[PETROCHEMICALS ]

www.platts.com
POLYMERSCAN
Now online at pmc.platts.com Volume 37 / Issue 39 / October 1, 2014

Americas Polymer Spot Price Assessments

FAS Houston US Contract US Domestic FOT Brazil* CFR Brazil CFR PERU
($/mt) dlvd railcar ($/mt) ($/mt) ($/mt) ($/mt)
(cts/lb)
PVC SUSP 900-910 62.00-64.00 1366.48 -1410.56 —- 1060-1070 1015-1025


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

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

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

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

PET bottle grade 1554-1576# 1687-1709##
Notes: All price assessments reflect spot trades with the exception of US Contract Delivered railcar. * FOT Brazil assessments are for export material via truck to MERCOSUR markets. # US PET bottle
grade refers to DDP US West Coast. ## US PET contract price is in $/mt.

Asian Polymer Spot Price Assessments Contents

CFR FE Asia CFR SE Asia CFR China Polymers
($/mt) ($/mt) South Asia Domestic
($/mt) (Yuan/mt) Polyvinyl Chloride 4
PVC SUSP 1004-1006 1004-1006 1034-1036 ^6930-6950 Low Density Polyethylene 5
^^5920-5940 Linear Low Density Polyethylene 6
High-Density Polyethylene 7
LDPE G-P 1529-1531 1554-1556 —- 12080-12120 Polypropylene 9
LLDPE (Butene) 1489-1491 1549-1551 1609-1611 10980-11020 Polystyrene 10
Acrylonitrile Butadiene Styrene 12
HDPE Inj 1519-1521 1559-1561 1624-1626 —-
Polyethylene Terephthalate 13
Bmldg 1539-1541 1559-1561 1609-1611 —-
Film 1539-1541 1559-1561 1609-1611 11980-12020 Polymer Feedstocks: Olefins
Yarn 1559-1561 1589-1591 —- —-

Ethylene 16
PP Raffia 1479-1481 1509-1511 1534-1536 10930-10970 Ethylene Glycol 17
PP Injection 1469-1471 1504-1506 1534-1536 —- Propylene 18
Fiber —- —- Butadiene 19
Copol 1599-1601 1594-1596 1584-1586 —-
IPP Film 1509-1511 1534-1536 1569-1571 —- Polymer Feedstocks: Aromatics
BOPP 1504-1506 1534-1536 1569-1571 —- Paraxylene 21
Styrene 22
PS G-P 1604-1606 1644-1646 —- —-
HIPS 1704-1706 1719-1721 —- —- Polymer Feedstocks: Intermediates
EPS G-P 1689-1691* Purified Terephthalic Acid 24
EPS F-R 1729-1731* Acrylonitrile 25
ABS Inj 1914-1916 1909-1911 —- —-
Ethylene Dichloride /
Vinyl Chloride Monomer 25
PET bottle grade 1207-1209 * 1247-1249 ** —- —-
Notes: Asian PVC, PS, and ABS, FE Asia refers to China. All Asian polymer assessments are basis L/C 0-30 days Credit differentials News
27
calculated using 1 month LIBOR +1.5%. ^Denotes ethylene-based production ^^Denotes carbide-based production. EPS F-R refers
to fire retardant grade. *Denotes FOB North East Asia (South Korea, China, Japan) **Denotes FOB Southeast Asia (Thailand,
Indonesia , Vietnam, Malaysia).
 PLATTS POLYMERSCAN october 1, 2014

Daily Polymer Spot Price Assessments

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

Polymer Spot Freight Rates ex-Middle East ($/mt) Subscriber Notes:

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

900 Symbol Description

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

Copyright © 2014, McGraw Hill Financial 2

 PLATTS POLYMERSCAN october 1, 2014

Euro Contract Assessments (Euro/mt)

Germany Holland Italy France Spain Britain* FD NWE CP**
($/mt)
PVC susp Gross 843-847 843-847 843-847 843-847 843-847 695-699 1063-1067
PVC susp Net 818-822 818-822 818-822 818-822 818-822 675-679

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

LLDPE C4 (Blown film) 1400-1405 1400-1405 1400-1405 1400-1405 1400-1405 1089-1093 1765-1771
LLDPE C4 (Cast stretch film) 1400-1405 1400-1405 1400-1405 1400-1405 1400-1405 1089-1093 1765-1771
LLDPE C6 (Blown film) 1440-1445 — — — — — 1815-1821
LLDPE C6 (Cast stretch .film) 1440-1445 — — — — — 1815-1821

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

HDPE Bmldg 1330-1335 1330-1335 1330-1335 1330-1335 1330-1335 1034-1038 1676-1683
HDPE Film 1290-1295 1290-1295 1290-1295 1290-1295 1290-1295 1003-1007 1626-1632
HDPE HMW 2-5 1350-1355 1350-1355 1350-1355 1350-1355 1350-1355 1050-1054 1702-1708
HDPE HMW 5-10 1345-1350 1345-1350 1345-1350 1345-1350 1345-1350 1046-1050 1695-1702

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

PP Copol 1470-1475 1470-1475 1460-1465 1470-1475 1460-1465 1143-1147 1853-1859

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

HIPS Net 1580-1590 1580-1590 1580-1590 1580-1590 1580-1590 1229-1237 1991-2004
EPS 1535-1545 1535-1545 1535-1545 1535-1545 1535-1545 1194-1202 1935-1947

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

ABS Ave color 1940-1950 — 1940-1950 1940-1950 1940-1950 1509-1517 2445-2458
ABS Auto black 2090-2100 — 2090-2100 2090-2100 2090-2100 1626-1633 —-

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

PET bottle grade — — — — — 1156-1161##
PET bottle grade Net 1073-1077 — — — — 873-877 1352-1357
PET bottle grade Net — — — — — 1122-1128##
APET film grade 1148-1152
APET film grade Net 1063-1067
Notes: *FD Britain = FD UK, with assessments in British Pounds per metric ton. **FD NWE CONTRACT PRICE denotes FD Germany converted into US dollars. ## PET bottle grade assessments basis
FD UK are in Euro/mt. PET assessments refer to regular business at prices negotiated between buyers and sellers on a monthly basis. LLDPE C6 denotes products from Ziegler-Natta catalyst.

Platts European and African Polymer Spot Price Assessments

FOB NWE FD NWE FCA Antwerp CFR Russia* CFR Turkey** CFR North Africa FD UK
($/mt) (Eur/mt) (Eur/mt) (Eur/mt) ($/mt) ($/mt) (GBP/mt)
PVC SUSP 956-960 818-822 — 807-811 1033-1037 — —
($/mt) 1018-1022

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

LLDPE (Butene) —- 1258-1262 1238-1242 1208-1212 1636-1640 1558-1562 —

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

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

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

PP Raffia — — — — 1583-1587 1568-1572 —
PP Copol 1573-1578 1308-1312 1288-1292 1268-1272 1643-1647 1618-1622 —

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

HIPS 1783-1796 1475-1485 — — 1845-1855 1820-1830 —
EPS 1777-1790 1470-1480 — — 1850-1860 — —
ABS GP/Nat 2000-2010***
1680-1690 — — — —

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

PET bottle grade — — — — — — 1110-1115#
Recycled PET — 878-882 — — — — 733-737
Recycled PET — — — — — — 942-948#
Notes: FOB NWE prices are based on exports of 300mt or more. *CFR Russia denotes CFR St Petersburg; ** CFR Turkey denotes CFR Istanbul; *** ABS GP/Nat denotes CFR NWE in $/mt. # PET
bottle grade and Recycled PET assessments for FD UK are in Euro/mt. Recycled PET assessments are for a hot wash flake without food approval.

Copyright © 2014, McGraw Hill Financial 3

 PLATTS POLYMERSCAN
Polymers
Polyvinyl Chloride
Europe
Platts assessed European freely delivered polyvinyl chloride
spot and contract prices at Eur820/mt Wednesday, flat
week on week. No change in the cost of feedstock ethylene
was seen for October contracts and while poor demand
was seen bringing prices down last week they held up
this week on firming market sentiment, sources said. The
Northwest European October CP for ethylene fully settled at
Eur1,150/mt FD NWE Thursday, a rollover from September,
sources said. Following the ethylene settlement, demand
was seen up, as consumers eyed purchases postponed in
expectation of a drop in the October ethylene contract.
“Buyers’ stock levels couldn’t be that high after waiting a
month for a drop in ethylene — sooner or later they had
to buy,” a trader source said. Although producers have
been heard considering not lowering PVC CPs this month
some converters suggested this may change in coming
weeks. “Demand from our [construction] industry is low
and slowing. Producers will eventually have to concede
[on prices] if they want to shift product when we can
do without,” a pipe converter source said. The European
construction sector consumes 60% of total domestic PVC
demand. In Turkey, meanwhile, the spot price was assessed
at $1,035/mt CFR. No change had been heard in European
offers to the country this week, after a reduction last week
had been seen bringing the CFR price down. The lowest
EU spot offer to Turkey currently heard was at $1,040/mt
CFR. Demand in the region had been heard improved this
week as consumers expected no further decreases in EU
offers going further into the month, a trade source said,
adding demand in Turkey had picked up with converters
learning to diversify away from export markets that are
currently in a state of political volatility. Meanwhile Polish
petrochemical producer Anwil has restarted production
at its PVC unit in Wloclawek, Poland, Tuesday after three
weeks of planned maintenance, a company spokesman said
Tuesday. The company shut down the 340,000 mt/year PVC
plant on September 8.
United States
US export PVC prices held steady week on week, assessed
Wednesday at $900-910/mt FAS Houston, in a market that
several sources said was quiet. No trades, bids or offers were
heard for the week, with a trading source saying the gap
between buying ideas and offers has remained too wide
for trades to occur. Buying ideas were heard at sub-$900/
mt levels. Feedstock ethylene pricing has posed an issue for
domestic producers as US spot ethylene in mid-September
reached its high level since Platts began assessing it on July
26, 2004. US spot ethylene has come down to a Wednesday
assessment of 66-66.5 cents/lb FD USG for October and
63.75-64.25 cents/lb FD USG for November. A trading
Copyright © 2014, McGraw Hill Financial
october 1, 2014
source said drops in ethylene prices and returns of downed
steam crackers may lead to an increase in market activity
and allow producers to lower prices. At current feedstock
prices, producers will have a difficult time covering their
costs, another trading source said. While producers have
been seen unwilling to reduce prices due to feedstock costs,
traders have experienced difficulty in executing deals with
PVC end-users, a market participant said. Overseas demand
has been called quiet by market participants. In markets,
CFR offers to Egypt were heard to have reached $1,000/
mt on improved demand, but demand in Asia has been
described as weak due to upcoming holidays and ample
inventories, market sources said.
Asia
Asian polyvinyl chloride prices fell $5/mt this week as
buying interest faded due to poor India demand and China’s
Golden Week holiday. The CFR India market fell $5/mt
week on week to $1,035 /mt Wednesday. Following a fall
in domestic PVC prices, buying sentiment had picked up
slightly this week, with Northeast Asia cargoes heard traded
between $1,030-1,040/mt for 90-day credit terms. While
buying ideas were heard between $960-1,000/mt, offers were
maintained at $1,050/mt. A Northeast Asia producer said
the current offers were sufficient to block Chinese carbide-
based PVC from flooding into India, and saw no reason to
lower their selling ideas. Moreover, as feedstock ethylene
prices remained persistently high, further cuts would only
induce more losses for ethylene-based PVC makers, added an
Indian source. However, the large import volumes over the
last three months during the monsoon season were expected
to keep end-users satiated till the end of this year, and could
possibly delay market demand from returning, noted market
participants. The CFR China marker fell $5/mt from last
Wednesday to $1,005/mt. October imports from Asia were
heard concluded between $1,000- 1,010/mt and at $980-990/
mt for deep-sea cargoes. Market activity was thin this week
with China’s Golden Week holiday starting Wednesday.
Asian producers were unwilling to lower prices despite
weak buying sentiment to maintain a price gap with deep-
sea origin cargoes. Operating downstream makers mostly
preferred cheap cargoes due to poor re-export demand
from the West, thus pushing import prices down, noted a
trader. In the Chinese domestic market, ethylene-based PVC
remained unchanged from last Wednesday at Yuan 6,940/
mt. Chinese carbide-based PVC fell Yuan 10/mt from the
week before to Yuan 5,930/mt Wednesday. Prices for carbide-
based PVC were heard to be on a slight downtrend since late
last week, as sellers wanted to reduce inventory levels before
the holiday. Discussions were generally muted since buyers
were on the sidelines in preparation for the break. A Chinese
source said he expected lower prices after the holiday as
downstream demand for pipes are generally weaker as winter
approaches. The CFR Southeast Asia PVC marker dropped
4
 PLATTS POLYMERSCAN
$5/mt to $1,005/mt Wednesday. October-loading cargoes
were heard at $1,000-1,010/mt this week. Trades for Chinese
carbide-based PVC was heard at $930-940/mt, while Chinese
ethylene-based PVC was heard at $960/mt, both keeping
a spread with mainstream PVC prices. Selling indications
were heard at $1,020/mt, against buying indications at
$1,000/mt and below. Growing imports of Chinese PVC
were expected to weaken the Southeast Asia market further,
thus suppressing buying demand in anticipation of cheaper
November offers this month.
Latin America
Latin American import assessments remained stable on
the week, with the region experiencing with limited
demand that has been seen in global markets. The CFR
Brazil assessment Wednesday was at $1,060-1,070/mt
with no trades, bids or offers heard. Colombian-origin
PVC into Brazil was heard at $1,000/mt as devaluation
of the Brazilian Real has made imports from outside
South America difficult to execute. Offers for Asia-origin
product were last heard at $1,080/mt CFR Brazil. The Peru
assessment held steady at $1,015-1,025/mt on a CFR basis
in a quiet market. Strong feedstock prices mean exports
would be difficult for US producers, a trading source said,
adding that overseas markets have been dull lately.
Low Density Polyethylene
Europe
European low density polyethylene spot prices rose this
week, for the first time since September 9, closing at
Eur1,260/mt FD NWE, as demand improved due to a
need for customers to buy following the destocking seen
in September, according to one trader. The Northwest
European October contract price for ethylene was
fully settled at Eur1,150/mt FD NWE, a rollover from
the September CP, sources said. The initial settlement
was between Clariant as a buyer with LyondellBasell,
BP Refining and Petrochemicals and BASF as sellers,
a source from the buyer said. This was followed by
BPRP as a seller with buyer Vinnolit. LyondellBasell
and BASF confirmed. BPRP did not confirm. Vinnolit
was not immediately available to confirm. More spot
material was heard offered in South America this week,
with offers heard at $1,805/mt CFR Peru, and $1,765/
mt CFR Peru, shipping the second half of October. In
the contract market, prices were assessed unchanged
this week, at Eur1,450-1,455/mt. One producer said that
they were extremely short in LD and that particular
pressure was felt on 0.3 MFI grade, with supply reduced
by a lack of imports. One converter said that market
fundamentals had not changed week-on-week, and
the price expectation was for a rollover. Meanwhile
in Turkey, sentiment was weaker and buying activity
reduced as the market expected Petkim to start
production at the end of the week, one source said.
Copyright © 2014, McGraw Hill Financial
october 1, 2014
United States
US low-density polyethylene prices were assessed
Wednesday at $1,753-$1,775/mt FAS Houston, up $11/mt
week on week, as sources said tighter availability continued
to put pressure on a mostly non-existent US export market.
Multiple sources said they were still waiting on fresh
October pricing from producers, with expectations that
offer levels would remain around those seen in September.
Sources said a limited amount of bagged LDPE had been
offered at 79 cents/lb ($1,742/mt), but most resin was
notionally talked above that level. A producer source pegged
prices closer to $1,800/mt FAS Houston. No confirmed deals
were heard Wednesday. A strong US dollar and declining
prices in other regions were making exports increasingly
difficult, sources said, leading many traders to look to Asia,
the Middle East and even Europe to supply customers in
Latin America. Sources said it would likely be November at
the earliest before the US would be a significant player in
the export market, though that was not a given. Sources
were hopeful that declining spot ethylene prices could
mean additional resin would become available as producers
would have more incentive to make polyethylene and sell it
at the prices necessary to export. October US spot ethylene
was assessed Wednesday at 66-66.50 cents/lb FD USG, down
5.75 cents/lb week on week as the market reacted positively
to anticipated start ups and capacity expansions. There were
expectations that October contracts would roll over after
producers successfully implemented a 3 cents/lb increase
in September. September LDPE contracts were assessed at
95-96 cents/lb ($2,094-2,116/mt) delivered-railcar basis,
matching a record-high set in the second quarter of 2011,
Platts data show. Equistar Chemicals previously announced
a 3 cents/lb increase for all grades of North American PE
effective October 15, but no other producers were heard
matching the increase, which will make implementing
it difficult, sources said. Dow Chemical sent a letter to
customers this week saying it will raise its US polyethylene
prices by 3 cents/lb ($66/mt) effective November 1.
Multiple sources said a November increase would also be
tough to implement as there were indications not all major
producers planned to push for another increase.
Asia
Asian low density polyethylene prices fell this week, as the
buy side offered no support with China closed for the Golden
Week holiday starting Wednesday. The CFR Far East Asia
marker was assessed $20/mt lower week on week at $1,530/mt
Wednesday, while the CFR Southeast Asia marker also fell $20/
mt to $1,555/mt. The market was largely quiet this week as
buyers in China had finished procuring cargoes in preparation
of the Golden Week holiday. No trades were heard at the start
of the week, as offers from sellers were met with little or no
interest. However, several traders said market participants were
not adopting a wait-and-see approach but rather locked in a
stalemate. “Buyers have no intentions on increasing their bids,
while sellers are reluctant to reduce their offers any further as
margins are very poor,” said a China-based trader. Another
5
 PLATTS POLYMERSCAN
market source saw the tradable market value at around
$1,550/mt CFR China at the start of the week, with buying
ideas heard at around $1,530/mt and offers heard at $1,580/
mt. In other news, the ongoing protests in Hong Kong has
had a negative impact on market sentiment as buyers were
worried about whether the situation would impact business. A
trader said that buyers were reluctant to conclude deals until
market confidence returns. “Many traders were expecting
some deals to be concluded this week before the Golden Week
holiday in China starts,” said the same trader. “The Hong
Kong protests dashed those expectations, with traders putting
their deals on hold.”
Latin America
Import assessments for low-density polyethylene to Peru
remained flat week on week, assessed Wednesday at
$1,790-$1,800/mt on a CFR basis as buying talk was heard
diminished. Market sources said cheaper European-origin
product was being offered into Peru, however these offers
were not taken into consideration because delivery dates fell
outside the 20-40 days forward delivery period. European
LDPE offers were heard in the $1,765-1,805/mt range while
Asian offers were heard at $1,800-1,830/mt CFR Peru for
second half October shipments, however those were not
considered because they fell outside the delivery period.
Asian-origin material was heard offered at $1,780/mt CFR
Peru, but was below 100mt minimum size dictated by Platts
methodology. US-origin material was not heard offered
into the region but previously was heard higher at $1,835-
$1,854/mt CFR basis. In Brazil, CFR assessments remained
flat week on week, assessed at $1,770-1,780/mt amid slow
trading, sources said. One Brazilian trader said product from
the Middle East could be offered at $1,760/mt on a CFR
basis, however neither the volume nor delivery period were
specified. A Brazilian-based buyer said product from Israel
was offered $1,735/mt CFR and noted that a trade agreement
between the the country and the Mercosur would expire at
the end of the year. No other market sources heard pricing
at a similar level. No deals or bids were heard by close
of assessment. In export pricing, FOT Brazil assessments
remained flat, assessed Wednesday at $1,840-$1,850/mt on
stable pricing into the region. No trades, bids or offers were
heard by close of assessment. One Paraguayan seller pegged
their LDPE pricing at $1,820 for Mercosur participants.
Sources said Braskem pricing remains high due to limited
spot availability as the company undergoes a major
turnaround at its Sao Paulo olefins and polymers complex.
Local producers were heard increasing October pricing by
Reals$300 ($121/mt) according to company sources.
Linear Low Density Polyethylene
Europe
European linear low density polyethylene spot prices rose
this week to Eur1,260/mt FD NWE as low stock levels
compelled buyers to return to the market. Availability
Copyright © 2014, McGraw Hill Financial
october 1, 2014
was also hampered by the reduced imports seen in
recent weeks following the fall in the euro against the
dollar. The price rise occurred following the ethylene
contract price settling for October: it was fully settled
at Eur1,150/mt FD NWE, a rollover from September,
sources said Thursday. The initial settlement was between
Clariant as a buyer with LyondellBasell, BP Refining and
Petrochemicals and BASF as sellers, a source from the
buyer said. This was followed by BPRP as a seller with
buyer Vinnolit. LyondellBasell and BASF confirmed.
BPRP did not confirm. Vinnolit was not immediately
available to confirm. In the contract market, prices
were unchanged this week, closing at Eur1,402.50/mt.
One converter said they could not see prices rising as
order intake was very weak with customers holding off
purchasing as they awaited further price developments.
One producer said that LLDPE c4 was very short due to a
scarcity of imports. Meanwhile in Turkey, one source said
that the market sentiment was very weak in line with
recent price drops in China.
United States
The US linear low-density polyethylene export market
remained quiet this week as multiple sources said they
were awaiting word from producers on pricing and
availability for October product. LLDPE prices were
assessed Wednesday at $1,687-1,709/mt FAS Houston,
unchanged week on week. Sources talked bulk railcar
prices notionally in the 75-76.5 cents/lb range, with some
bagged LLDPE heard available at 76 cents/lb ($1,675/mt)
before being shipped to the port. Multiple US-based traders
said they continued to look to other regions for resin as
US prices were mostly uncompetitive into export markets
in South America. Sources were keeping a close eye on
spot ethylene prices, with some hope that further declines
could give US producers incentive to make additional
resin for export. October US spot ethylene was assessed
Wednesday at 66-66.50 cents/lb FD USG, down 5.75
cents/lb week on week as the market reacted positively
to anticipated startups and capacity expansions. There
were expectations that October PE contracts would roll
over after producers successfully implemented a 3 cents/
lb increase in September. October contracts had not been
settled by time of publication, but were last assessed at
82-83 cents/lb ($1,808-1,830/mt) for delivered railcars
for September, the highest level since August 2008 when
contracts was assessed at 86.50 cents/lb delivered railcar.
Equistar Chemicals previously announced a 3 cents/
lb increase for all grades of North American PE effective
October 15, but no other producers were heard matching
the increase, making it unlikely the higher price would
be realized, sources said. Dow Chemical sent a letter to
customers this week saying it will raise its US polyethylene
prices by 3 cents/lb ($66/mt) effective November 1.
Multiple sources said a November increase also appeared
unlikely at this point as not all major producers were
likely to join in, making it tough to implement.
6
 PLATTS POLYMERSCAN
Asia
The linear low-density polyethylene market was mixed this
week, with the CFR Far East Asia marker unchanged week
on week at $1,490/mt Wednesday, while the CFR Southeast
Asia marker fell $10/mt to $1,550/mt and South Asia fell
$30/mt to $1,610/mt. On Monday, a trade was heard
concluded at $1,500/mt on a CFR China basis with a 90-day
letter of credit. A trader said market levels were around
$1,500/mt and offers at $1,520/mt. The deal injected some
confidence to the market, which has been largely quiet
since the previous week with participants unable to come
in agreement to finalize deals. Several market participants
agreed that $1,500/mt is a reasonable price for deals, and
some traders said it was getting more difficult for deals
to be concluded above $1,500/mt going forward. “Some
market players say that buying interests will pick up once
the Golden Week holiday in China is over and demand
will return with renewed vigor,” said a China-based trader.
“For now, there is a difference of $20-30/mt between bids
and offers and producers are in no hurry to sell.” However,
another market source said that even if buyers returned,
prices would find little support and continue its downtrend
as producers were expected to slash prices as inventory
continues to build up in the coming weeks. “Buyers
have left the market and many traders are observing the
recent bullish activity of futures contracts on the Dalian
Commodity Exchange,” said the same market source.
“However it is all spurred from speculation as there is no
interest at all for physical cargoes.”
Latin America
Import assessments for linear low-density polyethylene
into Peru rose $5/mt week on week, assessed Wednesday
at $1,755-$1,765/mt CFR basis as Asia-origin offers
pushed prices higher. Asian-origin LLDPE was heard
offered in a range of $1,775-1,780/mt CFR basis with
90-day letter of credit. Both US and European offers were
absent this week. Offers were heard into the region as low
as $1,730/mt CFR basis, however one was a small volume
(50 mt or less) of Middle East-origin product and the
second was not repeatable and was also offered to West
Coast South America including Colombia and Ecuador.
In Brazil, CFR prices dropped $10/mt week on week,
assessed at $1,725-1,735/mt, with participants stating
the polymer market is difficult due to the economic
issues and the country’s national elections next Sunday.
Middle East-origin product was heard offered in ranges
of $1,740-1750/mt CFR basis, with one Brazil-based
buyer saying he has been receiving lower priced offers.
For exports out of Brazil to Mercosur markets, FOT Brazil
pricing was stable for the period at $1,790-$1,800/mt on
limited activity. Braskem pricing remains high according
to sources due to limited spot availability as the company
undergoes a major turnaround at its Sao Paulo olefins
and polymers complex. Regional producers were heard
increasing October pricing for the Brazilian domestic
market by Reals300 ($121/mt) according to company
Copyright © 2014, McGraw Hill Financial
october 1, 2014
sources. No deals, other offers or bids were heard by close
of assessment. FOT ba is pricing does not include freight
costs, estimated by sources at $100-$120/mt.
High-Density Polyethylene
Europe
European high density polyethylene prices were stable this
week as the lack of demand on bearish October sentiment
offset the limited availability from reduced imports. Prices
closed Wednesday at Eur1,200/mt FD NWE, Eur1,250/mt,
and Eur1,240/mt for HD blowmolding, film, and injection
respectively. In upsteam news, the Northwest European
October contract price for ethylene was fully settled at
Eur1,150/mt FD NWE, a rollover from the September CP,
sources said Thursday. The initial settlement was between
Clariant as a buyer with LyondellBasell, BP Refining and
Petrochemicals and BASF as sellers, a source from the
buyer said. This was followed by BPRP as a seller with
buyer Vinnolit. LyondellBasell and BASF confirmed. BPRP
did not confirm. Vinnolit was not immediately available
to confirm. More spot product was heard moving to the
US this week, with HDPE heard sold to the US at $1,680/
mt CFR. In the contract market prices were largely
unchanged, tracing the developments in ethylene. HD
blowmolding and injection were assessed at Eur1,332.5/
mt and Eur1,352.5/mt respectively. HD film was assessed
Eur10/mt higher at Eur1,292.5/mt, following a production
issue affecting availability. One converter said the force
majeure at LyondellBasell’s Plock unit in Poland had not
affected him sourcing product specifically, but may have
affected sentiment in the market. One producer said that
requests for HD film and bimodal were increased on the
back of production issues. LyondellBasell declared force
majeure on the supply of HDPE grade products from its
joint venture Basell Orlen Polyolefins (BOP) in Plock, the
company said in a letter dated Friday and seen by Platts.
“The BOP plant underwent an unplanned shutdown
due to a lack of ethylene availability and subsequent
technical issues prior to the planned shutdown,” said the
letter. LyondellBasell was not immediately available for
comment. The Plock polyolefins units, a joint venture
between LyondellBasell and Polish refiner PKN Orlen, has
a nameplate capacity of 320,000 mt/year of HDPE.
Africa
North African polyethylene prices fell this week on the back
of lower offers coming from Europe. LDPE, LLDPE, and
HDPE prices were assessed at $1,612.50/mt, $1,560/mt, and
$1,570/mt CFR N.Africa respectively. One trader said that
demand was poor due to an expectation of lower prices.
Kuwait’s Equate Petrochemical Co. nominated the October
Middle East contract price for HDPE-blow (high molecular)
at $1,600/mt factory delivered UAE, down $10/mt from
September, sources close to negotiations said Wednesday.
The company also nominated the October Middle East
7
 PLATTS POLYMERSCAN
CPs for its HDPE-blow (medium molecular) at $1,600/
mt FD UAE, down $10/mt from September; for HDPE-
film at $1,600/mt FD UAE, a rollover from September;
and for LLDPE at $1,630/mt FD UAE, down $20/mt. Sabic
nominated the October Middle East CPs for HDPE-film at
$1,600/mt FD UAE, unchanged from September, sources
said; for HDPE-injection at $1,600/mt FD UAE, unchanged
from September; for HDPE-blow (high molecular) at $1,610/
mt FD UAE, a rollover from September; for HDPE blow
(medium molecular) at $1,610/mt FD UAE, also unchanged;
for LDPE at $1,660/mt FD UAE, down $20/mt; and LLDPE
at $1,630/mt FD UAE, down $40/mt.
United States
US high-density polyethylene export prices were stable
week on week as sources said the market remained quiet,
with buyers awaiting October offers from producers. HDPE
blowmolding was assessed Wednesday at $1,665-$1,687/
mt FAS Houston, unchanged week on week. Sources said
a limited amount of bagged blowmolding was available
from a producer at 75 cents/lb ($1,653/mt) before freight
to ship it to the port. An offer to Brazil for US-origin
blowmolding was heard at a level that would netback to
$1,700/mt FAS Houston. No confirmed deals were heard
by close of assessment. HDPE Injection was assessed at
$1,698-$1,720/mt FAS Houston, flat week on week. No
confirmed deals were heard as sources pegged injection
prices 1-2 cents above blowmolding. HDPE high molecular-
weight film was assessed Wednesday at $1,709-$1,731/mt
FAS Houston, unchanged week on week. Sources said some
resin was available at 77 cents/lb in bags, before freight
to move it to the port. Others talked the market higher,
pointing to continued tight supply. US domestic contracts
were expected to remain flat in October, said multiple
sources, who noted that only one producer — Equistar
— had nominated a price increase, which was set to be
implemented mid-month. Following a 3 cents/lb increase,
HDPE September contracts were assessed for blow molding
at 86-87 cents/lb ($1,896-1,918/mt) delivered-railcar basis;
at 86-87 cents/lb ($1,896-1,918/mt) for injection; and at
89-90 cents/lb ($1,962-1,984/mt) for high molecular weight
film. HDPE contracts have risen 7 cents/lb in 2014. The film
and injection assessments were at record highs, surpassing
previous highs of 88.50 and 85.50 cents/lb in August
2008, according to Platts data. Blowmolding was assessed
for September at its highest level since 87.50 cents/lb in
August 2008, per Platts data. Dow Chemical sent a letter to
customers this week saying it will raise its US polyethylene
prices by 3 cents/lb ($66/mt) effective November 1.
Multiple sources said a November increase would also be
tough to implement as there were indications not all major
producers planned to push for another increase.
Asia
Asian high density polyethylene prices continued to fall
this week as buyers in China would down for the week-
long holiday that began Wednesday. The CFR Far East Asia
Copyright © 2014, McGraw Hill Financial
october 1, 2014
marker fell $15/mt week on week to be assessed at $1,540/
mt, while the CFR Southeast Asia marker fell $10/mt to
$1,560/mt and the CFR South Asia marker fell $30/mt to
$1,610/mt. Offers for Middle Eastern material were heard
around $1,570/mt CFR China with 90-day letters of credit
at the start of the week, while traders were pegging market
levels at $1,550/mt. No firm bids or trades were heard. The
downtrend in prices seen over the past few weeks stalled
late week as buyers stopped lowering bids as the Golden
Week holiday approached, market sources said. “No one
in the market is serious about buying and sellers are not
able to conclude any deals,” said a trader in Southeast Asia,
adding: “Buyers have stopped reducing their bids and there
is a standoff between them and the sellers.” A bid was heard
at $1,530/mt CFR China later in the week, with several
market sources seeing likely deal levels at $1,540-1,550/
mt. An end-user in China said the bid was too low and it
is likely the buyer was not serious in procuring material.
“A lot of companies have planned for the Golden Week
holiday and their inventory levels are well covered,” said
another trader, adding: “Buyers who are interested are
limited and preferring to see if prices will soften further.”
Another market participant said prices were around the
$1,540/mt level this week and likely to fall further as sellers
would have to reduce offers to attract buying interest.
Latin America
Talk of spot pricing for high-density polyethylene imports
into South America this week was dominated by Middle
East-origin product, with Europe-origin material largely
silent, sources said Wednesday. In Peru, blowmolding
and injection grades were assessed stable week on week
at $1,745-$1,755/mt CFR basis amid quiet trade activity.
Film also remained stable, assessed at $1,755-$1,765/
mt CFR basis, as buyers continued to retreat. A US-based
trader offered US-origin film $1,830/mt CFR basis while
Asian-origin film was heard offered as low as $1,750 but
with a late October shipping date, meaning delivery would
be outside Platts methodology specifications. US-origin
material was previously heard offered in a wide range at
$1,800-1,964/mt CFR basis for the different grades, sources
said. In Brazil, the HDPE film assessment dropped $15/mt
week on week $1,720-$1,730/mt CFR basis as Middle East
product was heard offered lower this week in the $1,740-
1,750/mt range by a US based trader. HDPE blowmolding
and injection rose $10/mt each up to $1,730-$1,740/mt.
Middle East-origin Injection was heard $1,750/mt while
blowmolding was heard this week at $1,740-1,750/mt CFR
basis. CFR blowmolding offers heard included from the US
for $1,760/mt. In Brazilian exports, neighboring countries
saw remain prices stable at $1,780-$1,790/mt FOT basis
week on week. No deals, other 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.
Braskem pricing remains high according to sources due to
limited spot availability as the company undergoes a major
8
 PLATTS POLYMERSCAN
turnaround at its Sao Paulo olefins and polymers complex.
Regional producers were heard increasing October pricing
for the Brazilian market by Reals300 ($121/mt).
Polypropylene
Europe
European polypropylene prices mirrored propylene’s
rollover this week, with the spot benchmark price flat at
Eur1,250/mt FD NWE. The October propylene contract
price fully settled last week at Eur1,105/mt FD NWE,
sources said. The rollover came despite the slump in
naphtha, as the euro fell. Naphtha collapsed to $810.75/
mt CIF NWE Tuesday, a 17-month low. Meanwhile,
the euro was trading at $1.2604/mt against the dollar
Wednesday, a near two-year low. The weakness of the
euro sustained exports from Europe to South America,
Turkey and unusually to the US, an arbitrage rarely open,
according to sources. FOB NWE PP homo was assessed
at $1,500/mt, the fall driven by the dollar strength.
In the domestic market, PP homo prices were heard at
Eur1,230-1,280/mt FD NWE, with Eur1,250/mt FD NWE
heard as a repeatable number. Offers for October were up,
sellers attributing the rise to the import window being
shut. In the contract market, European producers were
targeting a rollover-to-slight increases citing buoyant
sales. “Lot of converters historically importing are buying
from us,” one European producer said. “Producers are
optimistic about demand as the euro is weak, therefore
no additional [import] volume will come to Europe,”
one converter said, adding he was rejecting increases.
The CP was assessed flat on the week at Eur1,422.50/mt
FD NWE. In the Turkish market, local producer Petkim
reduced list prices earlier in the week, and for the third
time in September to $1,760-1,785/mt FCA Aliaga.
Petkim was not immediately available to confirm. “PP
raffia is virtually hopeless with no demand,” one trader
said, pegging offers from the Middle East at $1,500-
1,510/mt CFR with no corresponding buy interest. In
production news, issues were heard at PKN Orlen and
LyondellBasell’s joint venture petrochemical site in
Poland. The PP force majeure declared by LyondellBasell
at the end of June continued, the company on Friday
also declared force majeure on HDPE supplies from Plock.
Lyondell declined to comment. On Wednesday, there
was a fire at the PKN Orlen’s steam cracker. The olefin
unit has two production lines. One of the lines was in
start-up mode when the fire occurred. PKN said that line
is expected to start production Wednesday despite the
accident. The other line is offline and will be returned to
production once it is deemed safe to do so, PKN said.
Africa
Middle East producers nominated October list prices
for polypropylene at rollover or slight reductions in an
environment of flat demand. Sabic nominated the price
Copyright © 2014, McGraw Hill Financial
october 1, 2014
for PP-raffia at $1,580/mt FD UAE, down $10/mt from
September. Sabic was not available to confirm. The strong
dollar meant European product was being offered, one
trader said, pegging PP homo prices at $1,570/mt CFR.
The European benchmark FD NWE price was stable on
the week at Eur1250/mt FD NWE. However, the euro was
trading at $1.2604/mt against the dollar Wednesday, an
almost two year low. The weakness of the euro sustained
exports from Europe to South America, Turkey and
unusually to the US, an arbitrage rarely open, according
to sources. FOB NWE PP homo was assessed at $1,500/
mt, down $22/mt on the week. PP CFR North Africa was
assessed stable on the week at $1,570/mt.
United States
A surge in feedstock prices and unplanned outages were
fueling US polypropylene producers’ push for aggressive
increases for October, with at least two major producers
announcing double-digit hikes this week. Formosa Plastics
Corporation USA and Total Petrochemicals both announced
increases of 10.5 cents/lb for October on Tuesday, taking
some market participants by surprise. “So much for a
down-2 cents/lb for October,” a distributor source said
Wednesday. The source was referring to expectations in
early September of a possible decrease to start October.
Formosa and Total’s increase nominations were standalone,
meaning they were not tied to PGP. Formosa first began
to move away from monomer-plus formulas for contract
purposes in 2013, and Total is following suit, arguing that
PP pricing should reflect all market dynamics, not just
cost, sources have said. A majority of contracts for the US
market remain on monomer-plus basis, and for participants
tied to these arrangements, steep hikes were also possible
because of recent spot monomer behavior. Spot PGP was
heard trading Wednesday at 76.50 cents/lb pipeline basis,
while spot refinery-grade propylene was bid at levels of
74 cents/lb pipeline basis earlier this week. With PGP
contracts last settling at 72.50 cents/lb for September, the
recent developments in the spot market have emboldened
at least one olefins producer, which revised its increase
nomination up to 8 cents/lb from 5 cents/lb this week.
“Refinery-grade (propylene)” is the key,” a source with a
major PP producer said. Platts assessed September contract
prices for September at 83 cents/lb for homopolymer
injection and 84 cents/lb for fiber grade, unchanged from
August. Further pressuring the market up were planned
and unplanned outages extending into the fourth quarter.
ExxonMobil Chemical on Wednesday said it was putting
some grades of polypropylene produced at its Baton Rouge,
Louisiana plant on sales allocation because of operational
difficulties, according to a letter to customers obtained by
Platts. No further details or timeframe for the allocation was
provided in the letter. Export assessments rose $44/mt week
on week on stronger feedstock pricing, with homopolymer
injection at $1,863-$1,885/mt FAS Houston and co-polymer
at $1,885-1,907/mt FAS Houston. No export deals, offers
or bids on an FAS Houston basis were heard for the week.
9
 PLATTS POLYMERSCAN
In the absence of market activity, the assessment was
based on recent spot PGP pricing. US-origin polypropylene
continued to be disadvantaged in the international market
because of its high price levels, with CFR pricing into South
America remaining at levels of $1,700/mt for homopolymer
grades and below $1,750/mt for co-polymer grades from
regions including Asia and the Middle East, sources in Peru
and Brazil said. Back in North America, the possibility of
steep price increases had taken some market participants
in Mexico by surprise. “No one saw this two weeks ago,”
a source with a Mexico City-based distributor said. The
Mexican polypropylene market is closely tied to the US
market in pricing, given that more than half its apparent
demand is supplied by its northern neighbor, sources said.
Asia
The CFR Far East Asia marker for PP raffia grade was
assessed $5/mt lower week on week and flat day on day at
$1,480/mt Wednesday. Offers during the week were heard
between $1,490/mt and $1,540/mt on an L/C 90 days basis.
There was also an offer heard at $1,480/mt CFR China,
however this could not be verified. The market was quiet
as most market participants in China were already out due
to the Golden Week holiday starting Wednesday. “Demand
has softened since people were going to holidays and
they didn’t want too much inventory,” one supplier said.
Looking ahead, market sentiment was mixed. Some said
they expect prices to rebound a little following the long
holiday in China, as end users who kept their inventory
low will need to buy some product. On the other hand,
some sources expect market to gradually weaken. One
trader said: “Demand in China has not been picking up
and so I expect a gentle descent.” A second trader said
that new coal-to-olefin capacity this year has been putting
downward pressure on domestic PP prices in China and this
was also affecting demand for imported PP. The Southeast
Asia marker for PP raffia grade was assessed flat on week
at $1,510/mt. Offers were heard at $1,510-1,520/mt CFR
Southeast Asia. Deals were also heard concluded at $1,510-
1,520/mt CFR Southeast Asia during the week, according
to sources. “There is fear in the market. Some people saw
China prices dropping as the holidays were coming. If
China is weak, Southeast Asia will follow,” a trader said.
He added that buying sentiment has weakened. “Buyers
are holding off because they predict prices will come down
as oil prices have fallen,” he said. Meanwhile, the South
Asia marker fell amid lower offers compared with a week
earlier. The PP raffia grade was assessed at $1,535/mt CFR
South Asia, down $20/mt week on week. Offers were heard
at $1,535-1,545/mt CFR India. A trader said that although
initial negotiations started at $1,570/mt, deals were
concluded “close to $1,540/mt CFR India on an L/C 90 days
basis.” In related news, Haldia Petrochemicals’ naphtha-fed
steam cracker and associated downstream polypropylene
and polyethylene units at Haldia in India’s West Bengal
state are expected to remain shut throughout most of
October, a company source said Wednesday. “The earliest
Copyright © 2014, McGraw Hill Financial
october 1, 2014
restart date could be end of October or early November.
We have not received instruction from the planning side to
gather market information yet and so I expect the plant to
remain shut in the next couple of weeks,” the source said.
The complex was shut July 6 due to a mechanical fault at
the steam cracker. The latter can produce 700,000 mt/year
of ethylene and 350,000 mt/year of propylene and provides
feedstock to a 330,000 mt/year high density PE plant, a
370,000 mt/year HDPE/linear low PE swing plant and a
350,000 mt/year polypropylene unit.
Latin America
Polypropylene import assessments into South America were
flat this week as pricing in Asia was stable to lower. Import
assessments into Peru for homopolymer was assessed
Wednesday at $1,670-$1,680/mt CFR basis and co-polymer
at $1,710-$1,720/mt CFR basis. One Peru based buyer
indicated the prices were heard the same. No deals, offers
or firm bids were heard for the week. Previously, regional
producers and suppliers were heard offering at higher levels
but willing to negotiate product in the low-$1,700s/mt, a
trading source said. In Brazil, pricing was stable week on
week, with assessments for homopolymer and co-polymer
at $1,675-$1,685/mt and $1,715-$1,725/mt CFR basis,
respectively. The movement in Brazil and Peru has appeared
to mirror pricing trends in Asia, sources in those markets
have said. For exports out of Brazil, assessments remained
flat as lackluster demand and lower offers into the region
continued. Homopolymer was assessed at $1,650-$1,660/
mt FOT basis and co-polymer at $1,690-$1,700/mt FOT
basis. Braskem’s average export pricing for September
polypropylene was stable to August, a source with
knowledge of company pricing said this week. FOT basis
pricing, which is for Brazil product exported to Mercosur
countries, does not include freight costs, estimated by
sources at $100-$120/mt. Market watchers in Mexico are
continuing to keep an eye on US spot propylene prices,
and its contract prices for October, which could possibly
influence North American PP pricing, sources said.
Polystyrene
Europe
The polystyrene market saw mixed developments this
week in Europe, with contract prices holding stable for
the time being in the wake of the styrene CP settlement,
and spot prices continuing their descent pressurized
by imported product availability. Contract prices were
assessed unchanged week on week at Eur1,505/mt for
general purpose product, Eur1,585/mt for high-impact and
at Eur1,540/mt for expandable polystyrene. Spot prices
were assessed at Eur1,395/mt, down Eur20/mt for GPPS,
Eur1,480/mt, down Eur20/mt for HIPS, and Eur1,475/
mt, down by Eur10/mt for EPS. Feedstock styrene’s CP
for October was fully settled at a rollover Wednesday at
Eur1,390/mt. This meant that styrene producers had to give
10
 PLATTS POLYMERSCAN
away another Eur4/mt of their margin, as composite costs
were Eur4/mt up from last month due to a slight increase
in benzene. Despite the stability in euro terms, the dollar
price was down significantly — by more than $76/mt from
last month. The value of the single European currency
against dollar sank over the past month from 1.3134
September 1 when the September CP settled to 1.2604
Wednesday. Negotiations for October polystyrene CPs were
yet to start, but several sources voiced the likelihood of
them rolling over for October. One producer said, however,
that he was planning to achieve an increase for October.
“We have good order books. Imports have become less
visible. Demand is good, as all converters were expecting
a decrease in styrene and were postponing their purchases
until October. They are now knocking on the door,” he
said. Converters were targeting decreases, however, citing
a seasonal slowdown in demand. “Demand in June-July
was very high, August, as always, was low and September
was better, but not as good as expected,” a converter said.
“We do not expect any improvements in October, so it
will not be possible for producers to get a rollover this
time, let alone an increase.” In the spot market GPPS was
heard offered at Eur1,400/mt FD NWE, and HIPS was heard
offered at Eur1,500/mt. Weakness in the euro against the
dollar curtailed competitiveness of product imported, for
example, from the Far East. “The import window closed and
there might be an upward correction,” a trader said. In Asia
PS prices were stable to slightly lower amid Chinese demand
slowdown due to a public holiday and cheaper feedstocks.
GPPS was assessed at $1,605/mt CFR China, down by $5/
mt, and HIPS’s price was assessed stable at $1,705/mt.
Polymers’ freight rate from Asia to Europe was around $90/
mt, leaving the arbitrage still open on paper. Sources said
that traders were unlikely to take advantage of this arbitrage
though, as product would arrive only in November, when
demand tails off. Imports from Russia, however, continued
to have an advantage as the ruble continued to fall against
all major currencies this week: the euro was worth 50 rubles
Wednesday compared to last week’s 48.8668. “Keeping
the same euro price, Russian exporters can earn more in
rubles,” a source said. However, European traders remained
cautious about imports from Russia due to the continuing
geopolitical tensions between the West and Russia. “No
one wants to be trapped by sanctions, no one will dare to
move much product from there,” one producer said. There
was still Egyptian product on offer too both in Europe and
in Turkey. Expectations for demand in the expandable
polystyrene market in October were relatively buoyant.
Sources said that the insulation works which normally take
place ahead of winter would support the offtake, at least
in the first half of the month. As a result, producers were
keen on sustaining prices for October at the September
levels. The bulk of September contract business was settled
in a range of Eur1,540-1,560/mt FD NWE, and these should
roll over into October, sources said. “October is the last
high-season month for us. Besides, as traders bring less
product from abroad, we see a full order book for October,”
Copyright © 2014, McGraw Hill Financial
october 1, 2014
a producer said. This follows a relatively disappointing
September, when demand remained below everyone’s
expectations, and plants had to operate at around 80% of
their nameplate capacity, according to sources.
Africa
North African polystyrene prices remained unchanged this
week at $1,760/mt CFR North Africa. Sources said that the
demand for polystyrene in the region was better than the
demand for other polymers, however, supply remained
healthy too. One trader pegged spot prices at $1,800/
mt, but this level was not corroborated by the rest of the
market, and the most competitive offers which were heard
last week at around $1,780/mt were not disproved.
United States
October US domestic contract prices were expected to
drop further from September, but how much of a drop
would occur was still being discussed. Americas Styrenics
announced a decrease of 4 cents/lb ($88/mt) in its
transaction price for all grades of polystyrene produced
by the company, effective October 1, according to a
statement the company released Tuesday. Americas
Styrenics cited weakening feedstock costs, primarily in
benzene, for the decrease. The decrease announcement
came as a surprise to many in the market who were
expecting lower contract prices for October but were
not anticipating an announcement of lower prices.
Buyers were heard to be pushing for at least a 4 cents
decrease in October following another decrease in the
feedstock benzene contract price. Another seller was
heard to be seeking down 2 cents from September on
polystyrene prices. September US domestic contract
prices settled 4 cents lower than August, sources said.
September contracts were assessed at 122-124 cents/
lb delivered for general-purpose polystyrene, while
September high-impact polystyrene contracts were
assessed at a 10-cents/lb premium to GPPS at 132-134
cents/lb. The drop in September and anticipated drop
in October pricing came on the heels of tumbling
benzene contracts. Benzene contracts fell 36-37 cents
in September to settle at a 469-470 cents/gal split, and
October contracts dropped another 47-48 cents to settle
at 422 cents/gal, sources said. Since benzene contracts
peaked at 528 cents/gal in July, the contract price has
declined 106 cents as downstream demand has quieted.
A movement of 10 cents/gal in benzene is equal to 1
cent/lb in styrene and polystyrene production costs,
industry sources have said, meaning the 106 cents/gal
drop in benzene contracts would equate to between
10-11 cents in styrene and polystyrene production costs.
Because of this fall and only a 4 cent drop in September
for polystyrene contracts, sources said the anticipation
was for more of a decrease. Back in PS, demand was
heard steady, while supply was heard tight, but buyers
were having no issues getting product. In the export
market, the GPPS and HIPS assessments were stable week
11
 PLATTS POLYMERSCAN
on week at $1,995/mt FAS Houston and $2,095/mt FAS
Houston, respectively. US prices continued to be too
high compared to other regions, with HIPS offers out of
the US last heard in September at just below $2,100/mt
FAS Houston and GPPS prices heard just below $2,000/
mt FAS Houston.
Asia
GPPS: Asian general purpose polystyrene was assessed
down $5/mt week on week at $1,605/mt CFR China
and $1,645/mt CFR Southeast Asia Wednesday at the
start of China’s Golden Week holidays and amid lower
feedstock prices. Styrene monomer dipped $8/mt week
on week to $1,504.50/mt CFR China Wednesday. On
Tuesday, Taiwan’s Chi Mei lowered its offer price by
$30/mt to $1,700/mt CIF Hong Kong. Offers from other
producers were confirmed from $1,630/mt CFR China
and upward, but sellers also said there were offers close
to $1,600/mt CFR China and likely also below that level.
In Southeast Asia, an offer from a regional producer
was heard at $1,650-1,660/mt CFR Southeast Asia main
ports, and a separate major producer in the region said
prices were hovering around $1,650/mt CFR Southeast
Asia. HIPS: High-impact polystyrene was assessed stable
week on week at $1,705/mt CFR China and down
$10/mt at $1,720/mt CFR Southeast Asia. Offers were
heard this week around $1,710/mt CFR China, while
an offer to Southeast Asia from a South Korean seller
was heard around a similar level, albeit with a longer
shipment time. On Tuesday Taiwan’s Chi Mei lowered
its offer price by $50/mt to $1,820/mt CIF Hong Kong.
The premium of competing co-polymer acrylonitrile-
butadiene-styrene to HIPS has widened by more than
four-fold so far in 2014 compared with a year earlier
on falling styrene monomer prices, Platts data shows.
The premium was assessed at $210/mt Wednesday,
with HIPS stable at $1,705/mt CFR China and ABS
up $5/mt at $1,915/mt CFR China. The average price
gap between the two SM derivatives, which can have
overlapping uses especially in the electronics sector,
was only $33.80/mt for the whole of 2013, but that
has widened to $143.70/mt for the first nine months
of this year. In 2013, the spread even briefly flipped to
a discount for ABS on a couple of occasions, while in
2014 the premium has recently hovered above $200/
mt. The widening premium for ABS could result in
lower demand as HIPS prices become more competitive,
market sources said, but they also added that no big
shift towards more use of HIPS had yet been seen among
end-users in Asia. EPS: Expandable polystyrene prices
were assessed up this week by $15/mt to $1,690/mt for
general purpose and up $5/mt to $1,730/mt for flame
retardant, both on an FOB Northeast Asia basis. A Major
Chinese producer reported deals done at the price levels
assessed and with the Chinese market closed for a week
from Wednesday this week, sellers elsewhere might have
a chance to sell at higher prices.
Copyright © 2014, McGraw Hill Financial
october 1, 2014
Acrylonitrile Butadiene Styrene
Europe
The European ABS market continued to be boosted by
currency exchange movements this week, with producers
feeling a double impact of lower imports and better export
opportunities. The contract ABS price was assessed at
Eur1,695/mt FD NWE for a natural grade, stable week on
week. Average color and auto black colour grades retained
their premiums. Producers were positive that given the
current order intake for the month, they would be able to
push for an increase or at least to roll over their September
prices to further recover the margins they lost over summer.
“Q4 is normally good for ABS production in Europe. October
is the strongest month so far. We will have an opportunity
to recover some margin,” a producer said. “Besides we have
better export outlets now.” In Asia, the CFR China price was
assessed at $1,915/mt this week, up by $5/mt. The styrene
contract price for October settled at a rollover at Eur1,390/
mt. The butadiene CP settled at a Eur25/mt decrease at
Eur930/mt. It was still unclear where ACN contracts would
settle for October, because despite the rollover on propylene
and a generally bearish sentiment, the hike in ammonia
prices could lead to an increase in the ACN price, sources
said. The average spot ACN price in September was $1,995/
mt CIF Med, down from $2,015/mt in August.
United States
The US acrylonitrile-butadiene-styrene domestic assessment
was unchanged to start the month at 123 cents/lb delivered
railcar Wednesday, as the market continued to monitor
feedstocks for direction. ABS domestic pricing continued
to be talked at 123-126 cents/lb delivered, but sources said
the direction of pricing was tough to tell at this point as
feedstocks were mixed. ABS demand was steady, while supply
was available, sources said. In feedstocks styrene was assessed
0.75 cent lower on the week at 66.50 cents/lb FOB USG,
tracking lower feedstock benzene spot and contract prices.
Spot benzene fell 5 cents on the week, assessed Wednesday
at 422 cents/gal FOB USG, while the October US benzene
contract price settled 47-48 cents lower than September
at 422 cents/gal, sources said. In butadiene, spot pricing
dropped 2 cents on the week to an assessment at 53 cents/
lb CIF USG Friday on weak demand and ample supply. The
October US butadiene contract settled 2 cents lower than
September at a 54-60 cents/lb split, sources said. The US ACN
export assessment was stable on the week at $1,925/mt FOB
USG Tuesday. ACN feedstock propylene was expected to rise
in October, with contract nominations heard as much as 8
cents/lb higher than September, sources said.
Asia
Asian acrylonitrile-butadiene-styrene was assessed up $5/
mt week on week at $1,915/mt CFR China and down $15/
mt at $1,910/mt CFR Southeast Asia Wednesday in a mixed
market ahead of China’s week-long Golden Week holidays
and falling feedstock prices. Major producer Taiwan’s Chi
12
 PLATTS POLYMERSCAN
Mei lowered its offer by $30/mt to $2,000/mt CIF Hong
Kong Tuesday, but a buyer in Hong Kong said this was still
considered high as retail prices for Chi Mei’s material were
only $2,000/mt at the moment. Other producers were heard
to be offering as low as $1,910-1,920/mt CFR China, but
the lowest confirmed offer and reported deal level this week
was $1,940/mt CFR China, from a South Korean producer,
although the deal could not be confirmed with any buyer.
In Southeast Asia, a South Korean seller was able to offer at
$1,900-1,920/mt CFR Southeast Asia, depending on freight
costs, but added demand in the region was weak. Looking
at feedstock prices, styrene monomer fell $8/mt week on
week to be assessed at $1,504.50/mt CFR China Wednesday,
while butadiene fell a sharp $75/mt over the same period
to $1,435/mt CFR China. Acrylonitrile fell $25/mt week
on week to $2,010/mt CFR Far East Asia, assessed Tuesday.
Based on these prices and a conversion cost of $280/mt,
the breakeven price of ABS was estimated at $1,900.50/
mt, down $22.30/mt from the week before. The premium
ABS commands over competing co-polymer high-impact
polystyrene has widened more than fourfold to date in
2014 on falling SM prices, Platts data showed. The premium
was assessed at $210/mt Wednesday, with HIPS at $1,705/
mt CFR China and ABS at $1,915/mt CFR China. The
average price gap between the two SM derivatives, which
can have overlapping uses especially in the electronics
sector, was $33.80/mt over 2013, but widened to $143.70/
mt over the first nine months of this year. In 2013 the
spread even briefly flipped to a discount for ABS on a
couple of occasions, while in 2014 it has recently hovered
above $200/mt. The widening premium for ABS could result
in lower demand as HIPS prices become more competitive,
market sources said. However they added no big shift
towards HIPS had yet been seen in Asia.
Polyethylene Terephthalate
Europe
European polyethylene terephthalate contract prices
were assessed at Eur1,075/mt, unchanged this week on
balanced demand/supply as weak demand contrasted
with the start of the turnaround season. Spot prices, on
the other hand, rose $5/mt to be assessed at Eur1,055/mt
as suppliers were able to achieve firmer prices. Neogroup
has this week started a six-week shutdown of one of two
lines at its 310,000 mt/year Klaipeda, Lithuania, plant,
a company source confirmed Wednesday. “Half of the
factory [one line] will be closed — we are shutting down
one line til mid November [and] will be running 18,000
mt per that period,” the Neogroup source said. It marks
the start of a series of scheduled plant maintenances in
Europe, with Indorama’s Rotterdam, Novapet’s Barbastro,
Spain, and Equipolymers’ Schkopau, Germany, shutdowns
following that. In total, this will take out the equivalent
of approximately 865,000 mt/year of capacity in October.
With the the shutdown period in mind, PET producers
Copyright © 2014, McGraw Hill Financial
october 1, 2014
were already looking for a rise in both virgin spot and
contract prices for October. One producer said that it
was targeting a spot price of Eur1,070-1,090/mt FD NWE.
Producers also pointed to the weaker euro versus the
dollar which has dropped by around 10% to $1.2604 on
October 1, from $1.3931 on May 6, according to Platts
data. Despite the producer clamor for higher prices,
consumers and traders both said that with the addition of
PET capacity going forward buyers would not accept prices
above the Eur1,050-1,070/mt FD NWE level. Contract
expectations for October were reported at a Eur20-30/
mt premium above the spot price or at around Eur1,080/
mt FD NWE. One buyer felt that these twin arguments of
the weak euro and the maintenance period were likely to
be counterbalanced by additional PET capacity coming
into the market and the weak seasonal demand inherited
from the summer. “We had a bad summer, always weak
demand. These two arguments are really killing the rest
[the producers’ reasons]. This is the time that you are
offering October [volumes] but nobody is in a rush or
needs to cover as they have so many [supply] options,”
a trader said. The same source said that a deal may have
even traded as low as Eur1,040/mt FD Germany although
this level could not be corroborated. Over the past year,
new plants have already been opened in the UK and
Belgium, as well as in Egypt and Turkey, adding around
842,000 mt/year. In the next few months, India’s JBF
Industries is expected to start its second 216,000 mt/year
PET line in Geel, Belgium, and Polyplex is expected to
start its 210,000 mt plant in Corlu, Turkey, after a year’s
delay. In addition, EIPET’s second line in Ain Sokhna,
Egypt, would add another 210,000 mt/year of capacity
and serve Europe as well as Asia and the US. Meanwhile,
Equipolymers has delayed the start of a scheduled
maintenance at its 350,000 mt/year Schkopau facility in
Germany until the end of October, a company source said
Monday. The maintenance, which takes place once every
four years, was originally due to start on October 16. The
company plans to take down one of the plant’s two lines
for five to six weeks. In the upstream contract market, the
NWE September monoethylene glycol contract settlement
was fully settled at Eur920/mt ($1,172/mt) FD NWE,
Shell confirmed Tuesday, settling with consumer Arteco.
PET producer Indorama confirmed settling the initial
September settlement with Ineos last week. Ineos was not
available to confirm. The initial August CP of Eur943/
mt was fully settled last week with Indorama and Ineos
settling, whist Indorama also confirmed initially settling
the September contract at Eur920/mt.
US
Spot PET prices were assessed at 1,554-$1,576/mt DDP
US West Coast (71 cents/lb), up $33/mt week on week.
Sources talked prices in the 70-72 cents/lb range A market
source noted that sellers were offering product to the US
above normal netback levels due to ongoing tightness
in the market because feedstock PTA shortages. Prices in
13
 PLATTS POLYMERSCAN
Asia remained steady this week, assessed at $1,208/mt
FOB Northeast Asia and $1,248/mt FOB Southeast Asia, in
a quiet market as China began a weeklong public holiday.
There were some expectations that US capacity could
pick up later in the month as BP was expected to restart
the fire-damaged PTA unit at its Cooper River, South
Carolina, facility. However, sources cautioned that supply
could still remain tight as the facility would likely run at
about 50% capacity initially, with one source adding that
it and may not be back at full run rates until February.
September US PET contracts were assessed at $1,687-
$1,709/mt (76.5-77.5 cents/lb), with multiple sources
saying contracts settled at 76-78 cents/lb for the month.
Depsite tightness in the market, there was some talk that
domestic prices could see a marginal drop in October as
feedstock pricing continued to move lower. Spot PX was
assessed Wednesday at $1,150/mt FOB USG, down $40/
mt week on week. The US paraxylene contract, the key
variable used to set the PTA price, had not been settled
for October. The September PTA price was heard set at
56.47 cents/lb, a decrease of 2.68 cents/lb from August.
US MEG contracts for fiber and PET makers were expected
to move slightly lower in October — despite talk that
Copyright © 2014, McGraw Hill Financial
october 1, 2014
North American producers keeping prices steady —
because Asian contract price announcements were down
$30-60/mt from September levels.
Asia
Asian polyethylene terephthalate prices were assessed
flat week on week at $1,208/mt FOB Northeast Asia and
$1,248/mt FOB Southeast Asia Wednesday, as major China
market was quiet on the first day of a weeklong public
holiday. Producers in South Korea, Malaysia and Indonesia
said demand remained thin, given the off-peak season
from European bottle makers and a weak euro against
the US dollar. “PET inventories are currently below safety
levels,” said a Malaysian producer. PET demand should
begin to pick up before the end of Q4, as inventories have
to be replenished for the Christmas and New Year peak
seasons, suppliers said. PET producers in Southeast Asia are
said to be operating at 80-85% of capacity. A South Korean
producer said small volumes of 100-500 mt parcels have
been sold to Vietnam at $1250-1,260/mt CFR. Another
South Korean producer has declined sales to China,
preferring to offer to the CIS/Russian market at $1,230/mt
Fob Korea for 500-mt parcels.
14
 PLATTS POLYMERSCAN october 1, 2014

Polymer Feedstocks: Olefins

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

Poly Grade Contract Price (SEP ): 72.500-72.500 Delivered Platts Global Ethylene Prices ($/mt)
Chem Grade Contract Price (SEP ): 71.000-71.000 Delivered
Asia ($/mt)
1800
Spot Friday Weekly Average CFR FE Asia FD NWE FAS Houston
FOB Korea 1294-1296 1296.0-1298.0
CFR Taiwan 1304-1306 – 1600
CFR SE Asia 1234-1236 –
FOB Japan 1249-1251 –
CFR China 1344-1346 1349.00-1351.00
1400
Asian ethylene spot assessments reflect LC 0-30 days. CFR SEA = CFR Indonesia/Thailand.

Polymer Feedstocks – Ethylene Glycol Assessments 1200

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

Copyright © 2014, McGraw Hill Financial 15

 PLATTS POLYMERSCAN
Ethylene
Europe
The October European ethylene contract price settled
at Eur1,150/mt FD NWE Thursday, a rollover on
the month. The initial price was set by Clariant as a
buyer with LyondellBasell, BASF and BP Refining and
Petrochemicals. It was followed by Vinnolit with BPRP.
All parties confirmed. The CP rollover came despite
the slump in feedstock naphtha. Expectations for the
settlement had been mostly bearish because of naphtha.
It closed Friday at $817.75/mt CIF NWE, an more
than 15- month low; by contrast, when the ethylene
CP settled for September on August 28, naphtha was
trading at $868.25/mt CIF NWE. The rollover came
also despite a further dip in spot prices to Eur905/mt
FD NWE. Abundant supplies and falling naphtha prices
continued to pull prices down, sources said. Three trades
for September delivery were heard this week: Eur910/
mt FD NWE for 2,000 mt was done twice and this fell
to Eur905/mt FD NWE for 500 mt on Thursday. In the
deepsea market, a 12,000 mt cargo was fixed to Asia,
for H1 October loading. Sources said that freight had
climbed to $400/mt for cargoes less than 5,000 mt,
but was in the low $300s/mt for this large fixture. The
Asian market was also getting saturated with European
product. The CFR Northeast Asia ethylene benchmark
fell $5/mt day on day to be assessed at $1,550/mt
Friday. As the dollar continued to strengthen, the CIF
NWE price was assessed stable on the week at $1,120/
mt. The euro hit fresh lows against the dollar trading
at $1.2698 Friday afternoon. In production news,
Borealis will permanently shut its Burghausen high
density polyethylene plant in Germany this weekend,
a company spokeswoman said Friday. The HDPE plant
will be permanently shut as an OMV cracker at the same
site begins a maintenance outage, she added. The OMV
steam cracker at Burghausen has a capacity of 450,000
mt/year. The cracker will undergo maintenance through
mid-November, Borealis previously said. Also, Eni will
permanently close its 490,000 mt/year steam cracker
at Porto Marghera in northern Italy and mothball the
aromatics plant there, it said in a statement Tuesday.
The cracker was temporarily idled in January this year
on poor economic conditions.
United States
US spot ethylene dropped 5.5 cents week on week,
assessed Friday at 70.5-71 cents/lb FD USG for September
delivery, following positive sentiment from a mid-week
restart of production capacity expansion, sources said.
US olefins producer LyondellBasell is starting up its
800 million lbs/yr expansion of its 1.75 billion lbs/yr
steam cracker in La Porte, Texas, a company source with
knowledge of operations said Wednesday. “We are in
the process of commissioning the new equipment; new
furnaces expected to be on line soon,” the source said.
Copyright © 2014, McGraw Hill Financial
october 1, 2014
Market participants said that both of the furnaces at the
La Porte project are expected online by the end of the
month, however the company source did not confirm
the exact time frame. October deliveries marked a 5.25
cents/lb drop for the week assessed at 67.5-68 cents/lb FD
USG. ExxonMobil Chemical is also expected to complete
the ongoing turnaround at its Baytown Olefins Plant
in Baytown, Texas, in late October. In markets Friday,
September was heard offered at 73 cents/lb MtB Wms,
while October bids were heard at 67 cents/lb MtB Wms.
On Thursday, October was heard traded four times as low
as 67.75 cents/lb MtB Wms and as high as 69.25 cents/lb
MtB-other, while September and March were heard traded
at 70.75 cents/lb MtB Wms and 60.25 cents/lb MtB Wms.
One October deal was heard Wednesday at 68.5 cents/
lb MtB Wms, while April and May were each heard
concluded at 61.75 cents/lb MtB Wms. On Tuesday,
four December deals were heard at 65.25-66.5 cents/lb
MtB Wms, while October was heard concluded at 68.25
cents/lb MtB Wms. September was heard traded twice
on Monday at 76 cents/lb MtB-other. Downstream, US
HDPE contract prices climbed 3 cents/lb for September, as
producers were heard successful in their attempts to raise
prices for the first time since February. HDPE contracts
have risen 7 cents/lb since the start of the year. Earlier in
the week, Equistar Chemicals said in a letter to customers
that it plans to implement an additional 3 cents/lb
increase for all grades of North American PE effective
October 15. Additional producers were yet to follow
Equistar’s lead by time of publications.
Latin America
Ethylene export availability out of Brazil remained limited
because of a plant turnaround, but strong pricing in the
US Gulf Coast made for a tempting proposition, market
sources said this week. “We don’t see a big surplus right
now,” a source close to Braskem said. “But, of course, the US
market is really interesting right now regarding the level of
prices.” The Brazilian producer was in the midst of a 35-day
turnaround at its Sao Paulo steam cracker and complex,
which has an ethylene production capacity of 700,000 mt/
year. The mandatory turnaround, which began September
6, is expected to conclude October 10. Spot ethylene was
assessed Friday at 70.5-71 cents/lb ($1,554-$1,565) FD USG
after hitting all-time highs of 76.25 cents/lb a week earlier.
In Argentina, Dow ethylene production at Bahia Blanca was
running under normal conditions, a source with knowledge of
company operations said. Last week, a source with knowledge
of company operations confirmed Dow was readying a 5,000-
mt volume for export out of Bahia Blanca during the first
week of October. In downstream markets, polyethylene prices
continued to trend higher in Brazil, with Dow and Braskem
heard raising prices again for October. Dow Brasil is seeking
a Reals 200/mt ($83/mt) increase on domestic polyethylene
prices effective October 1, the company said in a letter to
customers that was obtained by Platts. Import prices into the
region were mixed amid lackluster demand.
16
 PLATTS POLYMERSCAN
Asia
The CFR Northeast Asia ethylene benchmark fell $5/
mt day on day to be assessed at $1,550/mt Friday as spot
demand from China wanes ahead of the long holiday in
early October. Ethylene supplies increased this week with a
spot 3,000-4,000 mt cargo heard sold for October loading
from Taiwan. The arbitrage window from Europe to Asia
remains open, with 9,000-12,000 materials heard fixed for
H1 October loading this week. Late Thursday, an October-
arrival cargo was heard sold at $1,550/mt CFR China. “It
seems that the Asian ethylene market weakened a little
because of the Chinese national day holidays,” a trader
said. China’s petrochemical demand typically decreases
around early October due to the annual long holiday. But
the price decline in the Asian ethylene market was limited
due to planned maintenance of steam crackers, especially in
South Korea. “Spot ethylene supplies from South Korea are
limited because of cracker shutdowns, which seems to be
supporting the Asian ethylene market,” another trader said.
FOB Korea ethylene ticked down $5/mt week on week to be
assessed at $1,510/mt Friday. CFR Southeast Asia ethylene
was assessed flat day on day at $1,515/mt Friday. Supplies
were reported to be tight as Singapore’s Shell is due to shut
its naphtha-fed steam cracker soon. Shell’s 800,000 mt/year
steam cracker at Pulau Bukom is due to be shut for about
three months for annual maintenance and debottlenecking.
Ethylene Glycol
Europe
European MEG prices were assessed at Eur795/mt FCA
NWE, stable versus last week’s assessment on balanced
demand/supply as sellers were not budging to lower offers
from the Eur810/mt FCA level. Buy interest was supported
at Eur780-790/mt in the week that the August contract
was settled and an initial September contract was reported
settled also. No full confirmation had yet been received.
DEG prices meanwhile softened to Eur1,095/mt FCA as
offers were seen softer amid weaker buy interest. Offers
were seen below Eur1,100/mt FCA. The double NWE MEG
contract settlement was reported done Friday, with the
August contract fully settled at Eur943/mt ($1,201/mt) FD
NWE, while an initial September was reported settled at
Eur920/mt ($1,172/mt), consumer Indorama confirmed
Friday. The August settlement was a rollover. Indorama
confirmed settling both the August and the initial
September settlements with Ineos. Ineos was not available
to confirm. The initial August CP was settled between Shell
and antifreeze coolants producer Arteco. A second producer
said that although it would find an August contract at
Eur943 acceptable, “the Eur920 is too low.” Upstream, the
August ethylene CP was Eur15 lower settling at Eur1,205/
mt FD NWE, while the September CP settled at Eur1,150/
mt, down Eur50/mt. An initial ethylene October CP was
settled at Eur1,150/mt FD ($1,463) NWE, a rollover on
the September, sources said. The settlement was between
Copyright © 2014, McGraw Hill Financial
october 1, 2014
Clariant as a buyer with LyondellBasell, BP Refining and
Petrochemicals and BASF as sellers, a source from the
buyer said. LyondellBasell was not immediately available
to confirm. BPRP did not confirm. BASF confirmed. The
expectations for the settlement have been mostly bearish
following the recent slump in feedstock naphtha. Naphtha
closed Friday at $817.75/mt CIF NWE.
United States
US monoethylene glycol prices were assessed Friday at
44.50-45.50 cents/lb FOB USG, down a half cent week on
week. Sources said MEG deals were scarce and there had
been little-to-no price movement, with multiple sources
pegging barge prices at 45 cents/lb. “MEG deals are scarce
but prices are holding flat in the mid-40s,” a trader source
said. High spot ethylene prices and production issues have
helped keep US prices relatively steady despite declining
prices in the Asian markets. Front-month spot ethylene
prices declined 5.5 cents/lb week on week, assessed Friday at
70.5-71 cents/lb FD USG for September, while October was
assessed at 67.5-68 cents/lb FD USG. Asian MEG prices were
mostly stable week on week, with sources saying that short-
covering by traders had helped prop the price up Friday.
Platts assessed Asian markets Friday at $908/mt CFR China
and $911/mt CFR Southeast Asia, down $1/mt week on
week. There were expectations that US MEG demand would
pick up as antifreeze season neared, sources said. September
US MEG contracts for fiber and PET makers were assessed
at 48.85 cents/lb ($1,077/mt) based on producer discounts
for large-volume buyers. There was market talk that North
American producers were rolling over prices for October.
“Ethylene price is still too high to cut glycol prices,” a buyer
source said. Asian contracts were set to move lower, which
could lead to some price decreases for US buyers. MEGlobal
and Sabic both nominated October prices at $1,120/mt
CFR main port, down $60/mt and $30/mt respectively.
Shell nominated its October ACP at $1,100/mt CFR Asian
main ports, down $60/mt. In production news, sources said
LyondellBasell’s Bayport, Texas, ethylene oxide unit was
expected to return to operations during the first week of
October. Earlier this month, the company extended its EO
force majeure event and MEG allocations due to ongoing
production issues. Sources also said MEGlobal’s Prentiss
1 unit in Alberta had returned to operation. Company
confirmation was not available Friday.
Asia
Asian monoethylene glycol prices were stable to slightly
weaker this week, slipping by $1/mt week on week to $908/
mt CFR China and $911/mt CFR Southeast Asia on Friday.
But the fall was limited due to short-covering by traders.
H1 October cargoes were trading at around $883/mt-$900/
mt earlier this week, before finishing the week higher at
$905/mt CFR China. H2 October cargoes were trading at
around $887/mt-905/mt, before finishing the week higher
at $910/mt CFR China on Friday. “Prices could have been
substantially lower, if traders had not covered their short
17
 PLATTS POLYMERSCAN
positions, hence a floor was placed on the low end”, a
trader said. Additionally, the ongoing decline MEG futures
dampened the physical MEG market. September futures
on the Huaxi Commodity Exchange closed at Yuan 6,820/
mt on Monday, with the settlement falling to Yuan 6,766/
mt by Friday. Chinese domestic prices fell by Yuan 80/mt
to be assessed at Yuan 6,570/mt Friday, equivalent to $865/
mt on an import parity basis. Meanwhile MEG inventory in
eastern China declined to 862,000 mt Friday, from 882,000
mt a week ago. In contract news, Shell has nominated its
October ACP at $1,100/mt CFR Asian main ports, down
$60/mt from its September nomination.
Propylene
Europe
The Northwest European October contract price for
propylene fully settled at Eur1,105/mt ($1,410/mt) FD
NWE Thursday, a rollover from the September contract
price, sources said. The initial settlement was between
Oxea as a buyer with BP Refining and Petrochemicals
and Dow Chemical as sellers, the buyer said. BPRP
did not confirm. Dow confirmed. This was followed
by DSM as buyer and Sabic as seller. DSM confirmed,
while Sabic wasn’t immediately available for comment.
European polymer grade propylene spot prices fell this
week by Eur6/mt, closing at Eur1,044/mt FD NWE, as
participants delayed trading activity amid bearish October
expectations. While demand was said to be weak, the
market was relatively balanced as supply was also reduced
following a number of maintenances, one producer said.
BASF began a turnaround at its No.1 220,000 mt/year
Ludwigshafen cracker in Germany September 11 which
is expected to last until mid-October, BASF said. Petkim
started a 105-day maintenance period July 21 to upgrade
cracker capacity by 13% to 585,000 mt/year. The OMV
steam cracker at Burghausen has a capacity of 450,000 mt/
year and will undergo maintenance from this weekend
through to mid-November, a company spokeswoman
said. Two PGP trades were heard done this week. One for
500 mt, FD NWE, September delivery priced at MCP -7%.
The buyer confirmed. The second deal was for 1,900 mt,
CIF NWE, at October MCP -7%. The buyer confirmed.
Meanwhile downstream, the European polypropylene
market stabilized as hesitant participants awaited the
propylene contract price settlement. Spot and contract
prices moved sideways this week at Eur1,250/mt FD NWE
and Eur1,422.50/mt FD NWE respectively. Both are at lows
not seen since the end of February.
United States
US spot refinery-grade propylene jumped 8 cents week on
week, assessed Friday at 73.25-73.75 cents/lb delivered,
following talk of production disruptions, tight supply and
strong gasoline pool demand, sources said. In spot markets
Friday, October bids were heard at 72-73 cents/lb MtB-pipe,
Copyright © 2014, McGraw Hill Financial
october 1, 2014
against no offers or trades. The assessment is the highest since
June 2, 2011’s assessment of 76 cents/lb delivered, according
to Platts data. Polymer grade material jumped to a 19-month
high, assessed at 74.5-75 cents/lb delivered, as October
PGP was heard bid at 70 cents/lb MtB-pipe and offered at
77 cents/lb MtB-pipe. After Platts Market on Close process
was completed, one October deal was heard at 77 cents/
lb MtB-pipe. The deal was not included into the assessment
calculation due to its timing. One trading source said that
the deal was concluded above the current market level. Prior
to the Friday deal at 77 cents/lb MtB-pipe for October, PGP
was heard traded on Monday and Tuesday, each time at 74.5
cents/lb MtB-pipe for September deliveries. No fresh chemical
grade deals, offers or bids were heard throughout the week.
The assessment spiked 6.5 cents/lb to be assessed at 73.75-
74.25 cents/lb delivered, splitting the difference between RGP
and PGP assessments. In inventories, stocks of propylene for
non-fuel use marked their seventh-consecutive weekly decline,
dropping 171,000 barrels to 3.122 million barrels in the week
ended September 19, US Energy Information Administration
data showed Wednesday. In contracts, Shell Chemicals
nominated its October US CGP contract price at 74 cents/
lb, a 3-cent increase from October, sources said Friday. One
trading source cited a letter from the company stating that
“effective October 1, 2014, Shell Chemical LP will increase
the price of chemical grade propylene by 3 cents to 74 cpp.”
The nomination followed ExxonMobil Chemical’s October
propylene nomination which called for a 5-cent increase at
77.5 cents/lb and 76 cents/lb for PGP and CGP, respectively,
multiple sources said Wednesday.
Latin America
Propylene trading remained thin this week, as no spot
exports from the region were heard, and no material was
unloaded at Mexico’s Altamira port this week, port records
showed. Pemex Petroquimica’s September prices were
previously announced at $1,349/mt for chemical-grade
propylene and $1,593/mt for polymer-grade propylene for
the month, a source familiar with company pricing said.
All Pemex petrochemical and refinery plants were heard
running at capacity, a source with knowledge of company
operations said. Participants with an eye on the international
markets saw European polymer-grade propylene spot prices
fall this week by Eur6/mt, closing at Eur1,044/mt FD NWE,
as participants delayed trading activity amid bearish October
expectations. In the US, spot RGP rose 8 cents/lb ($176/mt)
to 73.50 cents/lb delivered, levels not seen since February
2013, while spot PGP rose 4.25 cents/lb week on week to
74.75 cents/lb for October delivery. A source with a Mexican
polypropylene producer said North American PGP contracts
could rise 4-5 cents/lb for October, which would likely lead
to a rise in PP in that market.
Asia
Asian propylene prices were $5-10/mt lower week on
week, as demand softened ahead of the upcoming Chinese
Golden Week holiday in China next week and expectations
18
 PLATTS POLYMERSCAN
of more supply. The CFR China marker was assessed at
$1,345/mt, $10/mt lower week on week and flat day on
day. In eastern China, demand has softened ahead of
the long holiday. There were no deals heard done Friday,
but notional levels were heard at $1,340-1,345/mt CFR
East China. Also, buyers held back amid uncertainties
and expectations of more supplies coming on stream
next month. “Haiyue is pressured to run in higher ratios
because their raw material propane will arrive soon. They
have to reduce their [propane] tank capacity,” a source
said, referring to Haiyue’s 600,000 mt/year propane
dehydrogenation plant in China’s northeastern Zhejiang
province. Meanwhile, a company source from Sanyuan
Petrochemicals said Friday that its 450,000 mt/year PDH
plant is still “trying to improve purity level and they are
still targeting end September” to achieve commercial
production of polymer grade propylene. “I can say that
production is not stable and the purity level can vary,”
the source added. Last week, another source from Sanyuan
said that company’s PDH plant had achieved chemical
grade propylene with a 95% purity level and that the
plant was running at 60% of capacity. In northern China,
particularly in Tianjin, there was some buying interest amid
market talk that Tianjin Bohai’s 600,000 mt/year propane
dehydrogenation plant was shut Wednesday due to a glitch.
However, Tianjin Bohai could not be reached for comment
and further details are not known. A Chinese end-user said
that deals were heard concluded at $1,350-1,355/mt CFR
North China however this could not be confirmed. An offer
was heard at $1,365/mt, while a bid was heard at $1,350/mt
CFR North China. JX was heard to have sold two cargoes,
each 1,500 mt, on September 25 at $1,352/mt CFR China,
for H2 October arrival. However, further details are not
known. Meanwhile, the FOB Korea marker was assessed $5/
mt lower week on week at $1,295/mt. Cargoes for loading
in October from South Korea were still limited, according to
sources. Only Samsung Total was heard offering at $1,300/
mt FOB Korea. A deal was heard concluded this week at the
same level, however this could not be confirmed. Taiwan’s
Formosa was heard to have sold cargoes at $1,305/mt FOB
Mailiao. One source said Formosa sold a cargo of at least
1,500 mt to a a trader last week or early this week. A second
source said the company sold a 2,500 mt cargo Thursday.
Market participants said that Formosa has been looking to
sell about 10,000 mt of propylene since last week. Formosa
could not be reached for comment. Meanwhile, Chinese
buyers were heard bidding at $1,300/mt FOB Mailiao.
Butadiene
Europe
The Northwest European October contract price for
butadiene was settled Friday at Eur930/mt FD NWE,
down Eur25 on the month, sources said. Sabic and Total
Petrochemicals said that they settled with three customers
each without naming the counterparties. A source from
Copyright © 2014, McGraw Hill Financial
october 1, 2014
buyer Solvay said he settled with two producers, also
without naming the counterparties. The expectations for the
settlement have been mostly bearish following the recent
slump in feedstock naphtha and lengthening butadiene
supplies in Europe. Naphtha closed Friday at $819.50/mt
CIF NWE: when the butadiene contract price settled for
September at Eur955/mt FD NWE on August 28, naphtha
was trading at $868.25/mt CIF NWE. In the butadiene spot
market, the collapse in Asian butadiene and natural rubber
prices spooked the butadiene market. FOB NWE prices were
assessed at $1,100/mt, a year low. Prices were down $50/mt
on the week. FD NWE prices were assessed at Eur865-868/
mt FD NWE. “FD NWE prices could be anywhere at Eur800/
mt FD NWE or Eur850/mt FD NWE, no one is trading,”
one trader said. The CFR China butadiene marker was
assessed down $85/mt from the previous week at $1,440/
mt Friday. The downward spiral came from falling natural
rubber prices which alarmed synthetic rubber buyers, as they
are substitutes. The Asian styrene-butadiene-rubber market
was assessed down $40/mt week on week at $1,940/mt
Friday, a low since early August. In production news, OMV’s
450,000 mt/year steam cracker in Burghausen, Germany,
will undergo a turnaround beginning this weekend till
mid-November, a company spokeswoman from Borealis
said. Eni will permanently close its 490,000 mt/year steam
cracker at Porto Marghera in Northern Italy and mothball
the aromatics plant there, it said in a statement Tuesday. The
cracker was temporarily idled in January this year on poor
economic conditions. In the crude C4 market, the factor was
marginally higher this week at 0.98 on the back of naphtha
outright prices extending their fall, sources said. Outright
C4 was assessed at $801.4/mt, down $5.48/mt on the week.
Naphtha closed Friday at $817.75/mt CIF NWE, a more than
15-month low. Sources said that C4 supply was adequate,
pegging the factor at just below 1. One producer reported
a 2,000 mt deal for C4 at naphtha flat plus a small quality
premium due to above-average butadiene content. In the
raffinate-1 market, the factor to naphtha was assessed stable
on the week at 1.19. The drop in naphtha, however, pulled
outright prices down to $973/mt, down $27/mt on the week.
Derivative MTBE prices were also down on the week, adding
pressure to outright Raffinate prices. MTBE was assessed at
$1,089/mt FOB ARA Friday, down 2.5% on the week.
United States
Nominations for the October US butadiene contract
price were heard at a rollover to down 2 cents/lb this
week, but the contract remained unsettled by time of
publication, sources said. ExxonMobil reduced by 2 cents/
lb ($44/mt) its initial October US butadiene contract
nomination to 60 cents/lb ($1,323/mt), sources said Friday.
ExxonMobil could not be reached for confirmation. Shell
Chemicals and LyondellBasell each nominated October
US butadiene contracts at a rollover from September at
56 cents/lb ($1,235/mt), while TPC Group nominated its
October US butadiene contract down 2 cents/lb ($44/mt)
from September at 54 cents/lb ($1,190/mt), sources said
19
 PLATTS POLYMERSCAN
Wednesday. Producer confirmation on the nominations
could not be obtained. The nominations exclude any
discounts or adders that producers might add, sources
said. Despite having all nominations from producers,
sources said the contract continued to be unsettled and
there could be further movements. The nominations were
within expectations for October contracts that had ranged
from unchanged from September to down 2-3 cents. The
September US butadiene contract settled 4 cents/lb lower
than August at a 56-62 cents/lb split settlement, with
LyondellBasell, Shell Chemicals and TPC Group at 56
cents/lb and ExxonMobil at 62 cents/lb, sources said. The
settlements excluded any discounts or adders, sources said.
Producer confirmation on the September settlement was
unavailable. In the spot market, the assessment dropped
2 cents on the week to 53 cents/lb CIF USG on continued
weak demand as ample supply. The assessment was at its
lowest since November 27, 2013, when it was at the same
level, according to Platts data. No import deals, bids or
offers were heard this week as the arbitrage from Europe
and Asia remained closed, sources said. The import market
was notionally talked in the low- to mid-50s cents/lb,
but sources continued to describe the market as tough to
peg due to a lack of a spot market. In order to work the
arbitrage from Europe, with European butadiene assessed
Friday $50/mt lower on the week at $1,100/mt FOB
Rotterdam and freight estimated at $220/mt, US prices
would need to be at least at 60 cents/lb CIF USG, according
to Platts data. October US domestic offers were heard at 54
cents/lb delivered pipe and FOB barge basis Friday, with
that market also talked in the low- to mid-50s cents/lb.
Asian prices also dropped on the week, falling $80-$85/
mt to assessments at $1,405/mt FOB Korea and $1,440/mt
CFR China Friday. There had been discussion of a possible
export arbitrage to Asia in August and the first half of
September, but sources said nothing was booked as freight
to Asia was $400-$500/mt. Sources said the US market
remained quiet as tanks are full and downstream demand in
the styrene-butadiene rubber market remained slow. Sources
said the market would likely remain quiet in October.
Latin America
Butadiene trading into Latin America was absent this
week as no trades, bids or deals were heard and no cargo
was unloaded at Mexico’s Altamira port. Mexico is the
largest importer of the olefin from Brazil while Braskem
is the main producer and exporter in the region.
Braskem’s Sao Paulo olefins plant remains in turnaround
and scheduled for restart October 10, per a company
source. The cracker has a butadiene capacity of 90,000
Copyright © 2014, McGraw Hill Financial
october 1, 2014
mt/year. In international markets, the US butadiene
spot assessment fell 2 cents/lb ($44/mt) this week to 53
cents/lb amid weak buying interest and ample supply
while the European FOB NWE prices dropped $50/mt on
the week assessed $1,100/mt, a year low.
Asia
The Asian butadiene market dived $80-85/mt week on
week Friday amid thin trading ahead of the National
Day holidays in China next week. The CFR China
butadiene marker was assessed down $85/mt from
the previous week at $1,440/mt Friday, while the CFR
Taiwan marker was assessed down $85/mt at $1,450/
mt. Some deals were heard done at $1,450/mt CFR
China and $1,460/mt CFR Taiwan, with offers falling
to $1,450/mt CFR China Friday, while bids were heard
at the low-$1,400s/mt CFR China. Trading sources said
butadiene buying appetite from South Korea — which
has been pushing up the Asian butadiene market
recently — completely faded this week as end-users
there had purchased their requirements for October. “So
now, sellers need to find buyers in China or Taiwan,”
said a trading source. Demand for spot butadiene
cargoes in China and Taiwan was not strong due to
sufficient local supply, said sources. On Friday, the
local butadiene price in China sank Yuan 400/mt day
on day to be assessed at Yuan 10,500/mt, or $1,408/
mt on an import parity basis. The FOB Korea butadiene
price also dropped $80/mt from the previous week to
be assessed at $1,405/mt Friday. Further pressure on
the Asian butadiene market came from the rapidly
falling downstream synthetic rubber market. The Asian
styrene-butadiene-rubber market was assessed down
$40/mt week on week at $1,940/mt Friday. Looking
forward, some sources said that the Asian butadiene
market would rebound after discussions for November-
arrival cargoes begin. “South Korean end-users would
return to the market for November business,” said a
trading source. In plant news, South Korea’s Yeochun
Naphtha Cracking Center has further reduced the
operating rate at its 220,000 mt/year butadiene plant
in Yeosu to 80-85% of capacity since Wednesday due
to a mechanical problem at the unit. The company had
already reduced the run rate at the butadiene plant to
90-95% earlier this week, from 100% previously, due to
an annual one-month turnaround at its No. 3 naphtha-
fed steam cracker at the same site. The further reduction
in the run rate will last for about a week, and then the
company will revert to operating the butadiene plant at
90-95% of capacity till the steam cracker is restarted.
20
 PLATTS POLYMERSCAN
Polymer Feedstocks: Aromatics
Paraxylene
Europe
The European paraxylene 5-30 days forward benchmark
firmed $5/mt day on day to be assessed at $1,185/mt
FOB ARA Friday in tandem with rising prices in the US,
supportive economic indicators in Europe and a strong
dollar. PX in Europe registered a similar rise on a week-
on-week basis. In the US overnight, the product rose $5/
mt day on day to be assessed Wednesday at $1,195/mt
FOB US Gulf Coast on an uptick in demand from Latin
America and on anticipation of an improvement in demand
from downstream purified terephthalic acid manufacturers
within the country. In Asia, PX slipped $1/mt day on day
to $1,244/mt FOB Korea halting a three-day rally. This was
because a tank caught fire at the shutdown 600,000 mt/
year PTA plant in Ningbo, eastern China, owned by Japan’s
Mitsubishi Chemical. The EU market for new commercial
vehicles expanded for the 12th consecutive month in
August, with registrations rising 6.1.% year-on-year to
104,686 units, ACEA, the European auto manufacturers’
association, said Friday. This boosted sentiments for
downstream PTA markets in the continent and therefore
supported PX demand. Feedstock isomer-mixed xylene,
which slipped $10/mt week on week in Europe to $1,030/
mt FOB ARA, weighed in on PX prices.
United States
US spot paraxylene prices rose $20/mt on the week to
$1,195/mt FOB USG tracking Asia higher, sources said.
Asian PX pricing gained $27.50/mt on an FOB Korea basis
week on week to a Friday assessment at $1,244/mt FOB
Korea and $1,265/mt CFR Taiwan/China because of stronger
downstream demand, sources said. The US September PX
contract price settled at 64.50 cents/lb ($1,422/mt), sources
said Friday, a decline of 4 cents/lb compared with August’s
settlement. BP shut one of the two purified terephthalic
acid units at its 2.86 billion lbs/year Cooper River facility
in South Carolina following a fire in early August. Sources
have said the unit will likely be restarted in late October or
early November, but would not be at full run rates. Asian
demand for US PX was weak and arbitrage opportunities
were limited on paper, however, as much as 20,000 mt of
PX was shipped to Brazil, sources said. The MX-PX spread
was around $108/mt to end the week, based on Platts data.
Asia
Asian paraxylene slipped $1/mt day on day to $1,244/
mt FOB Korea and $1,265/mt CFR Taiwan/China Friday,
amid relatively stable discussion levels. This halted
the uptrend seen in the last three consecutive days, on
the back of improving PX demand from downstream
purified terephthalic acid market in China. Even so,
the Taiwan/China PX marker was up $27.50/mt week
Copyright © 2014, McGraw Hill Financial
october 1, 2014
Polymer Feedstocks – Aromatics
Weekly Average Spot*
Styrene FOB Korea ($/mt) 1484.40-1485.40
Styrene FOB ARA ($/mt) 1518.20-1519.20
Styrene FOB USG (cts/lb) 67.00-67.50
Paraxylene FOB Korea ($/mt) 1229.20-1230.20
Paraxylene FOB Rdam ($/mt) 1170.00-1172.00
Paraxylene FOB USG ($/mt) 1180.00-1190.00
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) 70.00-71.00
Paraxylene CFR Asia Average (Oct) NA
Paraxylene FD NWE (Eur/mt) (Sep) 985.00
Paraxylene FOB USG (¢/lb) (Sep) 64.50-64.50(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 $/mt, multiply by 22.046.
US Styrenics Prices
($/mt)
140
US Domestic Dlvd GPPS Styrene Spot USG
120
100
80
60
26-Feb 26-Mar 23-Apr 21-May 18-Jun 24-Sep
Notes: All aromatics prices reflect assessments at close of previous Friday.
on week. During the Platts Market on Close assessment
process, a bid for H2 October was heard at $1,272/mt
CFR Taiwan/Ningbo/Dalian for Asia-origin product,
while an offer for the same laycan was heard at $1,268/
mt CFR Taiwan for open-origin product. Meanwhile, a
bid for H2 October/November was heard at $12/mt CFR
Taiwan/Ningbo/Dalian, while an offer for H2 October/
H1 November was heard at $15/mt CFR Ningbo/
Dalian. Offers for November were heard at $1,270/mt
CFR Taiwan/Ningbo/Dalian for Asia-origin product.
In other market news, a tank caught fire at the shut
600,000 mt/year purified terephthalic acid plant in
Ningbo, eastern China, owned by Japan’s Mitsubishi
Chemical, a source said Friday. The plant in Zhejiang
province has been shut for a 35-day turnaround since
early September. It was expected to restart October 7.
The company said Friday that the restart schedule was
21
 PLATTS POLYMERSCAN
uncertain. Meanwhile, South Korea’s S-Oil nominated its
paraxylene Asian Contract Price for October at $1,280/
mt CFR, sources close to the negotiations said Friday.
This was down $30/mt from its final September ACP
nomination level of $1,310/mt CFR, which was revised
down from an initial $1,390/mt CFR. Meanwhile,
ExxonMobil also nominated its October PX ACP at
$1,280/mt CFR, down $20/mt from its final September
ACP nomination level of $1,300/mt. There are four PX
ACP sellers in Asia — ExxonMobil, Japan’s Idemitsu
Kosan and JX Nippon Oil and Energy, and South Korea’s
S-Oil. JX nominated its October PX ACP at $1,270/mt
CFR, sources close to the negotiations said Wednesday.
This was $40/mt lower than its final September ACP
nomination of $1,310/mt CFR. Idemitsu nominated
its October PX ACP at $1,280/mt CFR. For September
negotiations, no major settlement was reached. The
last agreed ACP settlement was for January at $1,415/
mt CFR. Asian isomer-grade mixed xylene was assessed
unchanged day on day at $1,044/mt FOB Korea and
$1,064/mt CFR Taiwan Friday amid thin trading. The
CFR Southeast marker was assessed up $15/mt week
on week at $1,065/mt Friday, amid tight availability
due to a plant shudown since May. Indonesia’s Trans
Pacific Petrochemical Indotama has kept its East Java
aromatics plant shut since May due to poor paraxylene
margins, market sources said Friday. The TPPI complex
has capacity to produce 1.065 million mt/year of light
naphtha, 1.624 million mt/year of reformate, diesel
and kerosene, 550,000 mt/year of PX, 350,000 mt/year
benzene and 100,000 mt/year of OX. There were no
bids or offers Friday, either onscreen or offscreen during
the Platts Market on Close assessment process. There
was talk that a deal was concluded at $1,050/mt FOB
Korea for an H2 October cargo, but this was denied by
the seller. The market was still focused on preparing for
2015 contracts and determining what were the price
drivers. A bearish toluene market was also impacting
iso-MX, with sources expecting it to continue until
next year. China’s demand for toluene has been waning
since the end of the first quarter of 2014, amid an array
of challenging market conditions including cheaper
alternatives such as mixed aromatics, limited availability
of credit and slowdown in the country’s GDP growth.
Styrene
Europe
Northwest European styrene monomer spot prices
dropped $10/mt to be assessed at $1,515/mt Friday,
as the European market remained oversupplied, and
feedstock benzene prices retreated south. Benzene moved
down $11.50/mt to be assessed at $1,328 CIF ARA. Week
on week, styrene and toluene moved in tandem —
styrene finished up $5/mt, benzene was up $7.50/mt on
the week Friday. Oversupply and a broad-based lack of
Copyright © 2014, McGraw Hill Financial
october 1, 2014
downstream demand held back prices in the ARA region,
according to sources. “We have an oversupply on styrene
so prices won’t jump,” said a source. “Everyone has too
much in their tanks. [For prices to move significantly]
we’d need to have an uptick in demand across EPS, PS
and ABS — but all those guys are long at the moment.”
Bid-offer indications in the market were heard in the
range of $1,500-1,525/mt FOB ARA for October-loading
barges. November-loading barges were heard in the range
of $1,510-1,515/mt FOB ARA until the afternoon when
offers disappeared. Globally the picture was similar as
styrene and benzene prices rebuffed increases from the
previous day. Asian styrene monomer fell $5/mt day on
day Friday to $1,509.50/mt CFR China, down $26.50/
mt on the week on reports China will accept slower
economic growth and not announce any substantial
stimulus package this year. Overnight Thursday, US Gulf
spot styrene was stable at 67.25 cents/lb ($1,482/mt) FOB
USG as feedstock benzene was steady.
United States
US spot styrene fell 1 cent on the week, assessed Friday
at 67 cents/lb FOB USG on lower benzene and ethylene
feedstocks prices. The assessment was at its lowest since
August 22, 2012, when it was at the same level, according
to Platts data. Bids were heard at 65 cents/lb FOB USG,
while notional offers were heard as low as 68 cents/lb FOB
USG. A source said the market was looking at October to
try to move product. Market participants were waiting on
the October US benzene contract price to settle, sources
said. The October benzene contract is expected to fall 44-55
cents from September to settle in a range from 415-425
cents/gal, sources said. If the decrease takes place, it could
drop variable costs as low as 63 cents/lb, according to Platts
data. The arbitrage to Europe and Asia was closed on paper,
according to Platts data Friday. To work product to Asia,
US prices would need to be closer to 64 cents/lb FOB USG,
sources said. The arbitrage to Europe appeared possible,
with the netback from Europe at just less than 67 cents/lb
FOB USG, with freight at $40/mt, according to Platts data,
but when factoring in profit, insurance and other items, US
product would likely need to be closer to 66 cents/lb FOB,
sources said. Styrene supply has been described as becoming
tighter in the market, as most producers have been running
reduced due to poor margins caused by the higher feedstock
ethylene prices, and as feedstock benzene had been higher
in July and August, sources said. In production, Westlake’s
Lake Charles, Louisiana, styrene plant was taken down in
mid-August and remained down this week, sources said.
Producer confirmation on the shutdown was unavailable.
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. Downstream demand in
polystyrene and the acrylonitrile-butadiene-styrene markets
were both steady, sources said. In feedstocks, spot benzene
was assessed at 423 cents/gal FOB USG Friday, while spot
22
 PLATTS POLYMERSCAN
ethylene was assessed 5.50 cents lower on the week at 70.75
cents/lb FD USG Friday. Variable costs were estimated as
low as 63.50 cents/lb using minimum feedstock costs and
as high as 74.25 cents/lb using maximum feedstock costs,
according to Platts data Friday.
Asia
Asian styrene monomer fell $26.50/mt week on week to
be assessed at $1,482.50/mt FOB Korea and $1,509.50/
mt CFR China Friday, and was down $5/mt day on day,
ahead of a week-long holiday in China starting next
Wednesday. Prices fell early in the week on reports China
will accept slower economic growth and not announce
any substantial stimulus package this year. However,
some support emerged later as the total inventory of SM
in eastern China was reported at 175,000-180,000 mt,
down from around 190,000 mt the week before. The
inventory held by traders was estimated to have fallen
to around 110,000 mt from 120,000 mt the week before.
In addition, producers keep limiting supply, with South
Korea’s SK Global Chemical not planning to restart its
350,000 mt/year SM plant at Ulsan in October as margins
Copyright © 2014, McGraw Hill Financial
october 1, 2014
remain squeezed, a source close to the company said late
Wednesday. It was unclear when the plant will restart,
with the source saying the company “will evaluate the
market day by day.” The plant was idled in late July due
to low margins and weak demand after running for only
three months. The bid-offer range for November loading
Asian-origin cargoes was heard around $1,500-1,510/
mt CFR China early Friday. October was bid at $1,512/
mt and December at $1,480/mt CFR China, with sources
saying market prices were down. However, domestic
prices in the east of China appeared to be stable from the
day before at Yuan 11,075/mt, or roughly $1,509/mt on
an import parity basis. In related news, China’s imports
of SM fell to the lowest level in 16 months at 260,691
mt in August as demand weakened, latest data released
Tuesday by Chinese customs showed. This was down 25%
from July and down 26.8% from a year earlier. The last
time imports were lower was in April 2013 at 238,333 mt.
Imports from major supplier South Korea tumbled 28.7%
month on month to 113,539 mt in August, likely as a
result of SK Global Chemical shutting one of its plants in
late July due to weak margins.
23
 PLATTS POLYMERSCAN
Polymer Feedstocks: Intermediates
Purified Terephthalic Acid
Europe
The European contract price for September was
assessed at Eur834/mt ($1,068/mt) FD NWE following
a September contract settlement for PX at Eur985/
mt ($1,261/mt) FOB ARA. PTA manufacturers who ran
their plant at an average and low operation rate of 70%
reported lower demand from PET manufacturers.
United States
Market sources said the formula-derived PTA price for
September was set at 56.47 cents/lb, a decrease of 2.68
cents/lb from August, market sources said this week.
The prices was set based on 64.5 cents/lb settlements
of the US paraxylene contract, the key variable used to
set the PTA price. A decrease was anticipated with spot
paraxylene prices falling throughout the month as the
US market felt the impact of weaker global demand.
Downstream, US polyethylene terephthalate prices
continued to be talked lower this week as lower-priced
feedstocks and product from other regions were pushing
domestic and import markets lower. September US PET
contracts were assessed at $1,687-$1,709/mt (76.5-77.5
cents/lb) as lower feedstock pricing and weaker global
demand was heard putting pressure on US markets.
Multiple sources pegged contracts in the 76-78 cents/
lb range for September. In production news, a market
source said the soon-to-be repaired line at BP’s Cooper
River, South Carolina, facility PTA facility would likely
run at about 50% capacity initially, and could be back at
full run rates in February. BP is set to restart the line —
which was damaged by a fire in early August — in late
October or early November, a source with knowledge
of company operations said. The Cooper River facility,
which has two units, has a total PTA capacity of 2.86
billion lb/year.
Asia
Asian purified terephthalic acid prices slipped slightly
by $4/mt week on week to be assessed at $896/mt
CFR China Friday. Sentiments remained bearish amid
a weak polyester market. PTA traded levels were seen
slightly lower at $896/mt CFR China Friday — but it
was a slight improvement from earlier in the week
when trades were seen done at $885/mt CFR China.
On Friday, deals were heard done at $890/mt and
$896/mt CFR China, for 1,000-mt Asian-origin cargoes
with 90-day Letters of Credit and loading in first-
half October. Domestic China PTA prices were stable,
assessed unchanged from last week, at Yuan 6,600/
mt, which is equivalent to $865/mt on an import
parity basis. January PTA futures on the Zhengzhou
Commodity Exchange traded marginally higher on
Copyright © 2014, McGraw Hill Financial
october 1, 2014
Polymer Feedstocks – Intermediates
Weekly Spot
PTA CFR China ($/mt)* 889.0-891.0
PTA CFR SE Asia ($/mt) 920.0-922.0
PTA CFR South Asia ($/mt) 930.0-932.0
EDC CFR FE Asia ($/mt) 431-433
EDC CFR SE Asia ($/mt) 431-433
EDC FOB NWE ($/mt) 370-380
EDC FOB USG ($/mt) 360-370
VCM CFR FE Asia ($/mt) 889-891
VCM CFR SE Asia ($/mt) 949-951
VCM FOB NWE ($/mt) 740-750
VCM FOB USG ($/mt) 700-710
Acrylonitrile CFR FE Asia ($/mt) 2009-2011**
Acrylonitrile CFR SE Asia ($/mt) 2004-2006**
Acrylonitrile CFR South Asia ($/mt) 1924-1926**
Acrylonitrile FOB USG ($/mt) 1915-1935**
Acrylonitrile CIF Mediterannean ($/mt) 1948-1952**
Monthly Contract Price
PTA FD NWE (Eur/mt) (Sep ) 829-839
PTA Delivered USG (¢/lb)(September) 56.47-56.47
VCM Delivered USG (¢/lb)(Sep ) 54.00-54.50
US domestic prices reflect transaction pricing for medium-sized customers.
* Average prices for week ending previous Friday.
** ACN prices reflect assessments at close of Tuesday
Platts Asian PTA versus Paraxylene ($/mt)
($/mt)
1600
PTA CFR China PX CFR Taiwan
1400
1200
1000
800
09-May 06-Jun 04-Jul 01-Aug 29-Aug 26-Sep
Notes: All intermediates prices reflect assessments at close of Thursday,
with the exception of PTA CFR China.
Friday, at Yuan 6,270/mt from the previous day’s
Yuan 6,236/mt. The CFR Southeast Asia PTA and CFR
India markers were also assessed down $4/mt week on
week at $921/mt and $931/mt, respectively, Friday. In
contract news, China’s Sinopec settled its September
Contract Price for PTA at Yuan 6,900/mt, down Yuan
775/mt from its August settlement, a market source
said Friday. Additionally, Yisheng Petrochemical
and Xianglu Petrochemical have also settled their
September CPs at Yuan 6,900/mt.
24
 PLATTS POLYMERSCAN
Acrylonitrile
Europe
European acrylonitrile prices were assessed at $1,950/mt
CIF Med, down $25/mt compared to last week’s level on
weaker spot buying interest as Ineos confirmed that it was
restarting one of its Cologne lines. It will begin the start-
up process at the 210,000 mt/year line over the weekend
after a five-week maintenance, a company source said
Tuesday. The source said the procedure was likely to end
by Sunday. “The maintenance ends at the end of the week
and operations start over the weekend. It should take a
couple of days (for the restart process to complete),” the
source said. The line is the larger of the two that it operates
at the site. The smaller 100,000 mt/year line has been in
operation throughout. The news comes as buying interest
is cooling, with consumers looking for lower prices as
availability was reported rising. NWE ACN spot prices hit
a 27-month high on August 30 to be assessed at $2,060/mt
CIF Med, according to Platts data. The price spike coincided
with the start of the Ineos turnaround. Producers however
are unwilling to cut prices, citing higher composite costs as
ammonia feedstock costs rose in the month of September,
while October propylene costs rolled over. “Ammonia is up
Eur65/mt [$82/mt] this month versus August. It means that
[composite] costs will be about Eur33/mt...for the nitrile,” a
producer said. Russia’s Lukoil is also due to start a four-week
scheduled maintenance at its 150,000 mt/year ACN plant in
Saratov, southern Russia, next week. Although some sources
said that buyers were willing to pay as little as $1,800/mt
CIF NWE, such levels could not be fully corroborated in
the market. Although producers said that with ammonia
prices having risen Eur65/mt and propylene a rollover, total
composite costs amounted to Eur32.50/mt, which meant
that with a total cost price of $1,926/mt CIF, it implied that
they could not sell below $2,000/mt without making a loss.
Although it disagreed with prices as low as $1,800/mt CIF
NWE, prices at $2,000/mt were currently not repeatable
in today’s market. A source said that material would
likely trade within the $1,900-1,950/mt CIF NWE level.
Additional freight costs implied a higher price for delivered
material into the Mediterranean hub.
United States
The US acrylonitrile export assessment was stable on the
week at $1,925/mt FOB USG as the market was heard in
a wide range. Spot pricing was talked from below $1,870/
mt FOB USG as offers were heard at that level, to as high
as $1,950-$1,980/mt FOB USG this week. Deals were heard
to be done as low as the high-$1,800s/mt FOB USG for
unknown volumes to as high as $1,970/mt FOB USG for
2,000 mt. Sources said many factors were playing a part in
the market as supply was expected to become tighter due
to an anticipation that most producers will reduce rates
further because of higher feedstock propylene prices, which
might help ACN prices rebound. However, a trader source
said ACN demand was slow, which could cause pricing to
Copyright © 2014, McGraw Hill Financial
october 1, 2014
fall further. The market was watching the propylene market,
waiting for an October contract settlement. Nominations
for the October chemical-grade propylene contract price
have been heard as low as 3 cents/lb and as high as 8 cents/
lb, sources said. The September chemical-grade propylene
contract settled at 71 cents/lb. Production costs based on
raw materials were estimated as high as $2,000/mt, but
those costs could rise in October to possibly as high as
$2,100-$2,200/mt depending on the increases seen in the
propylene contract, according to Platts data.
Asia
Asian acrylonitrile prices fell this week amid lower propylene
feedstock costs and competitive deepsea cargo offers. The
CFR Far East Asia marker was assessed down $25/mt week
on week at $2,010/mt. Offers were heard between $2,020/
mt and $2,050/mt CFR Far East Asia, with one producer
saying its sell target was between $2,000/mt and $2,050/mt.
Some deepsea cargoes were being offered at $1,950-2,000/
mt CFR Far East Asia, although they were expected to arrive
only end October or early November. Platts’ methodology
assesses cargoes delivered up to 30 days forward from date of
publication. One Chinese end-user estimated October arrival
cargoes at “about $2,010/mt or lower.” For cargoes arriving
in November, the same source said its buy indication was
below $1,950/mt CFR Far East Asia. A South Korean producer
said it had sold a cargo last week to an acrylamide producer
at $2,030/mt CFR Far East Asia, however the volume was
relatively small at 300 mt, and outside Platts’ methodology,
which assesses 1,000-2,000 mt cargoes on a CFR Far East Asia
basis. Feedstock propylene fell $10/mt week on week to be
assessed at $1,345/mt CFR China as supplies from propylene
dehydrogenation plants increased supply in the domestic
China market. The CFR South Asia ACN marker fell a sharp
$110/mt week on week to be assessed at $1,925/mt. Offers
for deepsea cargoes arriving late October or early November
were heard between $1,950/mt and $2,000/mt CFR South
Asia. Deals were heard done in the range of $1,920-1,925/
mt CFR India, with one deal heard concluded at $1,875/mt,
although it could not be verified. A South Asian producer
put the market price in the range of $1,900-1,930/mt CFR
South Asia. “We are seeing one of the worst prices for ACN
right now,” he added. Asian ACN prices were expected to
soften further amid weakening downstream demand, market
sources said. “From October to December we expect demand
to be lower from both acrylic fiber and ABS [acrylonitrile
butadiene styrene] producers,” a Chinese end-user said. “We
expect their operating rates to be lower [during that period].”
Ethylene Dichloride / Vinyl Chloride Monomer
Europe
EDC: The Northwest European EDC FOB spot price was
assessed flat this week, at $375/mt, amid no change in
market fundamentals. No trades were heard this week in
what was felt to be a market of continued low demand
25
 PLATTS POLYMERSCAN october 1, 2014

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

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

Global Production Update

Company Location Capacity* Timing Status

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

Copyright © 2014, McGraw Hill Financial 26

 PLATTS POLYMERSCAN
Asia, PVC prices slid $20-25/mt at Wednesday’s assessment
with a market source expecting demand to stay weak
until November when end-users reach the end of their
inventories. Asian VCM prices fell $8/mt week on week
to $890/mt CFR Far East Asia and $5/mt to $950/mt CFR
Southeast Asia due to weak demand.
Asia
EDC: Asian ethylene dichloride was assessed flat week
on week at $432/mt CFR Far East Asia and $432/
mt CFR Southeast Asia Thursday. US origin cargoes
for November arrival were heard offered to Far East
Asia below $450/mt CFR this week, against buying
ideas below $400/mt CFR. Spot availability was heard
from the Middle East, although no firm offers were
seen. Spot buyers were generally well covered by term
contracts amid shrinking production downstream.
Buyers said some spot demand was to likely to emerge
from November, although inventories remained high.
A Northeast Asian source expected EDC prices to
soften further in November and December as feedstock
ethylene plants resumed operations after scheduled
maintenance. VCM: Asian vinyl chloride monomer
prices fell $8/mt week on week to be assessed at $890/
mt CFR Far East Asia and fell $5/mt to $950/mt CFR
Southeast Asia Thursday on weak demand. Offers were
heard at $900-910/mt CFR Far East Asia against buying
ideas at $850/mt. Downstream October-loading PVC
cargoes were traded at $1,000-1,010/mt CFR China this
week, pushing down the price of domestically-produced
ethylene-based PVC in China. Caught between low-
priced imported PVC and cheaper carbide-based PVC,
Chinese ethylene-based PVC makers were not seeking
spot VCM this week, a market source said. In Southeast
Asia, selling ideas for delivered VCM cargoes were
heard at $960/mt CFR against buying indications below
$930/mt. Lower conclusions for October-loading PVC
prompted one market participant to say VCM prices
were on a slight downtrend, although supply remained
tight. Integrated producers were mulling lowering PVC
operating rates and selling off feedstock VCM for a
better netback, several market sources said.
News
Asian ABS premium to HIPS widens
fourfold on year in Jan-Sep on SM
Singapore — The premium of acrylonitrile-butadiene-
styrene to competing co-polymer high-impact
polystyrene has widened by more than fourfold so far
in 2014 compared with a year earlier on falling styrene
monomer prices, Platts data shows. The premium was
last assessed at $205/mt on September 24, with HIPS
up $5/mt to $1,705/mt CFR China and ABS stable
at $1,910/mt CFR China. The price gap between the
Copyright © 2014, McGraw Hill Financial
october 1, 2014
Subscriber notes (continued...)
AAKQK00 PVC average export price Japan Jpy/kg Monthly
AAKQL00 PS average export price Japan Jpy/kg Monthly
AAKQM00 ABS average export price Japan Jpy/kg Monthly
AASEN00 Toluene average export price Japan Jpy/kg Monthly
Please send any comments and questions to
PL_Asia_Petchem@platts.com and pricegroup@platts.com.
Platts to discontinue Japan domestic polymers assessments
from Sep 30 Following a detailed review of the market, Platts
will discontinue its Japan domestic polymers assessments
from September 30, 2014. These assessments are
published on page PCA055 and found under the following
codes in the Platts price database:
Symbol Description
AALES00 LDPE Platts Domestic Japan Jpy/kg Monthly
AALET00 LDPE MOF CIF Japan Jpy/kg Monthly
AALEU00 LLDPE Platts Domestic Japan Jpy/kg Monthly
AALEX00 LLDPE MOF CIF Japan Jpy/kg Monthly
AALEY00 HDPE Film Platts Domestic Japan Jpy/kg Monthly
AALEZ00 HDPE Film MOF CIF Japan Jpy/kg Monthly
AALFA00 PP Homo Platts Domestic Japan Jpy/kg Monthly
AALFB00 PP Homo MOF CIF Japan Jpy/kg Monthly
AALFC00 PP Copol Platts Domestic Japan Jpy/kg Monthly
AALFD00 PP Copol MOF CIF Japan Jpy/kg Monthly
AALFE00 GPPS Platts Domestic Japan Jpy/kg Monthly
AALFF00 GPPS MOF CIF Japan Jpy/kg Monthly
AALFG00 PVC Platts Domestic Japan Jpy/kg Monthly
AALFH00 PVC MOF CIF Japan Jpy/kg Monthly
AALFJ00 ABS Platts Domestic Japan Jpy/kg Monthly
AALFK00 ABS MOF CIF Japan Jpy/kg Monthly
Please send any comments and questions to
PL_Asia_Petchem@platts.com and pricegroup@platts.com.
two SM derivatives, which can have overlapping uses
especially in the electronics sector, was only $33.80/
mt in 2013, but that has widened to $143.70/mt for
the first nine months of this year. In 2013 the spread
even briefly flipped to a discount for ABS on a couple
of occasions, while in 2014 the premium has recently
hovered above $200/mt. Market sources in the Asian
ABS and polystyrene markets said the price spread
was crunched in 2013 due to the high SM prices at
the time. Since HIPS consists of more than 90% SM,
while ABS consists of roughly 60% SM, the high cost
of the feedstock had a larger impact on HIPS than
on ABS, which also contains acrylonitrile (25%) and
butadiene (15%). However, this year SM prices have
fallen, especially in the second half of the year due
to poor demand from end-users such as expandable
polystyrene, thereby reducing the feedstock cost for
HIPS producers. The widening premium for ABS could
result in lower demand as HIPS prices become more
competitive, market sources said, but they also added
that no big shift towards more use of HIPS had yet
been seen among end-users in Asia.
27
 PLATTS POLYMERSCAN october 1, 2014

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

POLYMERSCAN Volume 37 / Issue 39 / October 1, 2014

Editorial: Sydney +61-2-9255-9842. Singapore +65-6530-6584. Tokyo +81-3-4550-8837. London +44-20-7176-6264. New York +1-212-904-3070. Houston +1-713-658-3206.
Client services information: North America: 800-PLATTS8 (800-752-8878); direct: +1-212-904-3070 Europe & Middle East: +44-20-7176-6111 Asian Pacific: +65-6530-6430
Latin America: +54-11-4121-4810, E-mail: 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