supplies. A spot deal was heard at Eur930/mt FD NWE
on Tuesday, the buyer confirmed. By Wednesday, the
same buyer reported buying at Eur910/mt FD NWE.
More than abundant ethylene supplies had prompted
cracker operators to mull rate cuts, sources said.
“Cracker operators have quickly allowed the ethylene
spot prices to go down closer to cost of production on
marginal volumes so next step is probably cracker rates
to be trimmed,” a source said. Sources said the delay
in the restart of Ineos’ oligomers plant in Belgium had
added to spot availability. The Feluy plant, located
south of Brussels, which shut following a fire on July
28, will restart in October or November, sources said
Tuesday. Sources had expected the plant to restart in
August. The reason for the delay was not clear. The
site produces 35,000 mt/year of polyalpha olefins and
200,000 mt/year of linear alpha olefins. Ineos was not
immediately available to confirm. In other production
news, BASF began a turnaround at its No.1 220,000 mt/
year Ludwigshafen cracker in Germany Thursday. It is
expected to last until mid-October, BASF confirmed.
It was unclear if ExxonMobil Chemical’s 425,000 mt/
year steam cracker in Gravenchon, France had begun
maintenance. The cracker is scheduled to be down
for six weeks September-October. Exxon was not
immediately available for comment.
United States
US spot ethylene jumped 4 cents week on week, assessed
Friday at 71.75-72.25 cents/lb FD USG for September
delivery, itself a 29-month high. The assessment is at its
highest level since April 9, 2012, when it was at 74.125-
74.625 cents/lb FD USG, Platts data showed. One trading
source attributed the hike in pricing on continued thin
supply amid a number of production outages in the
US Gulf Coast. October deliveries marked a 3.5 cents/
lb increase for the week assessed at 69.25-70.25 cents/
lb FD USG. The climb in prices started on Monday, after
talks of ExxonMobil starting its 5-6 week turnaround at
its Baytown Olefins Plant in Baytown, Texas. A company
source with knowledge of operations confirmed the
Copyright © 2014, McGraw Hill Financial
september 17, 2014
planned maintenance but was unable to provide its exact
duration. “Planned maintenance is expected to continue
for the next several weeks, and we expect to meet our
contractual commitments,” the source said. ExxonMobil’s
Baytown Olefins Plant has an ethylene capacity of 960,000
mt/year. In markets, September was heard offered Friday
at 73.5-74 cents/lb Mont Belvieu Williams pipeline basis,
against bids heard at 71 cents/lb MtB Wms. October
was heard offered at 71-74 cents/lb MtB Wms, against
bids heard at 68 cents/lb MtB Wms. One market source
attributed the tight supply on strong demand from
downstream markets and low producer inventories.
September was heard traded on Thursday and Wednesday
at 71 cents/lb MtB Wms and 70.5 cents/lb MtB Wms.
On Tuesday, after news of the ExxonMobil’s turnaround
spread through the market, September was heard traded
four times in the morning at 70 cents/lb MtB Wms and
once at 70 cents/lb MtB-other. September and October
were heard traded at 70.25 cents/lb MtB Wms and 68
cents/lb MtB Wms on Tuesday afternoon. September was
heard traded three times on Monday at 68.75-69.25 cents/
lb MtB Wms. In contracts, a two-month settlement for
August and September appeared more than likely sources
said, as the initial August settlement of a 1.75 cents/lb
increase from July was yet to materialize market-wide,
according to sources. The US ethylene net transaction
price for August was starting to settle on August 3 at
51.25 cents/lb, which would bring contract prices to
their highest since an April 2012 level of 55.25 cents/lb,
according to Platts data. Downstream, HDPE availability
remained limited for export with prices again talked at
levels which made moving product increasingly difficult,
even into Central and South America, sources said.
“It’s difficult to see US pricing working anywhere,” one
US-based trader source said. Domestic contracts remained
unsettled for September, with producers pushing for a 3-4
cents/lb increase that most market sources expected to see
implemented by month’s end because of strong domestic
demand and increasing spot ethylene.
Latin America
Braskem, Brazil’s main olefins producer, last weekend
began a 35-day turnaround at its petrochemical complex
in Sao Paulo state. The complex, which is anchored by a
gas- and naphtha-fed ethylene unit capable of producing
700,000 mt/year, is scheduled to restart October 10, the
company said in an email. No spot trades, bids or offers
were heard from Brazil this week. Some downstream
market participants in Brazil and neighboring countries
anticipated lower availability of polyethylene because of
the turnaround, and Braskem appeared to have hinted as
much in at least one e-mail sent to customers. A Brazilian
trader this week indicated his company was importing
to supply the domestic market during Braskem’s
turnaround. Regional market participants tracking key
international markers saw European ethylene spot prices
slip Eur27/mt week on week to Eur910/mt FD NWE
16
 PLATTS POLYMERSCAN
($1,178/mt), a 14-week low. In the US, spot ethylene hit
29-month highs, up 4 cents/lb ($88/mt) for the week to
72 cents/lb ($1,587/mt) FD USG.
Asia
Asian ethylene was mixed this week with the CFR
Northeast Asia marker rising $10/mt week on week,
but flat day on day at $1,540/mt Friday, while the CFR
Southeast Asia marker edged down $5/mt day on day
and week on week to $1,500/mt. An European cargo
was heard fixed to South Asia at $1,470-1,480/mt CFR
early this week. Several traders were trying to bring
in European material, but the high freight rates have
been a major obstacle. Sources noted that larger 9,000
mt vessels have been taken up to ship LPG and only
smaller vessels of around 4,000-6,000 mt were left to ship
ethylene. Offer indications for H1-October-arrival cargoes
were heard at $1,560-1,570/mt CFR Northeast Asia with
buying indications in the low-$1,500/mt CFR Northeast
Asia. Meanwhile, a China-origin September shipment
was being offered on a formula basis for local sale. For
October, there were around four cargoes available for
sale in the Chinese domestic market. In Southeast Asia,
an end-user issued a tender seeking 3,000-5,000 mt
of ethylene for H1 October arrival but this was later
withdrawn as the company decided to cut plant runs.
Offer indications were heard at $1,525-1,550/mt CFR
Southeast Asia, while buying indications were in the
high-$1,400s/mt CFR Southeast Asia. The wide bid-offer
spread meant there was little discussion. In plant news,
Saudi Arabia’s Jubail United Petrochemical Company
plans to shut its 700,000 mt/year No. 2 monoethylene
glycol plant in Q4 for a reactor change, a source close to
the company said Friday. The plant is situated at Al-Jubail
in Jubail Industrial City. JUPC has a 700,000 mt/year
No.1 MEG plant at the same location, which was taken
offline in early July for maintenance. The No.1 MEG unit
was at the end of August.
Ethylene Glycol
Europe
European monoethylene glycol prices were unchanged this
week, closing at Eur795/mt FCA NWE, as market participants
remained at an impasse awaiting contract price negotiations.
Demand was flat, as the antifreeze inventory remaining from
last year’s mild winter reduced buying appetite. Combined
with that, sellers were unwilling to reduce offer levels until
the contract price was concluded, one trader said. There was
also an expectation among some buyers that prices would
drop which hampered buying activity, one producer said.
PET buyers were bearish with summer, which typically sees
stronger demand, coming to an end, he added. In the DEG
market, prices fell Eur15 to Eur1,110/mt FCA NWE due to
wide availability of product amid poorer seasonal offtake
from the construction sector, one trader added.
Copyright © 2014, McGraw Hill Financial
september 17, 2014
United States
US monoethylene glycol pricing was talked mostly stable
for the week as soft demand helped to offset production-
related shortages, market sources said. US spot MEG prices
were assessed Friday at 45.00-46.00 cents/lb FOB USG,
unchanged week on week. Multiple sources pegged prices
in the 45-46 cents/lb range, with limited barge business
heard conducted along the same level. “I expected there to
be a whole lot more activity in the market, but it doesn’t
seem to be the case,” a US-based trader source said. While
there had been some expectations that prices could follow
Asia lower — particularly with lower demand from PET
makers because of ongoing PTA supply issues — sources
said that has not been the case. Higher ethylene prices have
been one factor, as it was difficult for derivatives producers
to offer lower prices with feedstocks at increasingly high
levels, sources said. US spot ethylene reached a 29-month
high Friday, assessed at 71.75-72.25 cents/lb FD USG,
following tight supply stemming from ongoing production
outages, market sources said. US Gulf inventories have also
been held down by multiple production-related factors.
Sources said LyondellBasell had extended its ethylene
oxide force majeure event because of additional production
issues at the Bayport, Texas, facility. Multiple sources said
the company’s MEG allocations had been lowered to 10%,
with EO at 0% and DEG and TEG both at 50%. Company
confirmation was not available Friday. Sources also said
lower-than-anticipated production in Mexico and other US
producers preparing for fall turnarounds were contributing
to a tighter market. September US MEG contracts for fiber
and PET makers were assessed Friday at 48.85 cents/lb
($1,077/mt) based on producer discounts for large-volume
buyers. There were some market indications contracts
could remain around that level in October, as the factors
impacting spot could also prevent producers from following
Asia lower. MEGlobal on Friday nominated its October ACP
for MEG at $1,120/mt CFR main port, down $60/mt from
September, according to a company notice.
Asia
Asian monoethylene glycol fell a sharp $29/mt week on
week to be assessed at $939/mt CFR China and $942/mt
CFR Southeast Asia Friday amid short-selling and falling
futures. Traders continued to be spooked by bearish
sentiment and were heard to be selling more prompt
arrival cargoes, as well as short- selling cargoes for first
half October. H2 September deal done levels were heard
falling from $959/mt CFR China Tuesday to $938-939/mt
Friday, while the H1 October deal level fell from $965/
mt CFR China to $943/mt over the same period. Monday
was a public holiday in China. Adding further pressure to
physical prices were falling MEG futures, with September
MEG futures falling from Yuan 7,280/mt Tuesday to Yuan
6,974/mt Friday on the Huaxi Commodity Exchange.
Chinese domestic MEG prices also slipped throughout the
week to be assessed at Yuan 6,880/mt Friday, equating to
$906/mt on an import parity basis and down Yuan 230/
17
 PLATTS POLYMERSCAN
mt from a week ago earlier. MEG inventory in East China
was reported at 915,000 mt, dipping from 919,000 mt last
week, market sources said. In plant news, Saudi Arabia’s
Jubail United Petrochemical Company, or JUPC, plans to
shut its 700,000 mt/year No. 2 MEG plant in Al Jubail in
the fourth quarter for a reactor change, a source close to
the company said Friday. The company’s 700,000 mt/year
No. 1 MEG plant at the same location was taken offline
in early July for maintenance on its reactor and restarted
at end August. JUPC is a wholly owned subsidiary
of Saudi Basic Industries Corp., or Sabic. Meanwhile
operating rates were reported at around 80% of capacity
for SHARQ Eastern Petrochemical Co.’s four MEG units at
Al Jubail with a total capacity of 2.1 million mt/year.
Propylene
Europe
The turnaround season coupled with length in ethylene
limited propylene production, helping it to shrug off
the naphtha price fall this week. Propylene was assessed
unchanged on the week, with polymer grade at Eur1061/
mt FD NWE and chemical grade at Eur939/mt FD NWE.
Naphtha was assessed at $837/mt CIF NWE Friday,
compared to $858.25/mt a week ago. Sources said a
cracker maintenance season in Europe and Turkey, along
with plentiful supplies in ethylene, had limited cracker
production. More than abundant ethylene supplies had
prompted cracker operators to mull rate cuts: “Cracker
operators have quickly allowed the ethylene spot prices
to go down closer to the cost of production on marginal
volumes so the next step is probably cracker rates to be
trimmed,” an ethylene buyer said. Ethylene is trading
at Eur910/mt FD NWE, a low not seen since May 27.
Meanwhile, Europe was amid a maintenance period,
with about 7.7% of cracker capacity expected to be in
maintenance in September-October. Petkim began a 105-
day maintenance period July 21 to upgrade cracker capacity
by 13% to 585,000 mt/year. BASF began a turnaround at its
No.1 220,000 mt/year Ludwigshafen cracker in Germany
on Thursday. It is expected to last until mid-October, BASF
said. It was unclear if ExxonMobil Chemical’s 425,000
mt/year steam cracker in Gravenchon, France, had begun
maintenance. The cracker is scheduled to be down for six
weeks in September-October. Exxon was not immediately
available for comment. In addition, two other crackers are
expected to begin maintenance at the end of September.
OMV’s 450,000 mt/year steam cracker at Burghausen,
Germany, is to be in turnaround until early November. And
Shell’s 2A 260,000 mt/year cracker at Wesseling, Germany,
is also scheduled for a six-week maintenance beginning in
October. In the domestic market, one deal was done this
week at October monthly contract price less 4% FD NWE
for October delivery. September prices were pegged at 4-5%
less the September contract price of Eur1,105/mt FD NW,
equivalent to Eur1,050-1,061/mt FD NWE. In the chemical
Copyright © 2014, McGraw Hill Financial
september 17, 2014
grade market, a buyer who reported a deal at September
CP less 15% or Eur939/mt FD NWE last week, said that the
number remained repeatable though the seller said that
discounts were narrowing to single digits.
United States
US spot refinery-grade propylene gained 2 cents week on
week, assessed Friday at 59.25-59.75 cents/lb delivered,
amid declining inventories and polymer-grade propylene
prices. The increase follows five consecutive weekly decrease
in inventories of propylene for non-fuel use, according US
EIA data released Wednesday. Propylene stocks declined
103,000 barrels to 3.545 million barrels in the week ending
on September 5, EIA data showed. No RGP deals or offers
were heard throughout the week, while buying interest
gained 2.5 cents throughout the week to reach 59 cents/
lb MtB-pipe for September. Spot PGP declined a half-cent,
assessed Friday at 69.25-69.75 cents/lb FD USG, following
October and November PGP bids at 69 cents/lb MtB-pipe
and 68.625 cents/lb MtB-pipe, respectively, which followed
three September and one October deals heard on Thursday
at 69.5 cents/lb MtB-pipe and 69.25 cents/lb Cents/lb
MtB-pipe, respectively. September was heard traded on
Monday and Wednesday at 70 cents/lb MtB-pipe. One more
September deal was heard on Wednesday at 69.5 cents/lb
MtB-pipe. In contracts, initial settlements for US propylene
contract prices for September called for a rollover from
August, market sources said Wednesday. PGP was settling
at 72.5 cents/lb delivered and CGP at 71 cents/lb delivered,
flat to August contracts, sources with two buyers confirmed.
If the settlement is accepted marketwide, the price would
fall on the higher end of participants’ expectations, who
said the July contract price could decrease as much as
1-cent. One market source said that the flat settlement was
anticipated, as the 5-cents/lb increase seen in August drove
some of the demand out of the market and polypropylene
demand declined during the month. The initial settlements
were in line with a nomination by Shell Chemical that
called for a rollover earlier in the month, sources said.
ExxonMobil Chemical was heard nominating September at
a 1-cent/lb increase in late August, sources said.
Latin America
Trading activity was limited in the region, with no exports
out of Brazil and no imports into Mexico or Colombia
heard by Friday. In Mexico, Pemex Petroquimica said
operations at the Salina Cruz complex were normal, a
week after a source with knowledge of company operations
said a compressor issue halted production at the refinery.
Domestic pricing was last heard at 1,349/mt for chemical-
grade and $1,593/mt for polymer-grade propylene.
Downstream, Mexico City-based Basell Poliolefinas said it
plans to increase October polypropylene prices by 3 cents/
lb ($66/mt) in addition to any change resulting from
the change in the US polymer-grade propylene contract
price from September to October. In Argentina, the
polypropylene market remained bearish, with one producer
18
 PLATTS POLYMERSCAN
source saying sectors including automotive, construction
and durable goods were being particularly affected by the
weak economy. Regional participants keeping an eye on
the international markets saw the Northwest European
propylene were stable week on week at Eur1,061/mt
($1,374/mt) FD NWE despite lower feedstock naphtha
prices. In the US, spot polymer-grade propylene fell 0.50
cents/lb ($11/mt) to 69.50 cents/lb ($1,532/mt), while
contract pricing for September began to settle this week at a
rollover at 72.50 cents/lb ($1,598/mt).
Asia
The CFR China propylene marker was assessed flat week
on week at $1,370/mt Friday as buyers retreated. A deal
was heard done by Japanese producer JX at $1,380/mt CFR
China Thursday and $1,378/mt CFR China Friday. But the
buyer and terms could not be confirmed. Some sources said
supply in South Korea and Japan was limited. But a buyer
said some producers from the two countries are “desperate
to sell.” Offers were heard at $1,375-1,380/mt CFR China,
the same source said. Deals were heard concluded at $1,365-
1,370/mt CFR in eastern China, while northern China deals
were heard done higher around $1,375/mt CFR. Market
participants across the region said sentiment remained
very weak. Ningbo Haiyue New Material’s propane
dehydrogenation, or PDH, plant in China’s northeastern
Zhejiang province has started selling in the domestic spot
market. The FOB Korea propylene marker was assessed at
$1,320/mt Friday, also unchanged week on week. A supplier
said, “I think this is still a reasonable level.” But a buyer
said, “We want to see [what will happen] next week, so we
are delaying discussion.” A deal was heard done this week
at $1,320/mt FOB Korea, but this could not be immediately
confirmed. In other parts of the region, a Chinese buyer
was heard to have purchased one lot of propylene from
PTT. An end-user in Taiwan said state-owned CPC Corp.
has asked them to “provide demand for the fourth quarter.”
Taiwan’s Formosa lowered its No. 2 naphtha-fed steam
cracker runs in Mailiao from to 60-70% of capacity early
this week, from 100%, due to a technical glitch, a company
source said Wednesday. The No. 2 unit is able to produce
515,000 mt/year of propylene.
Butadiene
Europe
European butadiene prices were up on the week by $35/mt
to $1,160/mt pulled up by rising Asian prices, sources said.
Flat domestic demand drove European producers to eye
exports. The arbitrage to Asia was thin, however, due to
logistic issues, though some European cargoes offered. Two
spot cargoes from Europe — one 6,000 mt and another
2,300 mt — were offered into Asia for end-September/
early October loading. But their offer levels were also
seen to be high at $1,600/mt CFR China, due to limited
vessel availability. The CFR China butadiene marker was
Copyright © 2014, McGraw Hill Financial
september 17, 2014
assessed at $1,530/mt Friday, up $30/mt on the back of
tightness. Freight rates were pegged at Eur350-400/mt for
ARA to China/Korea, sources said. In Europe, a producer
reported selling to a trader at $1,160/mt CIF ARA, H2
September loading for 1,000 mt. “Talking to traders this
week, they’ve struggled to put the volume together,” he
said. In production news, BASF started its new 155,000
mt/year butadiene extraction plant in Antwerp, Belgium,
Tuesday. More than abundant ethylene supplies had
prompted cracker operators to mull rate cuts, sources said.
“Cracker operators have quickly allowed the ethylene
spot prices to go down closer to cost of production on
marginal volumes so next step is probably cracker rates
to be trimmed,” a source said. In other production news,
BASF’s No.1 220,000 mt/year Ludwigshafen cracker in
Germany began maintenance Thursday. It is expected to
last until mid-October. BASF confirmed. It was unclear if
ExxonMobil Chemical’s 425,000 mt/year steam cracker in
Gravenchon, France had begun maintenance. The cracker
is scheduled to be down for six weeks September-October.
Exxon was not immediately available for comment. BASF
started its new 155,000 mt/year butadiene extraction plant
in Antwerp, Belgium Tuesday. Despite the start of the
plant, crude c4 values fell this week. Most sources pegged
the factor at 0.95-1.00 to naphtha. A 3,500 mt cargo from
Finland which was on the market since last week, was sold
this week, sources said. The raffinate-1 factor was pegged
at 1.19 down from 1.21 a week earlier. One producer who
reported a selling a 1,000 mt barge to an end-user at 1.19,
described the market as balanced. Naphtha was assessed
at $837/mt CIF NWE Friday, compared to $858.25/mt a
week ago. The Northwest European MTBE spot price was
assessed at $1,109/mt FOB ARA Friday, a rise of $4.50/mt
from the previous assessment of $1,104.50/mt.
United States
US spot butadiene continued its decline, losing 3 cents on
the week, assessed Friday at 55 cents/lb CIF USG. Sources
talked continued weak demand and ample supply, as reasons
behind the decline. The assessment is at its lowest since
November 27, 2013, when it was at 53 cents/lb CIF USG,
according to Platts data. No import bids, offers or deals
were heard this week as the arbitrage from Europe and Asia
remained closed, sources said. Market sources pegged prices
in the mid-50s cents/lb, with a trader source narrowing the
range to 55-56 cents/lb CIF USG given the weak demand and
ample supply. Sources said there was not an import market
currently given that a netback from Europe would need to be
at least higher than 61 cents/lb CIF USG. European butadiene
rose $30/mt on the week to an assessment at $1,160/mt FOB
Rotterdam Friday. Sources said the market was looking at a
possible export arbitrage opening up to Asia. Butadiene prices
in Asia were assessed $30/mt higher on the week as well at
$1,480/mt FOB Korea and $1,530/mt CFR China. Supply in
Asia was described as tight amid plant shutdowns. To make
the arbitrage work to Asia, sources said US prices would
need to be at or below 50 cents/lb FOB USG, with one trader
19
 PLATTS POLYMERSCAN
source saying prices would need to be closer to 45 cents/lb.
Along with prices needing to be lower, sources said freight
was difficult to find and freight pricing from the US to Asia
was heard at $400-$450/mt. In the US domestic market,
September offers were heard as low as 55 cents/lb FOB pipe/
barge/rail this week, with a September barge deal heard
done midweek at 50 cents/lb FOB. Offers for September were
heard at 55 cents/lb following the deal. October offers were
heard as low as 58 cents/lb before rising Friday to 62 cents/
lb. US butadiene supply was described as long, with little
buying interest. Sources did not expect the fundamentals
to in the fourth-quarter, with several sources adding that
demand might not improve until the beginning of next
year as nobody downstream needs product. Downstream
demand in the styrene-butadiene rubber and SBS sectors
was quiet, sources said, while downstream demand in the
acrylonitrile-butadiene-styrene market was stable, sources
said. In contracts, sources said October contracts would
likely fall from September, but the extent of the anticipated
drop was mixed, with a source saying the decline could be
as little as 3 cents, while another source said there could
be a “big” drop in contracts. The September US butadiene
contract price settled 4 cents/lb ($88/mt) lower than August
at a 56-62 cents/lb ($1,235-$1,367/mt) split, sources said.
ExxonMobil settled 4 cents/lb lower than August at 62 cents/
lb, and LyondellBasell, Shell Chemicals and TPC Group
also settled down 4 cents/lb at 56 cents/lb, sources said.
Producer confirmation on the settlements were unavailable
immediately. The settlements are void of any discounts or
adders that producers might include, sources said.
Latin America
Trading activity remained limited in the region this
week, with no spot trades heard and one 1,900-mt cargo
originating in Salvador, Brazil, unloaded at Mexico’s
Altamira, per port records. Pricing information was not
available at the time of publication. Mexico is a regular
importer of butadiene, with Brazil a common supplier of
the olefin. Braskem, Brazil’s main producer and exporter,
is expected to have its production limited by a 35-day
turnaround of its Sao Paulo steam cracker that began
September 6. The plant has a butadiene production capacity
of 90,000 mt/year. For market participants in Brazil and
elsewhere tracking international markets, spot butadiene
in the US fell 3 cents/lb ($66/mt) on the week to 55 cents/
Copyright © 2014, McGraw Hill Financial
september 17, 2014
lb ($1,213/mt) CIF amid weak buying interest, sources there
said. In Northwest Europe, pricing was $35/mt higher on
the week at $1,160/mt FOB Rotterdam. Latin America-based
market players keep a close eye on both the US and the
Northwest European levels to base regional pricing.
Asia
The Asian butadiene market rose $30/mt week on week
across the regions, driven by limited supply amid plant
shutdowns. The FOB Korea butadiene benchmark was
assessed at $1,480/mt, while the CFR China butadiene
marker was assessed at $1,530/mt Friday. There are some
planned and unplanned plant shutdowns in Asia. In South
Korea, Yeochun Naphtha Cracking Center plans to shut
its No. 3 steam cracker in Yeosu from September 22 for
one month of annual maintenance. The cracker is able
to produce 470,000 mt/year of ethylene and 240,000 mt/
year of propylene. In Taiwan, Formosa cut run rates at its
162,000 mt/year No. 2 steam cracker in Mailiao to 60-70%
from 100% earlier this week. In Japan, Idemitsu Kosan
shut its naphtha-fed steam cracker in Tokuyama from this
Tuesday for annual maintenance. The cracker, which is able
to produce 623,000 mt/year of ethylene and 450,000 mt/
year of propylene, will be shut until November. Trading
sources said there were some spot butadiene cargoes still
available for October loading, but selling indications were
heard at $1,500/mt FOB Korea/Southeast Asia — which
was considered high. There were some European cargoes
offered in Asia as the arbitrage window is seen to be open.
Two spot cargoes from Europe — one 6,000 mt and another
2,300 mt — were offered into Asia for end-September/
early October loading. But their offer levels were also seen
to be high at $1,600/mt CFR China, due to limited vessel
availability. Buyers were reluctant to accept such high offer
levels and expected them to fall citing rising butadiene
supplies in Europe. BASF’s new butadiene extraction plant
in Antwerp, Belgium, is in start-up mode. BASF began
construction of the plant in 2012. It already operates a
butadiene extraction plant at its site in Ludwigshafen,
Germany, with a production capacity of 105,000 mt/year.
Bids for spot butadiene cargoes were heard at $1,500/mt
CFR China this week. Bids did not increase further due to
weaker downstream rubber market. On Friday, the CFR
Northeast Asia styrene-butadiene-rubber 1520 price dropped
$10/mt week on week to be assessed at $2,010/mt.
20
 PLATTS POLYMERSCAN
Polymer Feedstocks: Aromatics
Paraxylene
Europe
European paraxylene 5-30 days forward benchmark was
assessed at $1,180/mt FOB ARA Friday, unchanged from
Thursday. The benchmark held on to Thursday’s number
as a considerable rise in prices in Asia and an erosion of
demand on the US East Coast balanced each other. On a
week on week basis, PX prices in Europe dropped $10/mt.
In Asia, PX rebounded $24.50/mt day on day to $1,239/
mt FOB Korea and $1,262/mt CFR Taiwan/China Friday
as several traders and end-users placed active bids to
cover their short positions. In addition, China’s Tongkun
restarted its 1.5 million mt/year No.1 purified terephthalic
acid unit at Zhapu after a month-long shutdown and was
heard running the unit at 90% of capacity. This raised
anticipation of a revival in PTA demand globally and
supported sentiment for PX prices. However, European PX
found no active buyers in the US, even though early in
the week there were strong expectations of an invigoration
of demand in the country due to expected startup of BP’s
Cooper River-based PTA line. In the US overnight, PX
slipped $10/mt day on day to be assessed Thursday at
$1,180/mt FOB US Gulf Coast. Bearish feedstock isomer-
mixed xylene that dropped $14/mt week on week to be
assessed at $1,055/mt FOB ARA Friday pressured PX prices.
Weaker economic sentiment in Europe on upcoming
Scottish independence vote also weighed on PX demand.
United States
US spot paraxylene prices fell $45/mt on the week to
$1,195/mt FOB USG because of weak demand, as Asia
moved lower and supply was ample, sources said. BP’s PTA
production issue kept the market quiet this week, source
said. Production could come back online as early as 2-3
weeks, sources said, but other sources said production
could return to normal levels around the second half of
October. There continued to be inquiries to send PX to
the Far East despite an unattractive arbitrage as a result
of heavier supply, sources said. Asian spot PX prices fell
$16/mt week on week, assessed Friday at $1,239/mt FOB
Korea and $1,262/mt CFR Taiwan/China. The MX-PX
spread was around $150/mt to end the week, based on
Platts data, which sources considered a healthy spread.
In downstream markets, sources continued to describe
PET demand as solid and production was limited because
of tight PTA supply. In contracts, the August US PX CP
settled down 1.25 cents/lb ($28/mt) from July to 68.5
cents/lb ($1,510/mt), sources said.
Asia
Asian paraxylene rebounded $24.50/mt day on day to
$1,239/mt FOB Korea and $1,262/mt CFR Taiwan/China
Friday on the back of short-covering. But PX was down $16/
Copyright © 2014, McGraw Hill Financial
september 17, 2014
Polymer Feedstocks – Aromatics
Weekly Average Spot*
Styrene FOB Korea ($/mt) 1470.50-1471.50
Styrene FOB ARA ($/mt) 1513.90-1514.90
Styrene FOB USG (cts/lb) 68.10-68.60
Paraxylene FOB Korea ($/mt) 1233.80-1234.80
Paraxylene FOB Rdam ($/mt) 1186.00-1188.00
Paraxylene FOB USG ($/mt) 1200.00-1210.00
Monthly Contract Price
Styrene Barge FOB ARA CP (Eur/mt) (Sep) 1390.00
Styrene Truck FCA Rdam CP (Eur/mt) (Sep) 1398.00
Styrene FOB USG (cts/lb) (Sep) 72.00-73.00
Paraxylene CFR Asia Average (Sep) NA
Paraxylene FD NWE (Eur/mt) (Sep) NA
Paraxylene FOB USG (¢/lb) (Aug) 68.50-68.50(Q3)#
* Average prices for week ending previous Friday. # US PX CP are typically settled retroactively,
prices refer to most recent settlement. To convert Cts/lb to $/mt, multiply by 22.046.
NWE Styrenics Prices
1800
FD NWE GPPS (€/mt)
Styrene FOB Rotterdam ($/mt)
1700
1600
1500
1400
1300
30-Apr 28-May 25-Jun 23-Jul 20-Aug 17-Sep
Notes: All aromatics prices reflect assessments at close of previous Friday.
mt week on week, due to heavy selling pressure for much
of the week. During the Platts Market on Close assessment
process, an off-screen bid for H1 October was heard at
$1,260/mt CFR Taiwan/Ningbo/Dalian, against an offer for
the same laycan at $1,270/mt CFR Taiwan/Ningbo/Dalin
for Asia origin. A swap offer for H1 October/H2 October
was heard at plus $3/mt CFR Taiwan/Ningbo/Dalian on
telegraphic transfer or T/T basis. For October, a bid was
heard at $1,260/mt CFR Taiwan/Ningbo/Dalian against
offers for the same cargoes at $1,270/mt CFR Taiwan/
Ningbo/Dalian, both for Asia origin. Upstream, Asian
isomer-grade mixed xylenes were assessed flat day on day
at $1,034/mt FOB Korea and $1,054/mt CFR Taiwan Friday
amid a standoff between buyers and sellers, with no bids
or offers registered during the MOC process. Downstream,
China’s Tongkun restarted its 1.5 million mt/year No. 1
purified terephthalic acid unit at Zhapu in early September,
21
 PLATTS POLYMERSCAN
a source close to the company said Wednesday. The unit
had been shut since early August and was now operating
at around 90% of capacity, the source added, up from 70%
before the shutdown. Asian isomer-grade mixed xylene
was assessed flat day on day at $1,034/mt FOB Korea and
$1,054/mt CFR Taiwan Friday amid a standoff between
buyers and sellers, with no bids or offers registered during
the Platts Market on Close assessment process. The CFR
Southeast Asia marker fell $45/mt over the same period
to be assessed at $1,060/mt amid an oversupply in the
region. Neither of the main applications for isomer-MX,
making paraxylene and blending into gasoline, were
faring well at present, buyers said. The gasoline market
was weak, and gasoline blenders in China were opting to
blend solvent rather than isomer-MX as it was cheaper,
even after factoring in the higher import duty of 3%
versus isomer-MX’s 2%, traders said. Sellers said an uptick
in PX prices Friday provided some support to isomer-MX
prices, but noted demand in Asia has been weak for some
time, prompting even standalone PX producers to sell off
feedstock isomer-MX. In Southeast Asia, where cargoes
typically command a premium of up to $26/mt to CFR
Taiwan prices based on freight differentials from South
Korea to the two markets, the gap has shrunk to $6/mt due
to the surplus of supply in Southeast Asia. The excess has
prompted spot cargoes from Thailand and Singapore to be
offered to China. Inventory in East China rose 14% week
on week to 65,000 mt and in South China fell by a third to
4,000 mt, although market observers said the low inventory
in the south was not spurring demand. Participants in
China said deals had been concluded this week at $1,050-
1,067/mt CFR China with 90 days’ letter of credit, which
would equate to $1,145-1,060/mt CFR East China on a
30-day credit note. The price spread between isomer-MX
and solvent-MX was around $45/mt Friday, well below the
typical range of $70-100/mt, traders said.
Styrene
Europe
Northwest European styrene monomer spot prices gained
$4.50/mt Friday to an assessment of $1,500/mt FOB ARA,
as prices followed an uptick in domestic benzene prices
that was influenced in turn by strong gains in morning
trade in the US. The benzene spot price was assessed at
$1,293.50/mt CIF ARA Friday, up by $14.50/mt on the day.
The strengthening of styrene and benzene prices Friday
bucked a so-far downward trend for September. Styrene
and benzene have shed $70/mt and $81/mt respectively
since the start of the month, and sources remained bearish
given persistently weak demand for styrene derivatives such
as EPS and PS. “Units are being shut down for economic
reasons in the US, it’s turnaround season in Asia, and we
have outages in Europe,” said a source. “The supply side
globally will see severe tightening but it means nothing
[for prices in Europe] because there’s no demand.” Bid-
Copyright © 2014, McGraw Hill Financial
september 17, 2014
offer indications early in the day were heard in the range
of $1,470-1,495/mt FOB ARA for September-loading barges,
but by the afternoon as US benzene trade opened with
strong gains, bids had come up to $1,490/mt with no
offers heard. No trades were reported throughout the day.
Overnight in the US there was also a depressed picture for
styrene. US Gulf spot styrene fell 0.40 cents to a two-year
low of 68 cents/lb ($1,499/mt) FOB USG Thursday, on lower
feedstock benzene which was itself at a 10-month low.
Whereas in Asia, the styrene CFR China marker rebounded
$22/mt day on day and $10/mt week on week to be
assessed at $1,515/mt, supported by a drawdown in China’s
SM inventory, turnarounds and short-covering.
United States
US spot styrene continued its downward trend this week,
falling 0.55 cent for the week to 68.15 cents/lb FOB USG
Friday. The assessment dropped to its lowest level in two
years on Thursday at 68 cents/lb FOB USG, according to
Platts data. Thursday’s assessment was at its lowest level
since September 5, 2012, when it was at 67.50 cents/
lb FOB USG, Platts data showed. No firm deals, bids
or offers were heard throughout the week. Arbitrage
opportunities to Europe and Asia remained closed this
week, with US product needing to be less than 66 cents/
lb FOB USG to go to Europe and less than 64 cents/lb
FOB USG to work to Asia, according to Platts data. Most
US producers have been running at reduced rates due to
poor margins, stemming from high feedstocks benzene
and ethylene prices. Westlake took down its Lake Charles,
Louisiana, styrene plant in mid-August for 4-6 weeks,
sources said. Producer confirmation on the shutdown was
unavailable. In other production news, Americas Styrenics
declared force majeure on all polystyrene and styrene
sales, effective August 1, according to separate letters the
company sent to customers. Americas Styrenics’ lone
styrene facility in the US is located in St. James, Louisiana,
with a capacity of 2.1 billion lb/year. Americas Styrenics
cited limited feedstock ethylene supply as a reason for the
force majeure declarations. Styrolution will take down its
1.7 billion lbs/year Bayport, Texas, styrene plant at the end
of September for planned maintenance and expected to be
restarted in early November, a company source said at the
end of August. In feedstocks, benzene was down 20 cents
for September at an assessment of 421 cents/gal FOB USG.
Spot ethylene was assessed at 72 cents/lb FD USG Friday, a
rise of 4 cents on the week. Variable costs for styrene were
estimated as low as 63.20 cents/lb and as high as 74.60
cents/lb, according to Platts data Friday.
Asia
Asian styrene monomer rose $22/mt day on day and $10/
mt week on week to be assessed at $1,489/mt FOB Korea
and $1,515/mt CFR China Friday. Factors supporting spot
prices included a drawdown in China’s SM inventory,
turnarounds and short-covering. A couple of deals were
heard Friday for October cargoes at $1,510/mt CFR China.
22
 PLATTS POLYMERSCAN
Afterward, the price level rose, with a bid heard at $1,515/
mt CFR China. November SM was firmer as well, with a bid
heard at $1,505/mt CFR China. China domestic SM prices
were firmer on decreasing inventory. A bid and offer were
heard at Yuan 10,700/mt against Yuan 10,750/mt. East
China SM inventory was heard at 135,200 mt, down 9.9%
Copyright © 2014, McGraw Hill Financial
september 17, 2014
week on week. In plant news, China’s Donghao will shut
its 190,000 mt/year styrene monomer plant at Changzhou
in eastern China’s Jiangsu province on Saturday for a
scheduled two-month turnaround, several market sources
said Friday. The maintenance plan could not be directly
confirmed with the company.
23
 PLATTS POLYMERSCAN september 17, 2014

Polymer Feedstocks: Intermediates

Purified Terephthalic Acid Polymer Feedstocks – Intermediates

Europe Weekly Spot

There were no active trade discussions heard in the PTA
market this week. The PTA contract for August did not
settle due to the absence of the full PX contract settlement.
United States
The September US PTA price had not been set Friday as
the US paraxylene contract — the key variable used to
set the formula-derived price — had not been settled.
Market sources have said it was too early in the month
to get a clear picture on where the PX contract will
settle, though trends in the Asian and US spot markets
could suggest a decrease. US spot PX was assessed
Friday at $1,195/mt FOB USG, down $45/mt week on
week. The assessment was up $15/mt from the previous
day, when PX was assessed at $1,180/mt FOB USG. In
production news, market sources said this week that
there were indications production at BP’s Cooper River
facility could return to normal operation rates in the
second half of October, while other sources have suggest
a restart could occur in 2-3 weeks. An August 11 fire at
the 2.86 billion lb/year South Carolina plant shut one of
PTA CFR China ($/mt)* 939.8-941.8
PTA CFR SE Asia ($/mt) 949.0-951.0
PTA CFR South Asia ($/mt) 959.0-961.0
EDC CFR FE Asia ($/mt) 429-431
EDC
EDC
CFR SE Asia ($/mt)
FOB NWE ($/mt)
429-431
370-380
EDC FOB USG ($/mt) 365-375
VCM CFR FE Asia ($/mt) 899-901
VCM CFR SE Asia ($/mt) 949-951
VCM FOB NWE ($/mt) 740-750
VCM FOB USG ($/mt) 730-740
Acrylonitrile CFR FE Asia ($/mt) 2034-2036**
Acrylonitrile CFR SE Asia ($/mt) 2029-2031**
Acrylonitrile CFR South Asia ($/mt) 2034-2036**
Acrylonitrile FOB USG ($/mt) 1970-1990**
Acrylonitrile CIF Mediterannean ($/mt) 1998-2002**
Monthly Contract Price
PTA FD NWE (Eur/mt) (Aug) NA-NA
PTA Delivered USG (¢/lb)(Aug) 59.15-59.15
VCM Delivered USG (¢/lb)(Sep) 54.00-54.50
US domestic prices reflect transaction pricing for medium-sized customers.
* Average prices for week ending previous Friday.
** ACN prices reflect assessments at close of Tuesday

its two lines, resulting in allocations for buyers.

Asia Platts Asian PTA versus Paraxylene ($/mt)

Asian purified terephthalic acid prices fell a sharp $32/
($/mt)
mt week on week to be assessed at $925/mt CFR China 1600
Friday amid continuing weakness in the downstream PTA CFR China
polyester sector. Market participants said there was PX CFR Taiwan
no sign of an end to the bearishness in the near 1400
term, with sluggish polyester demand seen likely to
continue through to year end. PTA prices fell steadily
1200
throughout the week. Deals were heard at $943/mt,
$940/mt, $935/mt and $923/mt for 1,000 mt Asian
origin cargoes with 90 days letter of credit for H2 1000
September and H1 October shipment. Chinese domestic
PTA prices also slipped throughout the week to be
800
assessed down Yuan 200/mt from last Friday at Yuan
25-Apr 23-May 20-Jun 18-Jul 15-Aug 12-Sep
6,730/mt, equating to $882/mt on an import parity
basis. Deals were reported at Yuan 6,730-6,740/mt.
Notes: All intermediates prices reflect assessments at close of Thursday,
September PTA futures on the Zhengzhou Commodity with the exception of PTA CFR China.
Exchange closed at Yuan 6,700/mt, down Yuan 200/
mt from the week before. PTA also fell $32/mt week
on week to be assessed at $950/mt CFR Southeast maintenance. Its 600,000 mt/year PTA plant in Ningbo
Asia and $960/mt CFR India Friday. In plant news, in eastern China has been shut since September 5 for
Mitsubishi Chemical will shut its 470,000 mt/year around 35 days’ planned maintenance. In contract
PTA plant at Haldia in West Bengal that is operated by news, China’s state-owned China Petroleum and
its MCC PTA India unit from end October for about Chemical Corp., or Sinopec has renominated its
a month of planned maintenance, a source close to September PTA Contract Price at Yuan 7,300/mt, down
the company said Friday. Its 320,000 mt/year No. from its previous nomination of Yuan 7,700/mt. The
2 PTA plant in Merak, Indonesia, will also be taken September CP nomination equates to around $957/mt
offline in November for almost a month of planned on an import parity basis.

Copyright © 2014, McGraw Hill Financial 24

 PLATTS POLYMERSCAN
Acrylonitrile
Europe
European acrylonitrile prices were assessed unchanged at
$2,000/mt CIF Med Tuesday, capping recent price falls as
market sources reported weak demand balanced by tight
supply in the midst of planned turnarounds. In addition,
sources reported composite feedstock costs having been
priced in to spot values this week. Ineos’ plant in Cologne,
Germany, was currently in turnaround with the unit
expected to restart in the second half of October. On the
other hand, Russia’s Lukoil has postponed its scheduled
maintenance shutdown at its 150,000 mt/year acrylonitrile
plant in Saratov, southern Russia, till October, a source
close to the company said Tuesday. Originally, the plant
was slated to commence its shutdown this week, lasting
until to November 3 but it was delayed to coincide with
the postponed shutdown at its Norsi facility in Nizhny
Novgorod. The source said that the ACN unit will start its
turnaround at “the beginning of October” and was expected
to restart at the beginning of November. The decision to
postpone the refinery maintenance was aimed at securing
sufficient gasoline supply on the domestic market, Lukoil’s
CEO Vagit Alekperov was quoted as saying by the country’s
Prime news agency last week. One European producer
argued that it has been able to achieve a margin expansion
in its contractual commitments for September. While
the producer calculated a Eur44/mt ACN production
cost reduction given the recent propylene contract price
decrease of Eur50/mt, it had achieved contract decreases of
no lower than Eur35/mt. “For September/October normally
there is an uptick in demand. Fiber guys have their high
time. Customers tend to come back with higher demand in
October-time...coming back from (derivative) shutdowns,” a
producer said. But trader sources countered that in addition
to still weak demand there was sufficient material available.
“Demand is steady and there is product availability.
Producers have material to sell,” an industry source said. In
Asia, prices were assessed at $2,035/mt, down $10/mt from
the previous week.
United States
The US acrylonitrile domestic assessment rose 1 cent on the
week to a seven-month high at 101 cents/lb delivered on
higher feedstock ammonia in September. The assessment
is at its highest since February 11 when it was at the same
level, according to Platts data. The domestic assessment is
a formula-based contract price using feedstock chemical-
grade propylene as well as ammonia, according to industry
sources. The September CGP contract price rolled over from
August at 71 cents/lb, and ammonia was heard at $570/
mt, sources said. In the spot market, the export assessment
was stable on the week at $1,980/mt FOB USG. No deals,
bids or offers were heard during the week, but after close
of assessment Tuesday, offers were heard as low as $1,930/
mt FOB USG. Supply in the market continued to be heard
tight, while demand was characterized as steady. Supply
Copyright © 2014, McGraw Hill Financial
september 17, 2014
was expected to remain snug through September as most
US producers were heard running at reduced rates because
of weak margins. Margins have been squeezed over the past
two months due to higher propylene in August and the
higher ammonia contract in September, with production
costs based on feedstocks, estimated as high as $2,000/mt,
according to Platts data.
Asia
Asian acrylonitrile prices slid across the region with
buying interest fading week on week. The CFR Far East
Asia marker was assessed at $2,035/mt, down $10/mt from
the previous week. There was a wide buy-sell gap for ACN
in the region. Offers for CFR FEA cargoes were between
$2,030/mt and $2,070/mt. There were also offers heard
hovering around the $2,000/mt CFR FEA mark, however,
this could not be confirmed immediately. Some buyers
said the cargo offered at the $2,000/mt level was a deep
sea parcel from the US. One end-user said: “I could not
conclude at that level as the cargoes could arrive only in
1-2 months time. But I am looking to buy 1,000-2,000
mt.” The same source added that the company is willing
to buy at $1,990-2,000/mt for Asian origin cargoes that
could be delivered earlier, within October. Buyers are
still waiting on the sidelines expecting prices to come
down further, according to market participants. Bids
were heard at $1,980-2,000/mt CFR FEA. “No buyer is
bidding above $2,000/mt at the moment,” a source said.
Feedstock propylene costs fell $5/mt week and week with
the markers assessed at $1,315/mt FOB Korea and $1,365/
mt CFR China Tuesday. Propylene prices in total have
shed $100/mt for the FOB Korea marker and $105/mt
for the CFR China marker since August 1, following an
underground pipeline explosion in Taiwan. Meanwhile,
ACN cargoes for the CFR South Asia marker was assessed
$20/mt lower week on week to $2,035/mt. Offers were
heard between $2,030/mt and $2,100/mt. Buyers’ ideas
were heard at $1,980-2,000/mt, similar to China. Some
sources, however, expect CFR South Asia’s price to be
lower than other parts of the region, moving forward.
“Because India buys mostly on a spot basis, when the
market is going down the Indian market [price] is the
lowest. But when the market is rising, India is the
highest,” one market participant said.
Ethylene Dichloride / Vinyl Chloride Monomer
Europe
EDC: The northwest European ethylene dichloride spot
price was assessed down $10/mt FOB NWE Thursday,
tracking the low demand and further price fall seen in
downstream polyvinyl chloride this week. European PVC
contract prices were assessed at Eur825/mt, down Eur5/
mt week on week, Wednesday. Producers conceded the
full drop in ethylene this week, due to a bearish outlook
on the remainder of the third quarter, sources said.
25
 PLATTS POLYMERSCAN
Demand in downstream PVC is reportedly weak: “Demand
in September has not been fantastic despite converters
rebuilding stock [following few purchases in August],
customers do not want to risk buying too much,” a PVC
producer said. Customers have been buying no more than
necessary this month on the expectation ethylene is going
to drop further, sources said. With EDC primarily used
for the production of vinyl chloride monomer, VCM then
being used almost entirely for the production of PVC,
prices between these products are seen heavily correlated,
sources say. The most recent offer of EDC came from a
producer at Eur300/mt FOB Rotterdam, two trade sources
said. VCM: NWE VCM spot prices fell $11/mt this week,
coinciding with falls in up- and downstream EDC and
PVC. Although material is sparse year round in this captive
market, one trader said, two major producers should have
small quantities available after reporting weaker than
expected PVC sales through August.
United States
EDC: Export prices held steady week on week, assessed
Thursday at $365-375/mt FOB USG, as notional trading
levels were heard at $365-375/mt. No bids, offers or trades
were heard for the week. Asia saw thin trading, and market
sources have said producers have no motivation to lower
prices to meet buying interest in Asia. In EDC exports, July
totals rose to 276 million lbs after exports of 267 million
lbs, according to data released by the American Fuel and
Petrochemicals Manufacturers on Tuesday. EDC exports rose
from 188 million lbs to 276 million lbs in July on a year-on-
year basis. In feedstocks, ethylene rose one cent on Thursday
to reach a 29-month high, assessed at 71-71.5 cents/lb FD
USG for September delivery following talks of tight supply.
The assessment is at its highest level since the April 9, 2012,
assessment of 74.125-74.625 cents/lb FD USG, Platts data
showed. October deliveries spiked 2 cents/lb to be assessed at
69.75-70.25 cents/lb FD USG. One market source attributed
the tight supply on strong demand from downstream markets
and low producer inventories. September was last heard
traded on Wednesday morning at 71 cents/lb MtB Wms. The
ethylene assessment gained 2.75 cents/lb for the week. VCM:
Spot prices slipped $5/mt on the week, assessed Thursday
at $730-740/mt FOB USG in a market heard to have limited
activity. No bids, offers or deals were heard for the week,
and market sources pegged notional trading levels at $730-
740/mt FOB USG on declining PVC prices. Downstream,
US export polyvinyl chloride prices fell $5/mt on the week,
assessed Wednesday at $930-940/mt FAS Houston. Producer-
to-trader offers for PVC were heard around $950/mt FAS
Houston with offers heard at $890-900/mt for trades for the
second half of September. Traders have been heard rejecting
offers in the mid-900s with trading sources heard liquidating
August material at reduced prices. In production, August
PVC production dropped to 1.328 billion lb (602,561 mt),
down 13.2 million lb from 1.341 billion lb in July, according
preliminary data released by the American Chemistry
Council on Thursday. Year-to-date PVC production stands at
Copyright © 2014, McGraw Hill Financial
september 17, 2014
9.98 billion lb. In VCM exports, July totals declined to 221
million lbs in July from 236 million lbs in June, according
to data released by the American Fuel and Petrochemicals
Manufacturers on Tuesday. Exports fell from 234 million lbs to
221 million lbs in July on a year-on-year basis.
Asia
EDC: Asian ethylene dichloride was assessed flat week
on week at $430/mt CFR Far East Asia and $430/mt
CFR Southeast Asia Thursday in thin trade. A European-
origin cargo for October arrival to South Korea was heard
concluded at $430/mt but further details could not be
confirmed. Deepsea cargoes were heard offered to buyers
in Far East Asia below $450/mt CFR this week, against
buying ideas at $410/mt CFR and below. No Asian-origin
cargoes were heard offered amid the weak prevailing prices.
With the volume of deepsea cargoes seen offered into Asia
increasing and inventory levels in China high, one market
participant said it was possible prices would drop below
the $400/mt floor if weak demand were to persist. Asian
producers were seen to be extremely reluctant to release
cargoes below $450/mt due to high feedstock costs and
were mulling cutting run rates rather than selling at a loss.
In Southeast Asia, little activity were seen this week, and
no trades. VCM: Asian vinyl chloride monomer prices were
assessed flat week on week at $900/mt CFR Far East Asia
and up $5/mt at $950/mt CFR Southeast Asia Thursday.
September-loading cargoes were heard concluded in the
range of $900-910/mt CFR China, but details could not
be confirmed. Selling indications were heard at $910/mt
CFR Far East Asia and $910/mt FOB against buying ideas
at $870/mt CFR Far East Asia. Buyers were on the sidelines
this week anticipating October PVC prices would fall
further, with current VCM prices already causing losses
for standalone PVC plants. A seller said downstream users
were purchasing smaller VCM parcels to cover a minimum
level of production until signs of improvement emerged
in the PVC market. In Southeast Asia, a 3,000 mt October-
loading cargo was heard traded at $950-960/mt from Far
East Asia, but details could not be confirmed. One source
said traded prices were inching closer to offer levels amid
limited supply, but were unlikely to reach parity due to the
weak PVC demand. Integrated PVC producers were mulling
cutting run rates and releasing their VCM supplies into the
spot market instead, a Far East Asian seller said.
News
LyondellBasell maintains
PP force majeure on Plock, Carrington
London — LyondellBasell maintained force majeure
on polypropylene from Carrington, England, and Plock,
Poland, despite resuming “regular” supply from both
the plants, sources said Wednesday. LyondellBasell was
not immediately available to confirm. LyondellBasell
26
 PLATTS POLYMERSCAN september 17, 2014

had declared force majeure on some PP grades at its
400,000 mt/year unit in Plock, Poland, at the end of
June. In Carrington, a force majeure was issued July 7
after an outage. The plant restarted at the end of July,
despite remaining in force majeure. Sources, however,
reported tight supplies of high density polyethylene from
Plock’s plant. It was not clear whether the plant was in
maintenance. Previously, sources reported a four week
turnaround for the HDPE Plock plant. PP homo injection
and HDPE film prices were both down week on week by
Eur10/mt ($12.60/mt) to Eur1,250/mt FD NWE.
EU July styrene imports down 16%
month on month to to 53,628 mt
London — EU styrene imports in July fell 16%
month on month to 53,628 mt, Eurostat data showed,
reflecting reduced demand amid a seasonal slowdown in
construction-driven EPS consumption. The US remained the
main exporter, supplying 41,850 mt. The fall in imports,
the bulk of which went into the ARA region, came despite
an ongoing maintenance shutdown of the 550,000 mt/
year Ellba styrene plant in the Netherlands. “Downstream
demand is very bad, worse than expected,” a source said.
Total imports continued to outpace the EU’s styrene
exports, cementing the region’s s position as a net importer.
Year-on-year figures showed imports rose 77%, with net
imports up 66%. On July 1, the styrene/benzene spread in
Europe was $165/mt, down from $444/mt on the same day
in 2013. Styrene producers typically require a premium of
$250-300/mt over benzene to make production economic.
The Eurostat data showed that in the first seven months of
the year, import volumes rose 7.7% to 350,864 mt, mostly
from the US, with 40,000 mt/month continuing to reach
Europe despite a shuttered arbitrage and representing a
continuation of contractual obligations. Exports in July
jumped 36% month on month to 20,125 mt, while the
January-July cumulative total was little changed at 120,915
mt. The main export destinations were Egypt (9,997 mt)
Subscriber notes (continued...)
in Texas, with standard cargo size of 5-10 million lb and
minimum purity of 99.9%. Platts has also amended the
description for its current ethylene FD USG assessment to
reflect the assessment of FD USG ethylene in Month 1. The
assessment codes will change as follows: AAOSR00 will
change its description from LB Ethylene FD USG cts/lb to LB
Ethylene FD USG Mo01 AAOSR03 will change its description
from LB Ethylene FD USG cts/lb MAvg to LB Ethylene FD
USG Mo01 MAvg AAOSR05 will change its description
from LB Ethylene FD USG cts/lb WAvg to LB Ethylene FD
USG Mo01 WAvg Platts will further add new assessments
to reflect assessments for delivery in Month 2 as follows:
AAOSS00 LB Ethylene FD USG Mo02 AAOSS03 LB Ethylene
FD USG Mo02 MAvg (monthly average) AAOSS05 LB Ethylene
FD USG Mo02 WAvg (weekly average) The daily assessment
will appear on PCA 870 and weekly average will appear
on PCA 301. Please direct any questions or comments to
petchems@platts.com with a copy to pricegroup@platts.
com. Please provide a clear indication if comments are
intended for publication by Platts for public viewing. Platts
will consider all comments received and will make these
comments available on request.
and Turkey (4,599 mt). Exports to Egypt were supported by
increased feedstock styrene demand from E.Styrenics, an
Egyptian polystyrene producer.
Russian polypropylene maker Poliom
at full capacity after turnaround
London — Russian polypropylene maker Poliom has
reached full capacity at its plant in Omsk, Western Siberia,
after a two-week turnaround, the company’s spokeswoman
confirmed Wednesday. The turnaround started in mid-
August and lasted until August 29. The plant ramped up its
production capacity to 210,000 mt/year in April. Poliom is
part of Titan Group, a major Russian player in a number of
chemical and agricultural markets. The plant’s production

Global Production Update

Company Location Capacity* Timing Status
kt/yr
DAK Americas Wilmington, NC 450 PET September Plant closure
Indorama Rotterdam 400 PET Oct TA
Equipolymers Schkopau 350 PET Oct 13 TA 5 weeks, 1 line
Neogroup Klaipeda 160 PET H2 Sept TA 6 wks
Indorama Rotterdam 418 PET 14-Jul Technical issues
JBF Geleen 475 PET 14-Jun SU
TK Chemical Gumi 800 bottle Aug OR 70%
FENC Shanghai 600 bottle Aug OR 85%
FENC Taiwan 600 bottle Aug OR 80%
Lotte Ulsan 440 bottle April OR 100%
Lotte Yeosu 70 bottle H2 April TA
Sanfangxiang Jiangsu 1,500 bottle H2 April OR 100%
FENC Shanghai 1,116 bottle April OR 100%
CFR Changzhou 1,300 bottle April OR 80%
TA = scheduled turnaround; SD! = unplanned shutdown; SU = startup; DB = debottlenecking; OR = operating rate

Copyright © 2014, McGraw Hill Financial 27

 PLATTS POLYMERSCAN september 17, 2014

is supplied both within Russia and for export to country’s
such as Ukraine, Uzbekistan, Kazakhstan, Lithuania,
Finland, Serbia, Bulgaria, Turkey, China and Vietnam.
US propane, propylene stocks
reach historic 77.44 million barrels: EIA
Houston — US propane and propylene stocks reached
77.44 million barrels for the reporting week ending
September 12, Energy Information Administration data
showed Wednesday. The stocks are now at its highest
since May 5, 1993 when EIA started reporting US stocks
for propane and propylene. The US inventory rose 1.4
million barrels for the current reporting week whereas in
the previous year the inventory dropped 59,000 barrels in
the comparable week. Midwest saw the highest regional lift
of 1.12 million barrels to an ending stocks of 27.35 million
barrels. Stocks in that region now stand 4.6 million barrels
higher than in the year-ago week. Gulf Coast stocks rose
325,000 barrels to 41.28 million barrels. In the previous
week, the Gulf Coast saw the largest regional decrease in
inventories, with a 601,000-barrel drop. Atlantic Coast
stocks dropped 119,000 barrels to 5.61 million barrels,
according to the EIA data. US stocks of propylene for
nonfuel use decreased 252,000 barrels week on week to
3.3 million barrels. Imports in the reporting week declined
56,000 b/d to 58,000 b/d. Implied demand declined 18.22%
week-on-week to 1.1 million b/d Gulf Coast propane at
the Enterprise terminal in the Mont Belvieu, Texas, hub
was trading at $1.10/gal on IntercontinentalExchange
Wednesday morning, some 75 points lower than at 3:15 pm
EDT (1915 GMT) Tuesday. Conway propane was trading at
$1.08/gal on IntercontinentalExchange, which was 2 cents
lower than at 3:15 pm EDT Tuesday.

POLYMERSCAN Volume 37 / Issue 37 / September 17, 2014

Editorial: Sydney +61-2-9255-9842. Singapore +65-6530-6584. Tokyo +81-3-4550-8837. London +44-20-7176-6264. New York +1-212-904-3070. Houston +1-713-658-3206.
Client services information: North America: 800-PLATTS8 (800-752-8878); direct: +1-212-904-3070 Europe & Middle East: +44-20-7176-6111 Asian Pacific: +65-6530-6430
Latin America: +54-11-4121-4810, E-mail: support@platts.com
Copyright © 2014 McGraw Hill Financial. All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise
redistributed without prior written authorization from Platts. Platts is a trademark of McGraw Hill Financial. Information has been obtained from sources believed reliable. However, because
of the possibility of human or mechanical error by sources, McGraw Hill Financial or others, McGraw Hill Financial does not guarantee the accuracy, adequacy or completeness of any such
information and is not responsible for any errors or omissions or for results obtained from use of such information. See back of publication invoice for complete terms and conditions.

Copyright © 2014, McGraw Hill Financial 28

 Advertisement

Join an ElitE SponSorShip program

Each year, hundreds of global energy leaders gather to honor those companies and
executives who truly stand out as shining stars of the industry. The awards provide
an excellent communications opportunity for companies wishing to reach top
executives in the energy industry’s most progressive businesses. To learn more, visit
www.GlobalEnergyAwards.com
Contact us at +1 720-264-6840 or GlobalEnergyAwards@platts.com