09 March 2010
Sabic proposes rollover of MEG April ACP at $1,050
MEG major Sabic has proposed a rollover of its ACP from March to April at $1,050 per tonne CFR Asia. Two other MEG suppliers MEGlobal and Shell Chemicals have yet to post their April price. These two producers´ March number was $1,100 per tonne.

The spot market was meanwhile active, with prices recovering from $920 to around $945 per tonne CFR China by Tuesday. Demand remains stable in the key Chinese market, as downstream polyester producers maintained steady operating rates.

01 March 2010
Second March European Contract MEG Settlement
There was a second March settlement done today at €899 per tonne confirming this level. The agreement was reached between a PET producer based in Spain and its MEG supplier who has two EO plants in North West Europe.

23 February 2010
Samsung Petrochemical launches PTA licensing business
Samsung Petrochemical announced recently that Ibn Rushd of Saudi Arabia awarded the PTA de-bottlenecking project to SPC on 8th February 2010. The capacity will be expanded from 400,000 tonnes per year to 700,000 tonnes per year after completion in 2013. SPC will provide a process design and basic engineering package for the de-bottlenecking of the plant later this year and will also guarantee the performance of the entire plant.

23 February 2010
Nippon Oil nominate $1,090 for March PX ACP
February nomination was in the range of $1,180-1,190, which eventually yielded $1,055.

18 February 2010
February MEG WECP price settled at €840 per tonne: Initial settlement for March done at €899 per tonne
There was a dual deal done today with a linked February and March settlement. A three site EO producer agreed with the largest blender in Europe a dual contract price settlement with confirmation of February at €840 per tonne DDP with a March deal done at €899 per tonne DDP. The discussions for March were described as tough and difficult. Both values represent relative good value for contract buyers as spot markets in Europe remain tight, but users will struggle to move end use prices upwards.

17 February 2010
US MEG and DEG Price Increases for March Announced
US producers announced increases for March for MEG of 2-3 ¢/lb with benchmarks for March ranging from 53-56 ¢/lb FOB US Gulf. DEG increases of 6-9 ¢/lb were announced putting the DEG benchmarks at 55-58 ¢/lb FOB US Gulf. US December DEG exports were at an all time record high at 40 million pounds (18,100 tonnes) with 37 million pounds (16,800 tonnes) to China alone. The US DEG market has been noticeably tight and we now know why. US 2009 DEG exports totalled 197 million pounds (89,500 tonnes) which is by far the highest annual amount ever, exceeding 2008 exports by 61 million pounds (27,700 tonnes). TEG increases of 7-9 ¢/lb have also been announced with 3 benchmarks ranging from 82-86 ¢/lb FOB US Gulf.

08 February 2010
European Paraxylene Contract Agreement February 2010
We have now confirmed a major settlement of the European Paraxylene Contract Price for February at €800 per tonne between two major buyers and producers.

03 February 2010
February MEG WECP Settlement
There was a deal done today for February at €840 per tonne between a Spanish PET producer and a Benelux MEG producer with two EO plants. Spot levels in Europe show no signs of easing as no short term bulk parcels appear open until mid month earliest.

26 January 2010
Second MEG WECP deal done for January 2010
There was a second settlement done today at €785 per tonne DDP for MEG in Europe. This was between a global importer and producer and a large multi-site south European PET producer.

15 January 2010
First MEG Settlement done in Europe for January
There was a deal done today at €785 per tonne CFR between a large MEG blender and a large three EO site producer. MEG remains extremely tight as supplies from Europe were affected by ethylene issues and stronger demand due to seasonal factors. Coupled with the fact that the worry over probable serious supply issues from the Middle East with ensuing strong spot price movements in China are keeping traders very busy and we see spot prices escalating towards the two nominations so far of $1,020/$1,040 per tonne CFR.

14 January 2010
February MEG Asia Contract price nominations open at $1,020 to $1,040/tonne CFR
Shell has announced $1,040/tonne for their February MEG Asia CP price. This is an increase of $120 over January. Sabic also announced its Asia Contract Price for February at $1,020 which is $95 higher than January 2010: MEGlobal has yet to announce its February contract price.

Spot prices in Asia continue to rise on the back of MEG supply shortage and stable demand. Traders bought as high as $1,010 to $1,020 CFR China, with some end users forced to buy prompt cargoes at $995-1,005/tonne CFR. Supplies remain tight due to unplanned outages from various international sources.

US EO and MEG production has incurred losses due to extended sub freezing temperatures over the past 5 days as US Gulf petrochemical plants are not designed to deal with those conditions. US spot ethylene values surpass 44 ¢/lb now exceeding the December contract settlement of 43 ¢/lb: January contract values are expected to settle much higher.

Spot MEG values in West Europe continue to rise as product remains tight and what spot availability there is being snapped up due to higher demand: Cold winter weather is contributing to increased demand as blenders gear up for more production: Contract negotiations are under way as buyers brace themselves for a significant increase.

11 January 2010
Paraxylene and MEG prices set for substantial rises in January as cold spell hits Europe and paraxylene suppliers reportedly running at high rates
Spot prices for MEG in China moved briefly over $1,000 per tonne before falling back to $970-980 per tonne, still above January ACP levels. The main factor here was reported production issues in Saudi Arabia. This encouraged traders to examine possible arbitrages with other regions, encouraging an initial move on spot MEG prices in Europe. Then the cold weather in Europe put life back into the antifreeze markets as buyers come back to top up volumes. Production outages and problems on crackers have helped tighten the EO balances and reduced feed to MEG units, reducing supply as demand increased. As a result spot MEG prices in Europe have moved up sharply in contrast to 15 days ago. Speculative spot bulk MEG, what little there is, is talked about over €700 per tonne FOB with truck prices now achieving in excess of this level, moving up rapidly. As a consequence we may see an impact of spot levels on January contract price negotiations for MEG with levels around 6-11% above earlier expectations.

In addition to the issues in the MEG market, we have heard of an initial paraxylene settlement of €800 per tonne for January. As yet this remains unconfirmed but the indications are that the current tightness in paraxylene markets in Europe has the potential to see Europe settle at a premium to Asia, which settled at $1,090 per tonne.

08 January 2010
EU Initiates Anti-subsidy Proceedings on Thailand Origin PTA
The Official Journal of the European Union dated 22 December 2009 posted the “Notice of initiation of an anti-subsidy proceeding concerning imports of PTA originating in Thailand”.

The European Commission has received a complaint alleging that imports of PTA originating in Thailand are being subsidised and are thereby causing material injury to the Community industry.

The complaint was lodged on 13 November 2009 by BP Aromatics Limited NV and CEPSA Quimica S.A.

It is alleged that the producers of the product under investigation originating in Thailand have benefited from a number of subsidies granted by the Government of Thailand. The subsidies consist of schemes conferring benefits to industries located in specific industrial areas being subject to privileges granted by the Thailand´s Board of Investment to projects within the Investment Promotion Zone 3. These benefits include an exemption from import duty on machinery, an exemption from or reduction of corporate income tax, double deduction from taxable income of transportation, electricity and water costs, and an exemption from import duty on raw materials used in the manufacturing for export.

The investigation will be concluded within 13 months of the date of the publication of the notice in the Official Journal of the European Union (i.e. January 2011). Provisional measures may be imposed no later than 9 months from the publication of this notice, i.e. September 2010.

18 December 2009
Sabic nominate January 2010 ACP MEG price at $925
Sabic has nominated its January contract price nomination at $925 per tonne CFR Asia, this is an increase of $65 on the December nomination. Meanwhile spot prices in China remain firm at the level of $860-870 per tonne CFR.

16 December 2009
Shell opens 2010 MEG monthly nominations at $920 per tonne CFR
Shell Chemicals is reported to have nominated a January ACP MEG level of $920 per tonne CFR. This is higher than the previous month´s level of $840 per tonne CFR. Spot prices in China are currently around $855-860 per tonne CFR after a rapid fall from the peak of $905 per tonne CFR earlier last week due to a worsening perception of downstream activity.

16 December 2009
Second ACP nomination for January 2010 set at $940/tonne
MEGlobal announced their January nomination for MEG at $940/tonne: the text of the announcement can be found below.

“Please note that the MEGlobal Asian Contract Price (ACP) for MEG will be $940/tonne CFR Asian main ports for arrival January 2010. The January 2010 MEGlobal ACP reflects the short-term supply/demand situation in the Asian market.

09 December 2009
First December MEG WECP done at €660 per tonne DDP
A deal was done today at €660 per tonne DDP between a very large MEG coolant buyer and a triple EO site MEG producer for the December European contract price. Spot prices in Asia moved up yesterday well past December ACP levels of $840-860 to $900 per tonne CFR.

In the US, the ethylene contract price remains unsettled for November and is expected to settle as a two month agreement for November and December at the end of December. PCI will then set its US EO contract prices accordingly.

30 November 2009
China PTA Antidumping Progress
Major polyester producers in China have made representations to the Ministry of Commerce in Beijing earlier this week opposing the imposition of anti-dumping duty on Korean and Thai PTA. The polyester makers strongly argued that any anti-dumping actions would hurt China´s polyester and textile industry ultimately, as the country is still very dependent on imported raw materials for polyester production.

The Commerce ministry met privately-owned PTA producer Yisheng Petrochemical who is leading the imposition of anti-dumping measures prior to the meeting with polyester industry. On 5 December, the Ministry is expected to meet all PTA producers in China to discuss the next step of action.

30 November 2009
KP Announce $100 increase for December PIA
KP Chemical announced on 26 November that the supply price of PIA will be increased by $100 per tonne for December due to the cost pressure of mixed xylene. The company also plans to reduce utilisation of its 200,000 tonne per year capacity from current 70% to 60% if the situation does not improve.

30 November 2009
Initial December Asian PX Contract Settlements Agreed
The PX Asian contract price has been settled at $1,060/tonne CFR Asia for December by a number of buyers and sellers. This is $100/tonne higher than the previous month´s final price of $960/tonne.

As of 1630 hours Beijing time, major buyers in Japan and Taiwan had agreed to the December price with PX majors Nippon Oil and Idemitsu Kosan.

A significant price increase had been anticipated as a result of ongoing tightness in the PX market, resultant from reduced availability of PX and robust demand for PTA into China´s polyester consumers. Low inventories and a number of production outages in Asian PX and PTA sectors combined to push spot prices towards $1,100/tonne, although some weakening in both PTA and PX spot prices is now being seen, possibly heralding the end of the bull run as buyers anticipate a year end slowdown and potentially increased product availability.

19 November 2009
Nippon Oil Proposes $160/tonne Increase for December PX ACP
Japanese aromatics major Nippon Oil has nominated its December Asian contract price at $1,120/tonne CFR Asia, up $160/tonne from the previous month. The November settlement was $960/tonne.

Other PX suppliers ExxonMobil and Idemitsu Kosan are expected to post their December nomination very soon.

Against a background of rising crude oil prices, strengthening naphtha and a relatively strong PTA market, it is anticipated that PX producers will seek increases to recover lost margin in the belief that PTA markets are robust enough to absorb higher costs or to pass them through to downstream polyester producers.

Increased PX supply is expected in January as Kuwait Aromatics and Aromatics Oman are expected to start up each of their respective 820,000 tonnes/year plants by early December, which may prompt a firm stance from suppliers at the end of 2009 while balances remain relatively strong.

18 November 2009
Chongqing Pengwei PTA Plant
Chongqing Pengwei claims to have started up its 700,000 tonne PTA plant in China and reportedly achieved on-spec production last Friday. The potential customers admitted that sales staff from the new PTA producer have been contacting them to offer supplies, but nothing had surfaced thus far.

Sources from Chongqing Pengwei said the company, based in Sichuan in the southwest of the country, is now focused on building up inventories and would soon offer cargoes to customers to all parts of China.

17 November 2009
Sabic announces December ACP at $860, as first November WECP nomination is posted at €632 per tonne
Sabic has announced its Asian contract price for December shipments at $860 per tonne CFR Asia, up $80 per tonne from the previous month. The Saudi major´s December nomination is on par with that of MEGlobal, and higher than Shell Chemical´s $840 per tonne.

Meanwhile, spot prices in Asia rebounded from last Friday´s lull, with traders taking long positions as high as $775-780 per tonne CFR China. Downstream market conditions were stable, although polyester sales have slowed to well below 100% of daily output, average around 50-60%. However, because of continued demand from the buoyant textile and apparel segments, traders believe that MEG demand still outstrips supply in the next few weeks.

In the US all major producers announced a 3 ¢/lb increase for MEG effective 1 December 2009 with the MEGlobal benchmark rising to 40 ¢ from 37 ¢.

In West Europe there was a first agreement for the November WECP at €632 per tonne, down €8 on October, between an Italian based PET producer and a Netherlands based EO/MEG producer. We wait to see if this is followed by other buyers and sellers.

06 November 2009
US contract ethylene settles up 2.75 ¢/lb for October
The October contract ethylene price settled up 2.75 ¢/lb putting the PCI October range at 35.75-38.25 ¢/lb for an average of 37 ¢/lb.

The PCI US EO contract range for October will be 42.8-50 ¢/lb and the market average FOB price is 44.5 ¢/lb.

Asia spot MEG prices are rebounding once again to near $760 approaching the $770 year high level of August as demand remains robust, costs higher following rising oil and some voluntary and involuntary cutbacks in Asia. Sinopec Shanghai Petrochemical closed one EOMEG plant as the cost of purchased ethylene pushes MEG margins into negative areas. Shell plans to start their new 750,000 tonne Singapore MEG plant soon on purchased ethylene which is adding strength to the Asia contract ethylene values. Asia DEG has also climbed beyond $700 per tonne this week.

30 October 2009
First October WECP settlement for MEG
A settlement was done today between an Asian based PET producer and a Netherlands based EO/MEG producer at €640 per tonne DDP for October deliveries. We await further developments on this European price for MEG, as Chinese spot prices remain around $720-725 per tonne, after stalling due to falls in PTA and paraxylene prices locally.

30 October 2009
Partial ACP PX Settlement for November at $960/tonne
A Japanese PX end-user and one of its Japanese suppliers have agreed to settle the November Asian contract price at $960/tonne CFR Asia, up $120/tonne from the previous month´s settlement of $840/tonne. Other players had yet to agree to the price as of 0830 hours GMT.

30 October 2009
Second October 2009 MEG Settlement
There was a second MEG settlement today at €640 per tonne between a Spanish PET producer and a German owned Benelux MEG producer. This would seemingly set the WECP for October; work is now starting on negotiating the November WECP for MEG. In China MEG spot prices have stalled and slipped back a little as buyers and sellers adopt a wait and see position as paraxylene and PTA settle out.

22 October 2009
PX ACP for Nov nominated at $1,000-1,030
The Asian contract price (ACP) for PX delivered in November has been nominated sharply higher than the partial October settlement of $840/tonne CFR Asia. ExxonMobil and Idemitsu Kosan respectively proposed $1,030 and $1,000, while Nippon Oil had proposed $1,020 earlier.

05 October 2009
October Paraxylene ACP settlement
The October paraxylene ACP has seen major settlements at $840 per tonne CFR Asia, $200 per tonne lower than September. Japanese sellers yet to agree.

29 September 2009
KP Chemical completes PPTA acquisition
Pakistan?s local media reported on 26th September, that KP Chemical Corporation, a subsidiary of South Korean conglomerate LOTTE, has completed its acquisition of majority shareholding in Pakistan PTA Ltd (PPTA) recently, making it an official member of the LOTTE Group. Excerpts;

This acquisition represents a significant step for PPTA to benefit from KP Chemical´s strategy of seeking new markets and accelerating growth in one of its core businesses. PPTA is the single largest foreign direct investment (approximately $500 million) in Pakistan´s petrochemical industry. Nak Yong Lee, Chairman of PPTA, at a press conference in Karachi on 25th September expressed goodwill on this new affiliation and said, "We see very impressive passion and expertise in our Pakistani colleagues and it´s a great source of pride for KP Chemical to have new members of such quality by this transaction. In consideration of such potential, and KP Chemical´s desire to transform from a leading Korean entity to a globally reputed one, this merger would be a meaningful stride for KP Chemical."

PPTA operates 480,000 tonne per year PTA plant in Port Quasim.

14 September 2009
MEG European Settlement for September
There was a settlement today at ?670 per tonne representing an increase of ?55 from the August level of ?615 per tonne. The deal was done between a large MEG producer with an EO plant in Germany and another EO/MEG plant in Belgium and a Spanish PET producer.

14 September 2009
Second MEG European Settlement for September??
A second deal was done confirming the ?670 MEG level for September between the largest none integrated European blender and a tri-site producer of EO with two MEG sites.

28 August 2009
PBOC reaffirms 17% money supply growth target for 2009
The People´s Bank of China (PBOC), the central bank, published its Annual Report 2008 on Aug 25, emphasizing the stability of the moderate increase in monetary credit and reaffirming the growth target of total annual money supply, making M2 growth stand at 17%.

The annual report also pointed out that there will always be conflict between currency and prices, but in general the overall level of prices will gradually stabilize in the second half and the risk of another sharp economic decline in the short-term has reduced markedly.

The annual report said that the central bank needs to make sure that the monetary credit can increase moderately and steadily by considering macro-control policy and flexibly utilizing various monetary policies and instruments.

Financial institutions should resist focusing too much on short-term profits and affecting long-term stable and healthy operation. They should also continue to actively issue loans in a balanced and reasonable manner.

From the above statements, PCI interprets that fluidity in the second half may be gradually tightened by adjustments needed to reach the 17% growth target, given the current growth of M2, which is already as high as 28%.

19 August 2009
Sabic post a $90 increase for September MEG ACP
Sabic confirm having posted an increase of $90 per tonne for the September MEG ACP nomination. Spot prices yesterday were stable to a little firmer, above the August ACP levels, despite falls in both crude oil and stock market values.

17 August 2009
Shell reportedly announce its September ACP
Shell are reported to have announced an increase of $80 per tonne for its September ACP over August ACP, to the level of $820 per tonne CFR.

10 August 2009
Chongqing Pengwei PTA Start Up
According to industry sources new PTA projects in China are progressing at a faster pace with the help of ?petrochemical stimulus package?. The start up of Chongqing East Hope PTA plant (700,000 tonnes/year) is claimed to be within August although the beneficial production is projected in November to sort out minor mechanical problems. The original start up date was January 2009.

Jialong PTA (640,000 tonnes/year) in Fujian may bring forward the start up date the end of 2009, which slipped to Q1 2010 due to equipment delivery complications.

03 August 2009
PX ACP Fully Settled for July & August
It appears PX ACP for July and August has been fully settled between the buyers and the sellers at $960 and $1,040 CFR respectively.

The $80/tonne increase for August contract deliveries has been supported by strong demand for PX from the PTA sector in China which continues to enjoy robust trading conditions despite some concerns about increasing levels of PTA, MEG, fibre and fabric inventories at the end-user/trader interface.

China´s domestic stimulus package and increased access to credit from the domestic banking sector may continue to fuel this rally for some time to come, but sooner or later the fundamentals of increasing supply over demand will come into play, with a corresponding easing in local balances.

24 July 2009
China DEG Imports Go Ballistic
Chinese trade import data for June reveal sky high import volume of 68,900 tonnes, by far a record for volume. The import volume year to date is an unbelievable 78,000 tonnes ahead of 2008 or almost 35%. Clearly a major demand change has prompted this activity and we believe the continued rapid rate of construction is behind some of it. In any case, at this rate, DEG supplies will be totally consumed around the world even with major declines in the US and Europe on DEG demands.

21 July 2009
Sabic announce August MEG ACP
Sabic announced an increase of $70 to $740 per tonne CFR for deliveries of MEG to contract customers in August. This is the same level as the announced August MEGlobal and Shell levels.

14 July 2009
Sun announces closure of their ethylene EO plant
Sun Chemical has announced the permanent closure of its ethylene and EO plant in Claymont Delaware after a fire in May damaged the ethylene unit. The net loss of EO production is estimated at 25,000 tonnes (55 million pounds).

03 July 2009
US June Contract Ethylene settles up 3 ?/lb
Buyers report that the June US contract ethylene price settled up 3 ?/lb over May. That will put the PCI contract ethylene price at 32-34.5 ?/lb delivered for an average of 33.25 ?/lb delivered. The PCI EO contract range for June will be 39.8-46 ?/lb FOB and the EO market average will be 40.9 ?/lb FOB.

02 July 2009
European PX Contract Agreement July 2009
We have now confirmed that the initial settlement for July 2009 was made between ExxonMobil and Cepsa (Interquisa) at ?728 per tonne. At present some parties are still negotiating, whereas others have stated they will not dispute this number.

02 July 2009
First July Price Done on WECP MEG ?
A joint deal was done today between an Italian PET producer and a German owned Belgian MEG producer. The deal was confirmation of June at ?520 and July at ?575 per tonne.

02 July 2009
More WECP Settlements
There has been another dual settlement for MEG at Euro520/tonne for June and Euro575/tonne for July. This deal was done between a large MEG buyer for Anti-freeze and a MEG producer with 3 EO plants. In our opinion, this confirms the contract prices for June and July for MEG in Europe.

01 July 2009
Europe July PX Contract ? Initial Settlement
We understand that an initial Europe PX contract settlement was made yesterday between ExxonMobil and two major PTA manufacturers BP and Interquisa at ?728. This is a decrease of ?67 from June contract level of ?795. This sharp decrease brings European PX pricing more into line with Asian contract price development.

30 June 2009
Asian Paraxylene Contract Settlements Reported at $990/tonne and $960/tonne for June and July 2009
According to unconfirmed reports there have been ACP PX settlements made between a major PX supplier and two major Japanese PTA producers at the level of $990/tonne for June and $960/tonne for July. We are awaiting final confirmation of these numbers.

There is no news about whether the $1,010/tonne settlement made earlier in June by one Taiwanese consumer will be amended to follow the latest numbers.

22 June 2009
Sabic Announces $670 for their July Asia MEG CP
Sabic posted a $20 per tonne increase over June to $670 per tonne CFR for their July Asia MEG CP. Spot prices are now at $590-600 as Asia ethylene prices at $900 per tonne put MEG cash costs well above $600 per tonne. Shell posted a rollover at $620 while MEGlobal increased their June level of $630 to $680 for July.

17 June 2009
Two July ACP Nominations for MEG
There have been two July nominations for MEG so far. The Shell nomination reportedly rolled over at the level of $620 per tonne CFR from June to July. The MEGlobal nomination for July was $680 per tonne CFR, up from the June level of $630 per tonne CFR. The text of the announcement can be found in the following section:

?Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be $680 USD/MT CFR Asian main ports for arrival July 2009. The July 2009 MEGlobal ACP reflects the short term supply/demand situation in the Asian market."

Several US producers have announced 3-5 ? increases for MEG for 1 July and 2-5 ? for DEG. US ethane prices have jumped nearly 20 ? per gallon in the past two months pushing up ethylene costs by nearly 9-10 ?/lb. As MEG and DEG margins are near zero, any cost push now will result in price increases in order to keep margins close to zero.

01 June 2009
Paraxylene Contract Settlements for June 2009 - Asia and Europe
At the end of Friday there were a number of developments in the June paraxylene contract market.

In Asia, there was an initial settlement at $1,010 per tonne CFR Asia, between a major Japanese supplier and a Taiwanese end-user. This represents a $10 per tonne increase over May´s contract agreement.

In Europe a major European supplier agreed a rollover of ?795 per tonne with two major PTA producers. The USD: Euro exchange rate as of Friday 29th May was close to 1.41, making the Euro 6.8% stronger than at the end of April when the rate was approximately 1.32 USD: Euro.

In simple terms, the European settlement adds $60 per tonne gross equivalent to the List Contract price at the current exchange rate.

29 May 2009
Petroqu?micaSuape receives the first major equipment for its PTA plant
The Petrochemical Company of Pernambuco (Petroqu?micaSuape) received on May 22nd, 2009, the first large size equipments for its purified terephthalic acid (PTA) plant under construction in Suape industrial complex, located in the state of Pernambuco, Brazil. The cargo was loaded in three Japanese ports (Yokohama, Kobe and Kudamatsu), early in April, and represent some of the key components for the operation of the petrochemical plant.

The equipment represents US$32.2 million in investment and totalize a weight of 1,255 ton, which includes an oxidation reactor (298 ton), PTA dryer (183 ton), CTA dryer (163 ton), among other items and accessories. These first equipments represent the ?heart? of the petrochemical plant and were ordered between August and December of 2007 and delivered by Japanese suppliers in March 2009. Petroqu?micaSuape is part of the portfolio of strategic projects of Petrobras and is included in the PAC - Program of Acceleration of Growth of the Brazilian Federal Government.

29 May 2009
Petroqu?micaSuape contract technology and equipment for 450,000 ton/year PET plant in Brazil
On last Friday (May 22nd), the ?Petrochemical Company of Pernambuco? (Petroqu?micaSuape) signed with ?Lurgi? (former Lurgi Zimmer) the contract to ensure the supply of technology and equipment for installation of a PET resin plant in the state of Pernambuco, Brazil.

The PET resin plant is being installed with capacity of 450,000 ton of resin per year applying technology from Lurgi for the CP (continuous polymerization), and the technology for SSP (solid state polymerization) sub-contracted from the Swiss based B?hler AG. Lurgi, based in Frankfurt, Germany, is recognized worldwide for its innovation capacity in processes towards the production of polymers. Its experience of over 50 years with technology for PET packaging represents reliability, operational savings and superior quality products.

With the execution of this contract, Petroqu?micaSuape has completed all the necessary actions to ensure the integration and construction of the three industrial units: PTA, PET resins, polymers and polyester yarns.

When put into operation, the integrated project will supply products with high quality and competitive prices for the Brazilian and South American market, as well as improving the Brazilian trade balance with as much as US$ 1 billion per year, mainly through substitution of imports.

The construction of the integrated complex is moving on in accelerated pace, with key equipment for PTA already received and assembly work taking place. Petroqu?micaSuape will be starting operation in November 2010.

29 May 2009
KP makes announcement to acquire Pakistan PTA
On 21st May 2009, KP Chemical of Korea made public announcement of intention to acquire 14.99% shares of Pakistan PTA (PPTA) as required under Pakistan regulations. PPTA operates 480,000 tonne per year PTA unit at Port Qasim. Akzo Nobel is the holding company of PPTA.

22 May 2009
Asian MEG Contract Prices Posted
The June Asian MEG contract prices have now been all been posted, with Sabic rolling over from last month at $650 per tonne CFR, MEGlobal moving to $630, and Shell to $620 per tonne. Spot demand remains quiet as Asian and Chinese spot prices slip towards the $510-525 per tonne levels.

05 May 2009
Canton Fair gets domestic as export drop 21%
The Canton Fair, China´s largest trade exhibition, is paying attention to the domestic market, as external demand shrinks and the country´s exports fall. Viewed as a barometer of China?s trade, the fair is being held in 3 phases during April15 and May 7.

Phase 1: April 15-19: Electronics, tools, machinery, vehicles, building materials, chemicals. Order volume dropped 21%.

Phase 2: April 24-28: Consumer goods, gifts, home decorations. Estimated order decline by 20-25%.

Phase 3: May 3-7: Textiles, garments, shoes, office supplies. Many Chinese exporters are trying to tap into domestic market but finding it tough due to cut-throat competition, lack of local brand names and poor domestic distribution networks, despite a track record in manufacturing products to global standards for leading brands. As they have already missed the summer season, the demand for winter season will judge the fate of many textile companies. A rough estimate of order volume will be available before the start of APIC.

30 April 2009
EQUATE Resumes Normal Operations
Equate sent out the press release below today:

"EQUATE Resumes Normal Operations

Kuwait, April 29, 2009 -- EQUATE Petrochemical Company said on Wednesday that its operations are back to normal as feedstock supplies have been restored to their previous levels ".

30 April 2009
European PX Settlement for May
There has been an initial PX settlement in Europe for May contract deliveries at ?795 per tonne, an increase of ?90 over April´s agreed contract value. Further confirmation from other participants in the process has yet to be obtained, but the price level appears to track the upward progress of Asian PX pricing and keeps European markets in line with Asian developments.

29 April 2009
Nippon Oil May ACP Settlement
Nippon Oil settled May ACP with two Taiwanese end users at $1,000 CFR

24 April 2009
Sabic announce a $110 increase in the May MEG ACP
In a clear contrast to the other major price posters of ACP MEG for May, Sabic is reported to have posted a large price increase for the May contract price. Their posting is at $650 per tonne CFR a $110 increase on April, compared to smaller increases from Shell and MEGlobal whose May ACP numbers were $580 and $600 per tonne respectively. Spot levels in China are around $580-590 per tonne CFR.

22 April 2009
Second European MEG Settlement for April
There has been a second settlement for April at ?502 per tonne. This settlement was reached between a large Netherlands based EO/MEG producer and a PET producer with production assets in the UK, Lithuania and the Netherlands. This would seem to confirm the April level at ?502 per tonne.

17 April 2009
Asian MEG Contract Price Announcements for May
Shell we are told announced their ACP for May at the level of $580 per tonne for May. Today MEGlobal announced their nomination for May at the level of $600 per tonne CFR. The text is attached below:

?Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be $600 USD/MT CFR Asian main ports for arrival May 2009. The May 2009 MEGlobal ACP reflects the short term supply/demand situation in the Asian market.?

In the meantime the market is uncertain in its direction as despite high port stocks for MEG in China the fear of rumoured plant outages in the Middle East is worrying buyers. Gulf producers, apart from the documented issues at Equate, talk of normal operations at this time with only planned outages on one plant in April and another planned outage in May. Further complications are caused by uncertainty for buyers over the Rabbigh start up and news of more delay on Yansab?s start up too.

09 April 2009
Middle Eastern Production Cutback in Kuwait
After 48 hours of rumours in the markets in Asia, there has been confirmation of production problems with the Kuwaiti plants. A copy of their press release is included below:

"EQUATE reduces production rates

Date: April 8, 2009

EQUATE Petrochemical Company said on Wednesday that it is experiencing a feedstock shortage due to the recent incident at Kuwait National Petroleum Company (KNPC).

As a result, EQUATE had to reduce its production rates. EQUATE expects to go back to its normal operations shortly."

09 April 2009
New MEG Settlements in Europe March and April
There was a two month settlement agreed today between a multi regional Italian PET producer and a large German based two EO site MEG producer. The settlement was for a March price at ?495, and an April price at ?502 per tonne. This settlement seemingly confirms the March level at ?495 per tonne and we await more developments for April.

In the mean time, MEG spot prices to China have slipped some more in sentiment, though no deals concluded, which is strange after the data yesterday on the Equate issues. Perhaps the news that SumitomoAramco managed to make on specification ethylene today, which is the first step to the new MEG plant starting up, has made its mark?

08 April 2009
China raise tax rebate to boost export ?
China unveiled tax policy changes to boost its exports. The government raised export rebates for textiles, steel, petrochemicals and electronics starting April 1, the Ministry of Finance said in a notice posted on its website. Rebates will also be increased for non-ferrous metals, light industrial products and information-technology products. Export tax rebate will be increased to 16% for textile and garment exports, the fourth rebate hike for the sector since last August.

Below are the revised rebates for some of the products:
PX 13%, PTA 13%, MEG 13%, PET 13%, Filament 16%, Staple 16%, All Textiles and Apparel 16%

31 March 2009
Initial ACP Paraxylene Settlement for April at $880 per tonne
There have been a series of settlements of paraxylene ACP at $880 per tonne by both Idemitsu and Nippon Oil with several of their major customers. This is a rise of $50 per tonne over the March ACP of $830 per tonne and reflects the current strong paraxylene market which is seeing spot prices in the range of $950-980 CFR China/Taiwan.

PTA bids are currently being seen at $770 CFR China with no offers being made.

23 March 2009
PTA spot price in Asia has spiked to $765 CFR
PTA spot price in Asia has spiked to $765 CFR. However in PCI´s opinion it is not driven by end-user demand but rather as the result of the following factors:

- PX supply is still restricted in Asia and spot prices have again rebounded to over $900 per tonne CFR.

- Yizheng, FCFC Ningbo, MCC Ningbo experienced simultaneous mechanical troubles for 3-4 days during the week of March 16th.

- Demand from the polyester sector is fundamentally unchanged.

- Prospects of a sharp economic rebound are probably inaccurate. Such speculation was triggered by the Fed?s unexpected announcement on March 18th that it will buy as much as $300 billion of US Treasury Bonds and increase purchases of agency mortgage-backed securities, to lower consumer borrowing costs. Based on this measure, end-users and traders in China are projecting a further depreciation in the value of the US dollar, which will make PTA and MEG import prices more expensive.

- Speculators are utilising this opportunity to create a herd mentality, but the continued strength of price is being questioned in the local market and the ability of the downstream consumer to absorb of pass on such rises against a background of weak consumer demand is questionable.

PCI is forecasting stronger prices in the near term, but with caution that such rapid price increases are generally unsustainable unless fundamental demand improves or economic and physical restrictions in feedstock supply continue for a considerable period of time.

20 March 2009
Sabic nominate April MEG price
Sabic nominated $540 per tonne CFR (cost and freight) Asia for April?s contract price. The March MEG price was nominated at $600 per tonne CFR Asia.

16 March 2009
Two Asian MEG April contracts announced down on March
Shell reportedly announced earlier last week an ACP for April of $560 down by $50/tonne on March. On 15 March MEGlobal also announced a reduced contract price for April of $540/tonne CFR down from $630 for March. A copy of the announcement can be found below:

?Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be $540 USD/MT CFR Asian main ports for arrival April 2009. The April 2009 MEGlobal ACP reflects the short term supply/demand situation in the Asian market.?

In the mean time in Europe, the stalemate over the March WECP remains with one settlement between one buyer and seller at ?495, and another between one seller and two buyers at ?530/tonne.

Spot prices in Asia have been trading in narrow range for a week or two around $435-440/tonne CFR. The Sumitomo Rabigh 600,000 tonne MEG plant is still in start-up phase and should see export volumes commencing in April. The Sabic Yansab 800,000 tonne MEG plant had a trial start-up but full operation must wait for the ethylene cracker to be completed in early Q2 2009. Shell announced intentions to start their 750,000 tonne plant in Singapore in late Q4 2009 while Sharq 4 800,000 tonne MEG plant is due in Q3 2009. The Liaoning Huajin 200,000 tonne MEG plant in China is due at the same time as the Sabic Sinopec JV 420,000 tonne plant in Tianjin China in late Q4 2009. The total new capacity for these six plants is 3.57 million tonnes. PCI now sees global MEG demand growth in 2008 as ZERO and our latest projection for 2009 is 230,000 tonnes. The global recession so far has taken out nearly 2 million tonnes of demand from our mid 2008 forecast versus today for the 2008 and 2009 years. A rebound is expected for 2010 but a prolonged global recession in 2010 can add to the 2 million tonne demand loss.

Spot ethylene prices in the US have dropped sharply on the past week down to 23 cents/lb as plants restart and natural gas and ethane prices remain very low compared to equivalent oil btu values.

12 March 2009
Second WECP settlement for March
There was a settlement done today at Euro495 per tonne between a multi-regional polyester and PET producer and a Netherlands based multi-national MEG producer. This significant difference with a previous deal on the table at Euro530 per tonne for the March WECP has the potential to be quite divisive in the current market. We await further developments!

11 March 2009
January PTA Price US
The PTA contract price for January has taken some time to be agreed in the USA. This note is to confirm that it has now settled at 35.94 cents/lb, based on the average paraxylene price of 34.25 cents/lb.

02 March 2009
Artenius PTA shuts for three weeks today
Artenius have announced they need to shutdown their Wilton plant for at least three weeks due to catalyst issues; they will bring forward a planned shutdown from May 2009. This will put a huge strain on European PTA supply as imports have been limited over recent weeks and there is little material in transit. The implications are that Europe could lose 30-40,000 tonnes of PTA production in the near term due to the outage, impacting glycol demand in the process.

27 February 2009
First March MEG settlement in Europe
There was a settlement on 26-2-2009 at Euro530/tonne for MEG for March. This was done between a large MEG buyer in Belgium and a large multi-site EOMEG producer with assets in Belgium, Germany and France. We wait to see if it is confirmed or not.

19 February 2009
MEG Market Update
MEG markets come under pressure as polyesyter demand in China stays away and port inventories build.

SumitomoAramco new MEG plants expected to start up before end February 2009.

The perspective of more capacity coming on line in the Middle East is now putting pressure on Asian spot prices.

19 February 2009
MEGlobal and Sabic announce their March MEG Contract Nomination
MEGlobal announced their March contract nomination at $630 per tonne, the same as for February. The text of the announcement can be found below

?Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be $630 USD/MT CFR Asian main ports for arrival March 2009. The March 2009 MEGlobal ACP reflects the short term supply/demand situation in the Asian market."

Sabic also announced their March nomination for MEG today and nominated $600 per tonne, a roll over of the February number. Shell had previously reportedly announced their nomination at $610 per tonne also a roll over from February to March.

18 February 2009
China PTA Project Update (18 February 2009)
Yisheng Dahua (1.5 million tonnes)
Started up its new plant in Dalian in early February. The plant operation is yet to be stabilised as the company is sorting out various mechanical irregularities. It is believed only one of the two compressors needed has been installed and thus half the capacity is operational at the moment. Full operation is not expected in the near future. PX sourcing is adding to the mounting headaches to reach commercial operation because it has to buy the PX requirement in the spot market until PX plant next door is ready.

Hanbang (640,000 tonnes)
Resumed the stalled construction in Jiangyin in mid-February with the completion target in Q1 2010.

Jialong (640,000 tonnes)
In Fujian is suffering from financing problems which can delay the project beyond Q1 2010. The company had been claiming that the commercial production would begin in February 209.

Chongqing PTA project (700,000 tonnes)
Also known as East Hope, is also facing further delay by another year to end-2009. PX logistic is the primary problem with the distance of 1,300 km from the nearest supplier in Fujian. The other concern is the reliability of the plant design which is reportedly based on locally developed technology.

18 February 2009
March ACP Nomination
Idemitsu nominated $910 CFR for March PX ACP. ExxonMobil nominated $920. February ACP is $720 CFR.

12 February 2009
China Initiates PTA Antidumping Investigation from Korea and Thailand
Announcement No.12, 2009 of Ministry of Commerce on Initiation of Anti-dumping Investigation: PTA from Korea and Thailand

On December 12, 2008, Ministry of Commerce received a petition filed in proper form submitted by Zhejiang Hualian Sunshine, Zhejiang Yisheng and Xiamen Xianglu on behalf of Chinese domestic PTA industry to apply for anti-dumping investigation on imported PTA originating from Korea and Thailand.

In terms of the examination results and Article 16 of the Regulations of The People?s Republic of China on Anti-Dumping, Ministry of Commerce decides to initiate an anti-dumping investigation against the imported PTA originating from Korea and Thailand. Relevant matters are now announced as follows:

The period of dumping investigation is October 1, 2007 to September 30, 2008 and the period of industry injury investigation is January 1, 2005 to September 30, 2008.

This investigation starts on February 12, 2009, and usually will be ended before February 12, 2010. It may be prolonged to August 12, 2010 in case of particularity.

06 February 2009
Invista to cease production at its Offenbach site
The following press release was issued by Invista yesterday 5 February 2009.

?Polyester manufacturer INVISTA Resins & Fibers GmbH intends to cease production at its Offenbach site, after a sales process initiated late last year resulted in no economically viable solution.

?Despite considerable effort by everyone involved, we did not receive a satisfactory bid for the European Polymer and Resins business,? said Chris Hamman, president of INVISTA Polymer and Resins. ?We also evaluated several other options to continue operations at Offenbach, but none of those alternatives were economically viable, either.?

?This was a tough decision because of the effect on our employees, who have made considerable contributions over the years,? Hamman said.

The sales process, originally announced last September, included INVISTA?s polyester manufacturing facilities in Offenbach and Gersthofen, Germany. INVISTA is now proceeding with plans to cease operations at the Offenbach site, which has approximately 280 employees. Portions of the Offenbach business will be consolidated within INVISTA?s Gersthofen facility.

?The European Polymer and Resins team has identified commercial, innovation, and operational strategies to improve the performance of the Gersthofen site,? said Johannes Kinkel, vice president of INVISTA Polymer & Resins for Europe and Asia. INVISTA?s Offenbach and Gersthofen facilities produce Dimethylterephthalate (DMT), amorphous polyester, and polyester for PET resins. Applications include textile, technical, film and packaging in various sectors, such as drinking bottles, automobile parts, yarns, electric parts and housing.?

The implications of the closure will be explored in more detail, by PCI over the coming weeks as the impact becomes clearer.

05 February 2009
West Europe February MEG
West European February MEG prices settled at Euro480 up Euro20 on January.

04 February 2009
India Glycols mothball Fibre Grade MEG manufacture
Following on from the announcement by Mitsui Chemicals, another MEG producer announced its intent to suspend the sale of MEG to polyester manufacturers with immediate effect. The producer, India Glycols is based at Kashipur, India and is manufacturing EO from the renewable agricultural feedstock molasses/bio ethanol. The prices of this feedstock have not fallen in line with crude oil prices leading to this decision. However, India Glycols will continue to manufacture green MEG for niche markets and is also expanding its EOD capacity, based on surplus EO, to produce ethoxylates, PEGs, Glycol Ethers and other surfactant products.

Reliance in the meantime has announced that it will re-start their SMDyechem 40,000 tonnes per year plant from April 2009, which was offline since late 2008. This plant is also based on agricultural sources.

04 February 2009
MEG
February Asia MEG prices rollover at $600-630 - Major MEG suppliers to Asia rolled over their price nominations for February at $600-630.

Several Asia MEG plants planned to shutdown as global surpluses drive down margins with high cost Asia MEG plants closing or mothballing in Japan and India. A 360,000 tonne US plant remains down due to September Hurricane damage and no restart yet determined.

19 January 2009
MEGlobal announce February ACP for MEG
MEGlobal announced its February ACP for MEG at the level of $1,100 per tonne. This announcement took place in the context of very tight markets and Asian spot prices in the region of $1,060-1,080 per tonne. A copy of the notification can be found below:

“Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be $1100 USD/MT CFR Asian main ports for arrival February 2010. The February 2010 MEGlobal ACP reflects the short term supply/demand situation in the Asian market.”

19 December 2008
Sabic Announce January 2009 ACP Price Level
Sabic announced a small decrease of their ACP for January, down $10 on the December level. This is in the context of a slowly firming spot price in China as prices now move cautiously over $500 per tonne CFR. Despite a tight supply and demand position that has improved a little, there still remains a downside risk on prices: several shutdown plants are restarting due to lower ethylene costs. The spot MEG market price remains stable to increasing slowly, mostly due to the closure of Taiwanese assets. If one or more of these assets restarts, after the new agreement reached on spot sales terms, then this could tip the market direction the other way quickly.

19 December 2008
MEGlobal Announce their January ACP at $630 per tonne
MEGlobal announced their ACP for January at the level of $630 per tonne. The text of the announcement can be found below.
"Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be $630 USD/MT CFR Asian main ports for arrival January 2009. The January 2009 MEGlobal ACP reflects the short term supply/demand situation in the Asian market."

This means we have a split nomination for January with Shell rolling over at $610, Sabic reducing their price to $600, and MEGlobal increasing their nomination to $630 per tonne. In the meantime spot prices in China have moved yesterday to over $510 per tonne CFR.

17 December 2008
December ACP Settlement Finalised
December PX ACP has now been settled today at $600 per tonne CFR after further agreements amongst the major buyers and sellers. This follows an initial settlement at the beginning of December by Nippon Oil and its customers at $600 per tonne CFR.

12 December 2008
December Asia/Europe MEG Price
Europe December MEG CP settles at Euro 540.
Asia spot MEG inches upwards in December to $495.

12 December 2008
SK Chemical sells PTA business
SK Energy announced on 11th December that it will acquire SK Chemicals PTA asset (SK Petrochemical) at the price of 4.1 billion Won, equivalent to U$3 million. SK Petrochemical?s PTA capacity is 500,000 tonnes per year and DMT is 100,000 tonnes per year at Ulsan, Korea. The effective transfer date is 24th December 2008.

20 November 2008
US Ethylene Settles in October and November
The US contract ethylene market has settled down 13 ? for November following a 12 ? drop for October. The new PCI contract November price will be 36.5-39 ?/lb for an average of 37.75 ?/lb. Spot ethylene remains near 20 ?/lb. This will put the PCI EO contract price range for November at 47.2-73 ?/lb FOB and the EO market average at 54 ?/lb FOB.

19 November 2008
Shell and MEGlobal announce their December ACP nominations
The last 2008 monthly nomination was unanimous. Three major suppliers settled on the December nomination level of $610 per tonne CFR. Sabic nominated last week as did Shell and now MEGlobal complete the notifications by also nominating at $610 per tonne CFR. A copy of their announcement can be found below:

"Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be $610 USD/MT CFR Asian main ports for arrival December 2008. The December 2008 MEGlobal ACP reflects the short term supply/demand situation in the Asian market."

14 November 2008
AECI Plans to Close SANS PET and Fibre Operations
AECI plans to close the SANS Fibres and PET manufacturing plants, in South Africa, by the end of March 2009. It stated the Fibres and PET businesses at Bellville near Cape Town, South Africa are not aligned with the Company?s long-term strategy of growing as a supplier of specialty products and services to the mining and manufacturing industries.

After extensive efforts to sell the business a suitable buyer has not been found and the PET Polymer plant is scheduled to close by March 2009, subject to final customer requirements.

The company said it will endeavour to do its best to ensure that the exit is done in a responsible manner.

The plant has performed reasonably well over recent times but the current economic climate and high interest rates in South Africa have meant finding a local buyer has proven difficult.

12 November 2008
Sabic announce their ACP for December
Sabic announced their contract price nomination at the level of $610 per tonne CFR a decrease of $290 per tonne. We await further price announcements from other contract suppliers. Spot prices have firmed over the past two days and moved to and above $450 per tonne CFR as a few cargoes are bought and sold presumably strictly on a must do basis rather than as speculation. Markets are very quiet.

In the US the 12 ? decrease for contract ethylene for October remains a partial settlement with at least two major buyers refusing to accept that level and demanding lower prices. A two month settlement may evolve for October and November that will be greater than a 12 ? decline. Spot ethylene in the US has been trading between 20-24 ? for the past week while the partial contract settlement has been at 50.75 ? for October.

06 November 2008
AECI Plans to Close SANS PET and Fibre Operations
AECI plans to close the SANS Fibres and PET manufacturing plants, in South Africa, by the end of March 2009. It stated the Fibres and PET businesses at Bellville near Cape Town, South Africa are not aligned with the Company?s long-term strategy of growing as a supplier of specialty products and services to the mining and manufacturing industries.

After extensive efforts to sell the business a suitable buyer has not been found and the PET Polymer plant is scheduled to close by March 2009, subject to final customer requirements.

The company said it will endeavour to do its best to ensure that the exit is done in a responsible manner.

The plant has performed reasonably well over recent times but the current economic climate and high interest rates in South Africa have meant finding a local buyer has proven difficult.

03 November 2008
US Prices Decline for October and November
A partial settlement for ethylene for October has been done at 12 ?/lb down from September while others pursue a larger decrease. So at least a 12 ?/lb decrease is accepted and that would put the PCI ethylene October contract at 49.5-52 ?/lb delivered for an average of 50.75 ?/lb. That would then set our EO price to 57.6-88 ?/lb FOB as the contract range and the EO average is now 65 ?/lb FOB for October.

MEGlobal posted a November MEG benchmark of 40 ?/lb FOB down from 55 ?/lb and DEG at 58 ?/lb FOB down from 68 ?/lb for October. Old World posted their November EO benchmark at 73 ?/lb FOB down from 88 ?/lb in October.

Asia spot MEG prices have collapsed to near $400/tonne (18.1 ?) for small 1,000-2,000 tonnes parcels from desperate sellers trying to dump cargos while demand falters. Asia ethylene costs near $450/ tonne with naphtha at $350/tonne may perpetuate low MEG selling prices until the cheap naptha stops arriving (refineries are making gasoline that is needed as well as naphtha that crackers do not want being cut back), also seeking a home. DEG is selling in Asia in the mid $400´s CFR China.

Feedback from the Guangzhou trade fare is bad as European and US buyers are either staying away or buying significantly less than in previous years. Indeed the main thrust from polyester and PET producers is to get rid of inventory and make only what is necessary. This also applies to all petrochemicals not only MEG but polyethylene styrene and PVC as well as EODs like ethanolamines. The Chinese government is attempting to stimulate local domestic consumption by making it easier for first time house buyers buy property and trying to encourage bank lending, broadly in line with the UK model. Pessimism reigns in China both for exports and also the domestic GDP views to year end and next year.

29 October 2008
Second European Settlement for October
There was a second settlement at ?805 yesterday for the October European contract price. This was between a large European PET producer with assets in northern and southern Europe and a global MEG marketer and producer.

02 September 2008
Second August MEG Settlement at Euro 950 per tonne DDP, and a first September Settlement
As spot prices in China remain flat to firm and in a range between $900-910 per tonne, after a significant rally, another settlement took place in Europe.

A major PET producer, with assets in North Europe and several countries in South Europe, and a major MEG marketer, agreed to settle August at the level of Euro950 per tonne. They then also agreed to settle September at Euro875 per tonne. This effectively endorses the August level at Euro950 per tonne and plants a benchmark for September. We wait to see if this September settlement is followed by other buyers and sellers.

22 August 2008
The August US Orthoxylene settled
The August US Orthoxylene contract is now settled among all parties at 59.0 ($1300/mt). Nominations for the September contract were 59.5?/lb ($1312/mt) and 64.0?/lb.

15 August 2008
Equipolymers Ottana Declare Force Majeure
Ottana

Equipolymers Ottana declared force majeure on its PTA PET manufacturing site to both its downstream customers and raw materials suppliers. The problem is due to an air compressor problem and this has forced the declaration. The outage duration, as understand it could be a number of weeks.

12 August 2008
Sabic Announced the September MEG ACP
Sabic announced the September MEG ACP at the level of $1,150. This is a decrease from the August level of $1,260.

07 August 2008
First West European Contract Price August Settlement
There was a settlement this afternoon between a polyester producer and a German 2 site MEG producer.

The settlement was at Euro950, an increase of Euro10 over last month.

We await further developments.

07 August 2008
MEGlobal Announced the September ACP
Today MEGlobal announced September ACP at $1,150 for MEG.

05 August 2008
US ethylene settles up 5 ?/lb for June and 4 ?/lb for July
The US ethylene market has finally settled for June and July. The May contract PCI price was 64-66.5 ?/lb for an average of 65.25 ?/lb. June has settled up 5 ?/lb at 69-71.5 ?/lb for an average of 70.25 ?/lb and July up 4 ?/lb to 73-75.5 ?/lb for an average of 74.25 ?/lb.

The PCI EO contract range prices for May were 69.2-82 ?/lb rising to 73.2-90 ?/lb for June and 76.4-95 ?/lb for July. The PCI EO market average was 79 ?/lb for May rising to 83 ?/lb for June and 86 ?/lb for July.

Several EO MEG plants in the Houston area have shutdown waiting for the arrival of tropical storm Edouard on Tuesday.

29 July 2008
Hyosung bids for Hankook?s polyester asset
According to the local industry sources, Hyosung looks to be the most aggressive bidder for the acquisition of Hankook Synthetic in Korea. The postponed bid officially closed on 25 July to accommodate late application from foreign companies. The company?s production capacity includes 270,000 tonnes per year polyester filament, yarn processing, weaving, and dyeing.

23 July 2008
Second Agreement at Euro 940 per Tonne for July WECP
There was a second settlement done today at Euro940 per tonne DDP for the July West European MEG contract price. This was done between the largest European polyester producer and a multiregional MEG marketer and producer.

18 July 2008
Pakistan PTA Import Duty Revised
The Federal Board of Revenue (FBR) has introduced a new duty structure applicable to polyester chain from July 1, 2008. Under the new tariff scheme, duty on PTA and polyester stable fiber (PSF) has been reduced from 15% (which was refundable) to 7.5% (non refundable) and for commercial importers from 6.5% to 4.5%.

To offset the impact of 7.5% PTA duty, PSF manufacturers will be given an R&D subsidy by the Ministry of Textile Industry through State Bank of Pakistan. The scheme which will be announced in the Trade Policy would be adopted from July 1, 2008 but not yet announced.

The local PSF makers are very upset fear the worst case scenario of collapsing if the subsidy is not provided by the Ministry of Textile Industry.

18 July 2008
China PTA Contract Settlement Update
Contract PTA import prices for May and June to China are reportedly settled across the board at $1,030 and $1,150 CFR China respectively.

11 July 2008
First July WECP for MEG at Euro 940 Per Tonne
There was a settlement today at Euro940 per tonne between a Dutch global MEG producer and a multinational Italian polyester producer for July. This settlement has already met with the refusal of several sellers to follow this first deal. The choices are effectively to follow or to see a spilt settlement again.

Market observation is that ethylene costs went up Euro190 this quater leading to a MEG margin loss of between Euro120-140 per tonne, now offset by a price increase of Euro60 from Euro880 to 940.

10 July 2008
Shell announces a roll over for August
Shell announced their August ACP as a roll over from July to August at the level of $1,260 per tonne.

The downstream polyester Chinese margins remain paper thin and the overwhelming mood remains negative ? despite fundamental demand remaining ok short term. End user demand is likely to shrink further as standards of living come under pressure. The value in the value chain using spot ethylene via polyester through to textiles is close to nil.

09 July 2008
MEGlobal announce their August nomination for MEG
MEGlobal announced their ACP for August at an increased level of $1,300 per tonne for MEG, up from $1,260 per tonne for July. The press release can be found below:

?Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be $1,300 per tonne CFR Asian main ports for arrival August 2008. The August 2008 MEGlobal ACP reflects both the short term supply/demand situation in the Asian market and the surging cost pressures in the global hydrocarbons market.?

08 July 2008
European PX Settlements for July 2008
There was an initial settlement of European contract price for July at ?1,085 per tonne between Sabic Europe and Artenius. A subsequent settlement at the same level between another major European seller and a major Mediterranean buyer was also heard done later in the day. The increase is ?135 per tonne ($212 per tonne) over the June level of ?950 per tonne.

A level of ?1,085 per tonne represents a July price level that is at a premium of approximately $40 per tonne to the July Asian contract price level (which was done at $1,625 per tonne last week) and reflects a tighter supply-demand balance in Europe together with a push by producers to regain margin lost as a result of escalating energy and feedstock values.

There is no news of July PX contract pricing in North America at this present time, however the continuing strength of energy and feedstocks pricing is certain to play a significant role in an eventual settlement. One major US producer continues to negotiate for values higher than recent May and June agreements and is thought not to have agreed to the recent settlements of 64.25 ?/lb and 71.25 ?/lb respectively.

Based upon increases in other regions, (Asia +$185, Europe +$212), the prospect for a rise of similar magnitude in North America must be a realistic prospect to plan for.

08 July 2008
Sabic announces a rollover price for August
Sabic announced their nomination for the August ACP for MEG at the level of $1,260/tonne. This represents a rollover from last month?s ACP.

Last week saw softer sentiments in Chinese polyester polymers despite major pressures for increases on PTA due to the impact of crude oil and PX. MEG spot prices are mimicking bottom of the cycle economics being caught between high costs due to feedstocks and higher ethylene, and low market expectations: both in terms of demand and price affordability because of the rest of the raw materials. With crude oil at over $145 the pressure remains on the ethylene chain as is evidenced by the first ethylene settlement in Europe for Q3 with an increase of ?190/tonne, close to $300. This settlement still remains unconfirmed but at least is a clear trend indicator. The European MEG contract price for July remains as yet unsettled.

09 June 2008
MEGlobal Announce an Increased ACP for July 2008
MEGlobal announced an increased ACP today moving up the headline rate from $1,200 to $1,260/tonne CFR for July. The text of the announcement is copied below:

?Please note that the MEGlobal Asian Contract Price (ACP) for Monoethylene Glycol (MEG) will be $1,260/tonne CFR Asian main ports for arrival July 2008. The July 2008 ACP reflects the short-term supply/demand situation in the Asian market.?

The latest view in the past week is that PX and ethylene price pressures have pushed the polyester prices up a little by putting severe pressure on PTA and also MEG costs. Despite complaints from polyester producers about costs, operating rates remain flat at around 80% or so. The fire on the Maoming cracker disrupted market sentiment despite the fact that the associated MEG plant is small in relative terms. Also finally Chinese ethylene producers have cut ethylene rates as the higher naphtha costs feed through to the bottom line. This trimming of ethylene has not doubt affected MEG but by how much remains unclear at this time. The fabric markets remain pretty flat compared to last week but the rumours about the support duty refund increased by 2% for filament and 4% for garments for 1 July seen at APIC continue.

YPC announced their May final price last week at RMB9,150/tonne and posted their June MEG nomination at RMB9,600/tonne, equating to $1,111/tonne CFR 90 day terms.

04 June 2008
Third MEG Settlement for June
There was a third settlement today for the June WECP on MEG. The price agreed was Euro880/tonne between two different buyers and sellers, one being a Dutch MEG buyer and the other a German Belgian based MEG producer. This looks like the final settlement for June unless there are further developments.

04 June 2008
Second MEG Settlement for June
There was a second settlement today for the June WECP on MEG. This time the price agreed was Euro880/tonne, Euro10 lower than the first settlement. This was done between a Dutch MEG producer and Italian based PET producer. The first settlement between a three site EO producer and a very large antifreeze producer was a rollover (Euro890/tonne) and is now being faced with a second settlement at Euro880/tonne. We await further developments!

03 June 2008
European Paraxylene Contract Settled for June
An initial settlement has been made for June paraxylene contract between Artenius and a major northwest European supplier at Euro950. It translates to net parity to June ACP at the exchange rate of 1.5569 to Dollar.

03 June 2008
First settlement for June in Europe on MEG
There was a settlement this afternoon on MEG in Europe at Euro890 per tonne DDP. This was between a three site EO producer and a very large antifreeze producer, a rollover for June versus May.

12 May 2008
MEGlobal Announce June MEG ACP
MEGlobal have announced their ACP MEG nomination for June at $1,200 per tonne CFR following Shell and Sabic. A copy of the release can be seen below:

?Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be $1,200 per tonne CFR Asian main ports for arrival June 2008. The June 2008 ACP reflects the short-term supply/demand situation in the Asian market.?

The US contract April ethylene price is waiting for last minute hold outs to accept the 2 ? increase for April accepted by most buyers. If agreed by all buyers the PCI April price would be 62-64.5 ? delivered. We expect resolution soon. More increases of 4-5 ? were announced for May as rising oil prices push up naphtha and gas oil feedstock costs. Ethane remains below $1 per gallon but has been rising in the past five days and spot ethylene prices have rebounded from the low 50?s to the high 50?s ?/lb delivered.

07 May 2008
Crackers taken down due to power outage
A power outage hit the YNCC in South Korea over the past weekend, affecting propylene availability, as it took down all three crackers. Following restart of one cracker, another power outage took it back down. One of the crackers also is heard to have mechanical problems that may keep it down for several weeks. The BTX unit there is also affected.

Of more immediate market concern is the fact that one of the Korean oxo producers is down due to lack of feedstock, while the other oxo producer has also experienced some effects. This will continue to tighten and already difficult 2-EH market, where spot pricing has been done in a range of $1930-1950/tonne CFR and could now be pushed higher. Increased alcohol pricing has pushed DOP pricing higher with confirmed business in a range of $1820-1840/tonne CFR.

Source: RXN

07 May 2008
New Formosa Plastics butanol plant delayed
The new Formosa Plastics butanol plant is now heard to be delayed into the July-August period, and as we noted in the last Monthly Business Report, merchant quantities of butanol were understood to be unlikely until several months following startup. FPC is heard in the spot butanol market to cover current needs.

Source: RXN

07 May 2008
May US mixed xylene contract unsettled
The US mixed xylene contract or May remains unsettled at this point. Blend values are approximately $3.63/gal ($1110/tonne), while the latest spot mixed xylene business was done at $3.52/gal ($1070/tonne). Economics are becoming increasingly difficult to justify extraction, and would appear to be at a loss on a current basis.

However the US orthoxylene contract has been settled at 56.5?/lb ($1246/tonne), which is an increase of 2?/lb ($44/tonne) over the April settlement. This appears to be a compromise between soaring feedstock costs and moderate demand levels.

Source: RXN

07 May 2008
China May PTA CP announced
BP announced $1050 for May PTA CP in China.

05 May 2008
European orthoxylene contract price settlement
The May contract price for orthoxylene in Europe appears to be more broadly settling at an increase of ?20/tonne to ?840/tonne ($1302/tonne). Producers had sought higher prices based on feedback costs and one producer is heard to be considering shutting down its isomer operations. Consumers point to moderate demand levels. In the end neither side is likely pleased, but the settlement is apparently being more widely accepted. US xylene contract negotiations are ongoing.

Negotiations on US olefins are ongoing as well. The direction is likely higher, but the level certainly continues under some rather strong discussion.

Source: RXN

08 April 2008
US mixed xylene contract settled
The traditional US mixed xylene contract was settled for April at $3.40/gal ($1037/mt or 47.0?/lb) which is an increase of $0.20/gal ($64/mt or 2.75?/lb) over the March settlement. This is viewed as more representative of the actual market than some of what has gone on in the past few months. With the onset of US gasoline season, the direction will be interesting as gasoline pricing has tended to peak earlier in the season.

Source: RXN

08 April 2008
April US orthoxylene price settled
The April US orthoxylene price has been settled at 54.5?/lb ($1202/mt), which is an increase of 2.5?/lb ($55/mt) from the March settlement. The upward move reflects increasing cost, but is somewhat tempered by moderate demand levels.

Source: RXN

28 March 2008
First WECP for April 2008
There was a settlement done today, 27 March, between a large MEG producer with two EO sites and a large Netherlands based tyre cord manufacturer at Euro970/ton DDP. This represents an increase of Euro19 increase over March.

We apologise for omitting to mention the ?970/tonne specifically.

27 March 2008
Initial April ACP Paraxylene Settlement
Idemitsu has agreed April Paraxylene contracts in Asia with its clients at US dollar 1,260 per tonne, a rise of US dollar 90 per tonne over the March settlement. There is no news of settlements between other producers and their customers at present.

Contract discussions for Europe and North America have yet to begin in earnest, but this settlement is likely to influence the upcoming negotiations as energy prices remain elevated and the US gasoline season begins to get underway, potentially driving mixed xylenes pricing higher in the coming months.

17 March 2008
ExxonMobil Announce April Contract Price Nomination
ExxonMobil has given its nomination for the Asian paraxylene contract price for April at US dollar 1,330 per tonne CFR Asia. This is an increase on the current March value of US dollar 1,170 per tonne of US dollar 160 per tonne.

Paraxylene spot prices have been at US dollar 1,260-1,265 per tonne CFR Taiwan late last week and have increased today to US dollar 1,300 per tonne for H2 April material. Strong demand from solid downstream market and reduced operations among paraxylene producers helped boost prices.

Other major producers are expected to announce shortly.

13 March 2008
March US mixed xylene contract price
The US mixed xylene contract price for March is partially settled - full agreement will not be reached for this month?s contract. The partial settlement was heard at $3.20/gal ($973/mt or 44.25?/lb). This is an increase of $0.34?/gal ($104/mt or 4.7?/lb) from the February contract price. Interestingly, the settlement was reached when mixed xylene blend values have topped the $3.30/gal level, and with energy prices continuing relentlessly higher.

Source: RXN Catalyst

13 March 2008
Sabic post a price increase for the April MEG ACP
Sabic posted a price increase for their nomination in April for MEG of US dollar 40 per tonne. This is an increase to US dollar 1320 per tonne from US dollar 1280 per tonne in March. Spot MEG markets have slipped a little and spot levels have moved back towards to mid US dollar 1100´s for imported material with domestic product at this time pretty flat at Renminbi 9600-9700 per tonne cash.

11 March 2008
Correction to March Outlook Report
The March outlook listed the European PTA prices for Quarter 4 in the table on page 14. The market prices quoted should have been in Euro?s and not US Dollars as stated.

Please accept our apologies for this misprint, the corrected table is show below.

WEST EUROPE PTA MARKET PRICE

Date - Euro/Tonne

25/10/2007 - 818-909
25/11/2007 - 813-904
18/12/2007 - 817-912

11 March 2008
Shell announce their April MEG ACP
Shell announced an ACP level for April arrival of US dollar 1320 per tonne CFR, US dollar 20 less than the MEGlobal announcement. This is a US dollar 60 increase on the March level which was set at US dollar 1260 per tonne.

07 March 2008
MEGlobal open April MEG ACP announcements
MEGlobal announced their ACP nomination today at US dollar 1340, an increase from the March level of US dollar 1280 per tonne. The text of the announcement can be seen below:

?Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be US dollar 340 per metrics tonne CFR Asian main ports for arrival April 2008. The April 2008 ACP reflects the short term supply/demand situation in the Asian market.?

06 March 2008
Initial European Paraxylene Contract Settlement - March 2008
An initial Paraxylene contract settlement has been heard at Euro 795 per tonne for March 2008, a Euro 10 increase over the February 2008 contract price. This agreement was reached between Invista and a NW European producer and reflects a rise of similar magnitude in Asian contract markets. The weakening US dollar exchange rate has reduced the Euro impact of the increase.

04 March 2008
US Ethylene Settles Down 3 cent for February
The US contract ethylene price has settled at a 3 cent decrease from January. The February PCI contract price will be 57.0-59.5 cent per pound delivered for an average of 58.25 cent per pound delivered. This settlement will thus set our US EO contract prices to 63.6-81.0 cent per pound FOB and our market average will be 74 cent per pound FOB.

Also MEGlobal has announced a decrease in their March MEG and DEG benchmarks. MEG decreased to 62 cent per pound FOB from 64 cent per pound and DEG decreased 6 cent from 54 cent per pound to 48 cent per pound FOB.

03 March 2008
Paraxylene March ACP Partially Settled
Paraxylene March ACP partially settled at US dollar 1,170 CFR between Japanese supplier and buyer, US dollar 70 higher than February.

BP nominated US dollar 950 for March PTA contract price in China. Local PTA producers nominated RMB8000-8200, equivalent to US dollar 903-925 per tonne.

According to China?s Statistic Bureau, China?s polyester fibre production (not including PET) in 2007 was 19.2 million tonnes. This represents a volume growth of 3.1 million tonnes or 19.5 percent over 2006.

28 February 2008
Correction to PCI March 2008 Market Outlook Report
We quoted in the Ethylene Oxide & Glycol Market Outlook Report for March 2008 that:

´Shell leads February Asia CP at US dollar 1,260 followed by MEGlobal and Sabic at US dollar 1,280.´

This should have read:

Shell leads March Asia CP at US dollar 1,260 followed by MEGlobal and Sabic at US dollar 1,280.

26 February 2008
First March MEG Settlement at Euro 951 Per Tonne DDP
There was a first MEG settlement today at Euro 951 per tonne DDP between a large Italian and multinational PET producer and a Netherlands based EOMEG producer. This takes place in the context of a sharp fall in the MEG ACP levels from February at US dollar 1,460-1,500 to March at US dollar 1,260-1,280 per tonne CFR. That said despite one very low spot bulk deal in Europe below Euro 700 per tonne CFR, more recent deals have been done a little below Euro 750 per tonne CFR and spot prices are rising. Asian spot levels are also slowly moving up over US dollar 1,150 per tonne CFR as traders move product. Therefore if the arbitrage between Europe and Asia is not yet open yet, it will be imminently.

26 February 2008
Second MEG Settlement for Europe in March
There was a second deal done for the contract price of MEG at Euro 951 per tonne DDP this afternoon between a South German EOMEG producer and a German PES producer.

21 February 2008
FCFC Ningbo PTA Approved
Rumours are strongly speculated that FCFC´s PTA plant in Ningbo received approval from NDRC early this week.

Official announcement is yet to be made by the company but we believe this 800,000 tonnes per year capacity, mechanically completed in Q3 2007, can start commercial operation in early June.

19 February 2008
US PTA and DMT Prices for January 2008
There appears to be some questions relating to the PTA and DMT prices for January. For the record the paraxylene price settled eventually at 54.75 cents per pound and the PTA price settled at 49.67 cents per pound after the quarterly adjustment.

The DMT price settled in the range 55.95-56.85 cents per pound based on essentially flat methanol prices.

18 February 2008
Shell and MEGlobal announce ACP for March 2008
Shell opened the announcements for the March ACP at US dollar 1,260 per tonne CFR. Markets remain quiet at this time as a lot of buyers are still on holiday. Some marginal business was done at around US dollar 1,080 per tonne CFR for imported material to China from Taiwan for end month delivery.

MEGlobal have announced their ACP for March at US dollar 1,280 per tonne CFR. The text released can be found below:

?Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be US dollar 1,280 per tonne CFR Asian main ports for arrival March 2008. The March 2008 ACP reflects the short term supply/ demand situation in the Asian market.?

18 February 2008
Sabic Announce March MEG ACP
To complete the announcements for March, Sabic have opened their ACP announcement at US dollar 1,280 per tonne. This is the same level as MEGlobal and US dollar 280 per tonne down on last month, but higher than the Shell level: Markets remain very quiet today.

29 January 2008
1st February West Europe Contract Price Settlement
There was a settlement done today between a Global MEG Marketing Company and a large multi country European PET producer at Euro1,095 per tonne DDP.

12 December 2007
Sabic Announces a Rollover of Their MEG ACP for January 2008
Sabic announced yesterday that they would rollover their December ACP nomination for MEG of $1,590 per tonne CFR to January as well.

07 December 2007
MEGlobal Announces $1,590 Rollover for January Asia CP
The MEGlobal announcement for their January Asia price is as follows:

MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be $1,590 per tonne CFR Asian main ports for arrival January 2008. The January 2008 ACP reflects the short term supply/demand situation in the Asian market.

19 November 2007
S-Oil PX Expansion Plan
S-Oil?s board today approved the U$1.5 billion expenditure for the construction of second aromatics complex in Onsan Complex. When the construction is completed by June 2011, the new aromatics unit will produce 900,000 tonnes of paraxylene and 280,000 tonnes benzene per year. The refining capacity will also be upgraded from 580,000 bpd to 630,000 bpd to feed sufficient naphtha to the aromatics complex.

S-Oil?s current PX production capacity is 750,000 tonnes per year.

05 November 2007
Second MEG November Settlement Completed
There was a second settlement today at the rollover level of Euro1,108 per tonne DDP between a major tyre cord manufacturer in the Netherlands and a German EO/MEG producer with two sites.

In the meantime in Asia spot MEG hit close to $1,550 today, spot MEG increases steadily in view of the scarcity of available MEG. This includes European material shipped to Asia at over $1,500 per tonne CFR, sold presumably by a European producer in order to preserve European supply demand balances.

19 October 2007
Second Settlement for October MEG at Euro 1,108 done
A second settlement was done today at the level of Euro 1,108, which confirms the initial settlement done at EPCA at Berlin. This second deal was done between a three site EO producer and the largest non-integrated antifreeze blender in Europe. This confirms the Euro 1,108 per tonne contract price nomination for Europe. Spot MEG prices in Europe have stalled as downstream buyers are buying strictly to contract or indeed going for turnarounds where possible (PET for example). Blenders are drawing down antifreeze stocks and driving down supply chain inventories are as indeed the polyester producers. Spot prices in Asia until this morning were still increasing despite the problems polyester is having in recovering the large increases in MEG costs in their product prices.

17 October 2007
Sabic Announce Asian MEG Contract Price for November
Sabic announces $1,390 per tonne CFR for their Asia MEG November CP. This move quickly follows the Shell rollover of $1,400 and the MEGlobal move up from $1,350 to $1,400.

12 October 2007
Shell Announce Their November MEG ACP Nomination
Shell announced their November ACP MEG nomination at the level of $1,400/tonne today, a roll over from their October level.

11 October 2007
BP Exits Samsung Petrochemical PTA JV
According to Samsung Corporation´s voluntary disclosure at the Stock Exchange in Korea on 10 October, the company announced it acquired 14.22% of Samsung Petrochemical at the price of 19.2 billion Won (approximately U$21 million) from BP. As a result of this acquisition, Samsung Corporation´s total shareholding is increased to 27.27% to become the second biggest shareholder. BP has been in negotiation with Samsung group to sell its 47.4% shareholding to exit from the PTA joint venture in Korea. The remaining 33.18% has been acquired by Lee Bu Jin, who is currently Vice President of Hotel Shilla and the eldest daughter of Samsung Group chairman. The estimated acquisition price is 45 billion Won (approximately U$49 million). Samsung Petrochemical´s combined capacity at Ulsan and Daesan is 1.8 million tonnes.

11 October 2007
MEGlobal Announce Their November Price Nomination
MEGlobal announced their price for MEG deliveries in November on 10 October at the level of $1,400/tonne CFR an increase over October of $50/tonne. Their assessment is that this reflects the short-term supply/demand situation in the Asian market.

Spot MEG prices over the past few days have been around $1,390-1,400/tonne CFR, one cargo being sourced from Taiwan for end October lifting. At this time spot markets remain quiet as polyester producer?s assess the situation.

11 October 2007
TPPI Aromatic Plant Shutdown
Trans-Pacific Petrochemical Indotama (TPPI) Aromatic unit was shutdown on 5 October due to power outage. The first attempt to restart the plant on 9 October failed but resuming to normal production is planned during next week. Currently loading schedules for next week are unchanged but rescheduling discussion is on-going for after mid-October shipments. TPPI´s PX capacity in Tuban is 550,000 tonnes per year and benzene 350,000 tonnes. The plant was operating at much higher rate than the nameplate capacity until before the outage.

08 October 2007
Initial European Paraxylene Contract Agreements for October
There were several initial settlements made yesterday for the European October PX contract at Euro760 per tonne between a major producer and three seperate consumers. The agreements were made based on a $/Euro exchange rate assumption of 1.425.

02 October 2007
WECP First October Settlement
There was a settlement at EPCA on 1-10-2007 for MEG at the level of Euro1108/tonne DDP, a large increase over the September level of Euro905/tonne DDP reflecting Asian price increases. We wait to see if this is followed or not.

28 September 2007
IOC Mega Plan: Rs 43,250-crore capex in 5 years
According to Economic Times of India, IOC (Indian Oil Corporation), on Monday said it would spend Rs 43,250 crore (U$10 billion) over the next five years to carry out its expansion programs. Of this, Rs 30,000 crore will go into downstream integration," IOC chairman S Behuria told reporters on the sidelines of the company´s annual general meeting. The government-owned company controls 10 out of India´s 19 refineries and accounts for 40.4% share of national refining capacity. It has 60.2 million metric tonnes per annum refining capacity. Behuria said the naphtha cracker project in Panipat in Haryana is slated for commissioning in 2009 (includes 350,000 tonnes MEG plant). The company has already commissioned a 553,000 tonnes Paraxylene/PTA plant in Panipat. An integrated refinery-cum petrochemicals complex (including 1.2 million tonnes PX project) is also coming up at Paradip in Orissa which would further enhance its downstream integration, the Chairman stated.

13 September 2007
Sabic Announce Their October MEG Nomination
Sabic announced their ACP nominations at $1,275 per tonne for October 2007 today.

10 September 2007
Hualian Sunshine Stops PTA due to Commercial Reasons
Hualian Sunshine?s two PTA lines shutdown today due to commercial reasons for the estimated duration of a week. The overall PTA stock level has been rapidly rising in China since August as the industry waited for the seasonal upturn in demand.

07 September 2007
Shell Nominates $1,400 per tonne for the October Asian Contract Price
Shell nominated their October MEG price level as $1,400, after MEGlobal nominated $1,350 per tonne yesterday. Spot markets are very thin at this time as sellers seek to push up their prices but buyers remain wary of commitment. There have been some cases now of polyester producers selling MEG to the trade because they can make more money that way than making and selling polyester!

06 September 2007
MEGlobal Announces $1,350 for Asia MEG October CP
MEGlobal announced $1,350 per tonne CFR for their October Asian contact price. This is an increase of $290 per tonne over their September price of $1,060 per tonne CFR. PCI has confirmed inter-trade spot prices in Asia at $1,300 per tonne CFR and spot prices in Europe are at or above that level. There are substantial unplanned losses of MEG supplies adding to an already tight market. PCI projections are that supplies will only become more difficult over the next 2-3 months.

Several of the largest US antifreeze blenders have announced a $1.00 per gallon increase for September 10 following a 50 cents per gallon increase for September 4. Global markets are now preparing to deal with the highest contract prices in recent history. MEG inventories will probably fall to the lowest days stock level ever recorded. The supply crunch is developing at the same time PCI is predicting the strongest growth ever for MEG demand with a global market seeking up to 1.3 million tonnes of new supply, far exceeding any prior year by as much as 200,000 tonnes. The "perfect storm" has arrived from the buyer?s point of view on MEG. The silver lining might be lower PTA prices for the buyers helping cushion the MEG price increases.

05 September 2007
European PX Settlements Emerging for September 2007
After an initial settlement between BPRL and Diolen at Euro792 per tonne delivered, further settlements have been agreed between other European producers and consumers at the Euro792 per tonne level.

One large consumer has yet to agree the September contract number and we await news on the progress of discussions in that area.

31 August 2007
Second West European Settlement at Euro 905 per Tonne DDP for September
There was a second deal done today between a large PES/PET MEG buyer based in Germany and an Antwerp based German producer today. Spot prices for MEG in Europe have suddenly shot up as the realisation that material is tight hits home. Spot trucks have moved up into the Euro 900 band, although one or two cheaper East European trucks at a little below Euro 900 per tonne DDP are being mopped up. Spot trucks are now talked about in a wide range from Euro 930-990 per tonne DDP, although at this time most are being done around the middle of the band. Bulk volumes seem to be non existent at this time.

29 August 2007
First September MEG WECP Settlement at Euro 905 per Tonne DDP
There was a settlement today between a major EOMEG producer with 3 sites and a PET producer in the Netherlands. This settlement reflects the events in the Far East and changes to exchange rates ? and much tighter MEG markets in Europe. The August settlement was Euro 836 per tonne in the end. Asian spot MEG prices have faltered and come off as caution enters into the market as PES rates are trimmed. PES producers are watching the PTA price reductions and playing a waiting game. Spot values at this time are around $1200 per tonne CFR and slipping.

29 August 2007
US Contract Ethylene Settles for August
The US contract ethylene price has now settled for August up 1?. Our published range moves up from 47-49.5?/lb delivered to 48-50.5?/lb delivered. The US EO market range for August is 56.3-78? /lb. FOB and the EO market average is 70 ?/lb. FOB.

21 March 2007
Pertamina to acquire Polyprima PTA plant
According to market sources, Indonesia´s state company Pertamina is preparing to submit an indicative offer to acquire Polyprima PTA plant with the capacity of 480,000 tonnes. Polyprima is currently running at 70% with the strong paraxylene support from Pertamina. Both companies are said to be keen to close the deal within a few weeks.

21 March 2007
Radici Worldbest in Changzhou announced bankrupt
Radici Worldbest, a PET producer in Changzhou, China, has been announced bankrupt on 16 March 2007 and its Italian shareholder withdrew from the company. It is rumoured that China Resources Petrochemical is considering investing in the company.

01 March 2007
The Indian Central Budget for the fiscal year 2007-08
The Indian Central Budget for the fiscal year 2007-08 was presented to the Parliament this morning.

Highlights

> Import Duty on Polyester Chain and feed stocks brought down to 7.5% from 10%
> PTA, DMT and MEG, polyester chips and PFY and PSF will now attract 7.5% import duty.
> No change in PX, stays at 2%.
> No change in Excise Duty. Stays at 8%. This was brought down from 16% to 8% in last year´s budget.
> Textile Upgradation Fund (TUF) Scheme extended with higher allocation. TUF Scheme also extended to handloom sector.
> Education cess increased from 2% to 3%.

Details and effect will follow soon.

26 February 2007
Spot PX price inched up to $1135-1145
Spot PX price inched up to $1135-1145 FOB Korea on the back of higher crude at $61.41 on 23 February.

26 February 2007
Suppliers reject one major buyer bid
Suppliers reject one major buyer´s bid of $1,060 for March PX ACP.

26 February 2007
Hualian Sunshine #3 PTA unit on operation
Hualian Sunshine´s #3 PTA unit appears to be on commercial operation since 19th February.

26 February 2007
Yisheng domestic PTA list price for February
Yisheng´s domestic PTA list price for February is RMB 8,250 at par with YPC. However, the netback could be as low as RMB 8,115 after the discount and delivery cost borne by the seller.

26 February 2007
January and February PTA contract price in China
January and February PTA contract price in China could end up in a combined settlement. Buyers and sellers are at $860/870 CFR.

26 February 2007
YPC announced February MEG CP
YPC announced February MEG CP at RMB 8,250.

26 February 2007
Polyester filament plants maintained 80%
Polyester filament plants maintained 80% operation, while staple plants were at 65% during the holidays. Filament stock appears to be higher than normal.

26 February 2007
Textile market in Shaoxing reopened
Textile market in Shaoxing reopened on 24 February.

15 February 2007
Liquidation of Hankook Synthetic
The creditors of Hankook Synthetic finally decided on February 5 to liquidate the company. The company was founded in 1987 and began production in 1991. Total filament capacity is 780 tonne/day.

15 February 2007
KP Chemical IPA expansion
KP Chemical announced on February 13 the plan to expand its IPA capacity by 100,000 tonnes to 200,000 tonnes per year. The completion is expected during the Q4 2007. KP will utilise UOP´s Meta Xylene recovery process from mixed xylene.

31 January 2007
Hankook Synthetic Future
According to a local newspaper report on 30 January 2007, the 3 major creditors -Korea Development Bank, Shinhan Bank, and Samsung Petrochemical- to the polyester filament producer Hankook Synthetic met on 29 January and rejected the application for Court Receivership filed by the troubled company. The final decision is expected on 5 February and if the petition is rejected, the 300,000 tonnes per year polyester company will have to be liquidated.

29 January 2007
China PTA import
China´s total PTA import volume for 2006 was 7.0 million tonnes.

29 January 2007
China PTA contract price
Local PTA contract price for January 2007 was revised down to RMB 8,400 from the initial RMB 8,400. February tentative price is nominated at RMB8,400.

29 January 2007
China import PTA prices for January slide
Some of the import PTA prices for January slide to U$870 CFR from the initial U$900 CFR.

29 January 2007
Asia spot PTA bid falls
Spot PTA bid falls to $840 on high inventory built up by large import volume in November and December 2006.

18 December 2006
PTA spot price bid/offer gap narrowed
PTA spot price bid/offer gap narrowed to $875/880 CFR on the back of firm demand from polyester sector and higher paraxylene price ideas for January.

12 December 2006
Idemitsu nominated January 2007 PX ACP
Idemitsu nominated today $1,090 CFR for January 2007 PX ACP, which is $60 higher than December ACP of $1,030.

04 December 2006
November PTA local contract price in China settled
November PTA local contract price in China settled at RMB 8,650 per tonne delivered, 90 days bank acceptance by YPC. Other local suppliers settle mostly at the same price.

04 December 2006
December PTA contract nomination same as November
December PTA contract nomination at the same price as November settlement of RMB8,650.

04 December 2006
Nomination for December CP for imported PTA
Nomination for December CP for imported PTA is $910 CFR.

04 December 2006
December PTA spot market is sluggish
December PTA spot market is sluggish with a wide gap in price ideas. Buyer/seller at $860-880 CFR 90 days.

04 December 2006
Zhejiang Yisheng to build a PTA unit in Dalian
According to an unconfirmed report, Zhejiang Yisheng is planning to build a PTA unit in Dalian employing Hitachi technology.

28 November 2006
December ACP partially settled
December ACP partially settled at 1030 CFR between JE and Mitsui Chemcial.

28 November 2006
PTA December CP nomination
PTA December CP was nominated 910 by Mitsubishi.

27 November 2006
Indorama Group announces pet investment in Egypt
Indorama Group announces a 300,000 tpy pet investment in Egypt

Indorama Group has decided to install a new continuous plant for production of PET RESIN with a capacity of 300,000 tons per year in Egypt. The total investment outlay is expected at US$65 million.

Indorama believes that this facility between Alexandria and Cairo will be one of the most competitive sites for the production of PET RESINS in terms of both initial investment cost as well as in terms of operating costs. Egypt geographically is well situated to better serve customers in Mediterranean region, Europe as well as Pan African region. The expanded capability will enable Indorama to produce a more diversified range of products and optimize its costs position. The plant is expected to be commissioned in 2008.

22 November 2006
PTA offers retreated
PTA offers retreated to $880/RMB8350 on November 21, after reaching the peak of $900 CFR.

09 November 2006
Yangtzi Petrochemical starting up #2 PTA unit in Nanjing
Yangtzi Petrochemical is in its final preparation stage of starting up its #2 PTA unit in Nanjing, China. It is reported that the 600,000 tones per year plant employing Invista technology is ready for commercial production in late November 2006.

09 November 2006
Reliance Industries bidding for BP Belgian refining
According to the article in the Times of India dated 9 November 2006, Reliance Industries are understood to have bid for British Petroleum?s (BP) Belgian refining and petrochemical assets valued at $2-3 billion. RIL made the offer during a meeting between its chairman Mukesh Ambani and visiting Belgian Prime Minister Guy Verhofstadt on Tuesday, sources said. The company is believed to have offered to buy BP Plc?s refinery and petrochemicals facility in the European country. RIL Board is meeting on Thursday to approve a proposal for raising two billion dollars (about Rs 9,000 crore) for making investments in oil and gas business. The funds could be raised by way of Foreign Currency Convertible Bonds, syndicated loan or fixed or floating bonds.

06 October 2006
October Paraxylene ACP settlement
Subsequent to the initial paraxylene ACP settlement for October reached at the EPCA meeting between CAPCO and ExxonMobil, agreements have also been reached in Japan between the buyers and sellers at $1,260 per tonne. This is a drop of $140 from the September ACP of $1,400 CFR per tonne. PTA producers are said to be aiming to settle both September and October prices at $1,060 CFR, which if successful, would achieve a two-month average spread of $183.

06 October 2006
The start up of Hualian Sunshine
The start-up of Hualian Sunshine´s #2 PTA unit (600,000 tonnes per year) is imminent followed by #3 unit (with the same capacity) in November. Yangtzi and Yisheng´s second plants, both 600,000 tonne capacity, employing the same technology are also expected to start up in November.

05 October 2006
Asian paraxylene spot price dropped
Asian paraxylene spot price sharply dropped on Wednesday, October 4, amid very thin trading volume. A $1210 CFR Taiwan November was heard done followed by $1190 CFR, although buyer and seller are unconfirmed.

05 September 2006
Asian PTA and chip prices dropped
While the Asian PX spot offers rose to $1,500 CFR October, PTA and polyester chip price began its descent in the first week of September. PTA price in China declined by RMB50 to RMB11,050 and fibre grade chip dropped by RMB20 to RMB12,930.

28 August 2006
MX continued its downtrend
Mixed xylene continued its downtrend on Friday, August 25. One parcel was reportedly taken at $1,045 CFR Taiwan for Oct delivery, $30 lower than a day earlier.

28 August 2006
September PTA nomination in China
Mitsubishi and Mitsui nominated $1,200 CFR for September PTA contract price in China. Spot price ideas in the range of $1,150-1,180.

28 August 2006
Asian paraxylene market stabilised
Despite the weakening mixed xylene value, Asian paraxylene market was stable on Friday. Spot buying indications were heard at $1490 CFR for September.

19 July 2006
The August PX ACP has been settled today
The August PX ACP has been settled today between Japan Energy and Mitsui/Samsung at $1,200 CFR. It is a $50 increase from the July ACP of $1,150.

19 July 2006
Bullish PX sentiment is driving PTA spot price higher
Bullish PX sentiment is driving PTA spot price higher to the psychological barrier of $1,000. Inter-trade deal is said to have been done at $1,000 CFR today.

03 July 2006
PTA price in China is showing some sign of stress
While the paraxylene spot price ideas continue to inch forward to $1,300 CFR, PTA price in China is showing some sign of stress. End users are partially taking contract volumes at $970-980 to leverage with cheaper spot cargos in the range of $950-960

30 June 2006
Indorama PTA plant in Mab Ta Phut was shutdown
Indorama´s PTA plant in Mab Ta Phut was shutdown on June 21 due to power failure. Restart is expected on July 1.

20 June 2006
July PX ACP was settled today
July PX ACP was settled today between a Japanese supplier and major buyers at $1,150 CFR. This is a $100 jump from June contract price.

20 June 2006
PTA contract price in China nominated
BP nominated $980 for PTA contract price in China.

15 June 2006
NPCC nominated July paraxylene ACP
NPCC nominated today $1150 for July paraxylene ACP. It is a $100 increase over the June ACP.

06 June 2006
TPPI Indonesia began on-spec PX production
TPPI, Indonesia began on-spec PX production during the first week of June 2006 and is said to be building up inventory for shipment within a couple of weeks.

06 June 2006
Resistance to the June PTA contract price of $880
Resistance to the June PTA contract price of $880 ebbing away as PX spot sours close to $1300 CFR.

31 May 2006
Asia PTA spot price
PTA spot price in Asia rose to U$860 CFR China with further strengthening potentials.

31 May 2006
June PTA contract price nominated in China
BP and Mitsubishi nominated U$880 CFR for June PTA contract price in China. If this price is accepted, PTA margin improves to $187 over PX ACP of U$1,050.

16 May 2006
Exxonmobil nominated $1,120 for June PX ACP
Exxonmobil nominated $1,120 for June PX ACP. Settlement for May was $1,020.

15 May 2006
Hualian Sunshine PTA #2, 3 delayed
Hualian Sunshine PTA #2, 3 delayed. According to a company source, the start up of #2 unit has been pushed back to December 2006 and #3 to February 2007. The reason is not disclosed but insufficient feedstock is suspected.

15 May 2006
BP Zhuhai #2 unit has been approved by the NDRC
BP Zhuhai #2 unit has been approved by the NDRC. Completion of 900,000 tonne per year PTA plant is expected by December 2007.

18 April 2006
May ACP Nomination
ExxonMobil and Japan Energy nominated $1060 CFR Asia for May 2006 paraxylene ACP. April nomination was $990 against a roll over settlement of $950.

07 April 2006
April Paraxylene ACP Roll-Over
Japan Energy settled April ACP at $950 CFR with its major accounts, unchanged from the March contract price. Meanwhile, another major supplier is said to be holding out $970 CFR.

07 April 2006
April PTA contract price in China
April PTA contract price in China increased to $810 but PTA margin remain unattractive.

07 April 2006
April Asia Spot PTA price
Spot PTA price in April firmed up above the contract level to $815-820 as end-users begin restocking ahead of May holiday.

07 April 2006
April PX ACP
PX ACP for April was settled at a roll-over of $950 while spot continues to be bullish in the range of $1,000-1,020 FOB Korea.

03 March 2006
USA to launch anti-dumping investigation on Chinese PSF
China´s Chamber of Commerce for Import & Export of Textiles announced on 27 February that a preliminary meeting was held in Ningbo between USA and China to review the anti-dumping policies and preparation of response strategies. It reported that US is launching anti-dumping investigation in late March or early April on polyester staple fibre exported from China. More details can be found at http://www.ccct.org.cn/ccct/ccct/showmsg.jsp?trrfnum=yw17&msrfnum=yw17000002

01 March 2006
Sentiment in Asia crumbles
In China one spot PTA deal was reported done at RMB 7,900 ($788) on February 27. Spot PX bid/offer at $940/980 CFR for April.

27 February 2006
Heavy PTA shutdown schedules in March
Samsung PTA plans a turnaround for #1 unit (200,000 tpy) from March 13 for two weeks. Samnam #3 and 4 PTA units with 500,000 tpy capacity each are scheduled for 1 week and 2 weeks shutdowns respectively in March.

27 February 2006
March 2006 PX ACP Initial settlement
BP and NPCC have reportedly reached an agreement for March ACP at $950 CFR, $40 lower than February.

22 February 2006
China to Keep Yuan Basically Stable in 2006
The People´s Bank of China made the pledge in its Q4 2005 Monetary Policy Report, released on its website on 21 February, while outlining objectives for the coming months. China´s central bank vowed to keep the exchange rate "basically stable" in 2006 while allowing market forces to do their work, within limits. Initiative will be taken to improve the managed float system in a gradual and controllable manner, and in accordance with the need for the stable development of the nation´s economy and finance. The report also claimed to keep the yuan basically stable at a reasonable and balanced level, allowing the market forces to exercise their basic functions in forming the exchange rate.

17 February 2006
PTA spot ideas in China further declined
February 16, 2006: PTA spot ideas in China further declined to $820-830 level while the contract suppliers are holding $850. The initial contract price nomination for February was $890 but the LC open price range is $840-850.

13 February 2006
February China PTA Contract Price
Contract PTA price in China is not able to hold $860 for February as the demand stays soft. Tentative L/C opening price is reported in the range of $840-850.

13 February 2006
PX bid/offer ideas on February 10 declined
PX bid/offer ideas on February 10 declined to $970/995 CFR China or Taiwan for March.

23 January 2006
February PX ACP Settlement
February 2006 Paraxylene ACP initially settled between ExxonMobil and Mitsubishi at $990 CFR. It is a $90 per tonne increase over the January price of $900.

16 January 2006
Taekwang #2 PTA Project
Taekwang is expected to forge ahead with the second 500,000 tonnes per year PTA project despite unfavorable PTA margin forecast. Reactor delivery is scheduled for the middle of 2007 but the company is still in negotiations with the vendors for the compressor, heating oil heater and agitators.

16 January 2006
February ACP nomination
Initial nominations for Paraxylene ACP for February 2006 were announced today by major producers. NPCC $1000, Idemitsu $1030, ExxonMobil $1040. The lowest nomination is $100 higher than January ACP reflecting the strong demand from the PTA sector

13 January 2006
Mangalore refinery tenders mixed xylenes to sell
Mangalore Refinery and Petrochemicals(MRPL), a subsidiary of ONGC India, is inviting proposal to purchase its surplus mixed xylenes. MRPL is in the process of refinery upgrade to meet European gasoline requirement which will provide 240,000 tonnes per year mixed xylenes beginning from August 2006.

12 January 2006
PBT plant in Malaysia ready to start-up
Toray BASF PBT Resin joint venture in Kuantan, Malaysia is near to mechanical completion in January 2006 and is expected to be fully operational in February. With the total production capacity of 60,000 tonnes per year, Malaysia´s PTA demand is to increase by as much as 45,000 tonnes per year. Polybutylene Terephthalate (PBT) is mainly used in automotive parts, mechanical engineering and electrical components.

12 January 2006
Asian PX spot inches up
Asian PX spot inches up amid strong PTA demand recovery. Offers from major traders are $1050-60 CFR Taiwan for February and March delivery. Firm bid is at $980 FOB Korea for February.

12 January 2006
PTA and MEG spot inquiries subsided
PTA and MEG spot inquiries have subsided as the lunar new year holiday approaches. PTA spot is only at $835 CFR, only $5 above the contract level.

11 January 2006
Hualian Sunshine 2 PTA plants start up in August and October 2006
Hualian Sunshine´s 2 PTA plants employing Invista technology with the capacity of 600,000 tonnes per year each are expected to start up in August and October 2006. The plant design is identical to Yizheng #2 and Yisheng #1 that were completed in 2005.

11 January 2006
TPPI Ready to Feed Condensate
Trans Pacific Petrochemical Indorama (TPPI) is almost ready to start-up its condensate splitter in Indonesia in February 2006. The first parcel of condensate is expected to arrive in Tuban, Indonesia in late January. UOP´s aromatics unit with the annual capacity of 550,000 tonnes paraxylene, 210,000 tonnes benzene, 100,000 tonnes toluene and 120,000 tonnes orthoxylene is planned for commissioning from April 2006.

05 January 2006
PX ACP January 2006
PX ACP for January 2006 was settled at $900 CFR by major accounts. Initial nominations were $950-970.

14 December 2005
Invista Taiwan T10 PTA unit shut down
On December 12, Invista Taiwan´s T10 PTA unit (550kta) was shutdown due to a mechanical problem. The nature of the problem is suspected to be associated with dehydration tower. Estimated repair time is less than 2 weeks but the line will remain shut for a month to carry out the scheduled turnaround in December.

07 December 2005
Mitsui, Mitsubishi Chemical accepted $840 as PX ACP December
Mitsui, Mitsubishi Chemical accepted $840 as PX ACP December with major suppliers but one major buyer rejected, still demanding lower price.

07 December 2005
Mitsubishi announced December PTA CP
Mitsubishi announced $800 CFR for December PTA CP In China.

29 November 2005
December PX ACP negotiation in stalemate
December PX ACP negotiation in stalemate. PTA side is demanding some kind of compensation for the squeezed margin during October and November. Buyers´ idea is close to $800 while the nomination stands at $960.

29 November 2005
On the back of a very soft PET market
On the back of a very soft PET market, European PTA operating rates start to be hit, PTA sellers report sales softening.

08 November 2005
PTA stock level is rising rapidly
PTA stock level is rising rapidly at the producer-end as Chinese buyers wait for further price decline in November.

08 November 2005
Korea and Taiwan end-October PTA stock
End-October PTA stock in Korea and Taiwan is estimated at 270,000 tonnes, more than twice the normal level.

08 November 2005
Chinese PTA end-users asking for Korea/Taiwan contract cargo
Some Chinese PTA end-users quietly asking for contract cargo shipments from Korea and Taiwan, an evidence of low PTA stock level in China.

08 November 2005
Asian spot PX quotations
Asian spot PX quotations rally around $900 FOB or CFR in the second week of November.

08 November 2005
PX stock in Asia is rising
PX stock in Asia is also rising as PTA demand and consumption is subdued.

20 October 2005
US-China Fail to Reach Agreement Over Textiles
The latest round of talks aimed at resolving the textile trade dispute between China and the US ended on the 13 October without a deal being reached. Both sides blame each other despite encouraging signs in previous talks.

18 October 2005
Agreement Between the Europe and China on Chinese Textiles
On 7 September 2005, Europe member states agreed to allow the release of blocked Chinese apparel. The result will see the Europe taking most of the burden as 2006 quotas will remain largely untouched by the deal.

11 October 2005
October PTA CP in China
October PTA CP in China is met with resistance from the buyers. Announcements were made in the range of $880-890 CFR 90 days but buyers are insisting on $860-870.

11 October 2005
Paraxylene October ACP
Paraxylene October ACP settled at $1000 CFR.

11 October 2005
Asian paraxylene shipped to USA
A large quantity of Asian origin paraxylene is shipped to USA for November arrival post refinery shutdowns caused by Katrina and Rita.

07 October 2005
Hurricane Rita as bigger disruption for US MEG
Hurricane Rita now seen as bigger disruption for US MEG than Katrina. Total lost MEG now estimated to be 80,000 tonnes in September and 100,000 tonnes for October. Natural gas supplies seriously disrupted.

07 October 2005
October US MEG pricing
US spot prices hit $1540/tonne FOB for 500 tonne parcels and higher for tanktrucks. Large volumes arriving from Asia and Canada will partially fill needs at end of October. Average import prices for minimum 1000 tonnes volumes average $1150 per tonne for October arrival.

07 October 2005
Two US MEG producers out
At least 2 major US MEG producers expected to be out for most or all of October.

07 October 2005
US ethylene price movement
US ethylene rises 8.5 cents from July to September with 10 cent increase nominated for October.

21 September 2005
European PTA at reasonable occupacity
European PTA producers only running at reasonable occupacity as PET production is reported as sluggish even with the effect of Katrina. Little or no evidence of PTA pre-buying even though significant PTA price rises are expected in October.

21 September 2005
PX ACP nominations for October announced
PX ACP nominations for October by major producers are in the range of $1,020-1,040 CFR. Japan Energy, NPCC and Exxonmobil announced $1,020 CFR. Idemitsu nominated $1,040 CFR.

21 September 2005
Asian spot price remain stable
Asian spot price remain stable with buying ideas at $950-960 CFR, while sellers counter $970-980 CFR Taiwan, China for October and early November arrival.

13 September 2005
Hurricane Katrina knocks out 25% of
Hurricane Katrina knocks out 25% of US EO and MEG production for September pushing spot MEG over $900 CFR. Spot shortages develop in antifreeze and polyestermarkets.

13 September 2005
North American ethylene all time highs
North American ethylene values hit all time highs with 9 cent increase nominated by sellers through September. US MEG producers cut MEG to sell ethylene.

07 September 2005
Early European price indications for September
Early European price indications for September suggest that price rises will be modest reflecting PX pass through with a small margin increase.

30 August 2005
Jump of PX spot notional ideas in Asia
Following the crude blazing past $70 level, PX spot notional ideas in Asia jump to buy $860/870, sell $900 CFR October.

29 August 2005
September 2005 paraxylene ACP
NPCC and BP agreed at $890 CFR for September 2005 paraxylene ACP. This is an increase of $45 from August.

29 August 2005
YPC announced PTA August settlement at RMB 8,000
YPC announced PTA August settlement at RMB 8,000. Tentative price for September is RMB 8,200.

23 August 2005
Asian PX spot price moved up again on August 22
Asian PX spot price moved up again on August 22 to bid/offer $880/900 CFR September. PTA prices were quoted in the range of $810-820 CFR.

22 August 2005
Asia PX spot price jumped to $860-865 FOB Korea
Asia PX spot price jumped to $860-865 FOB Korea as a major end-user?s position changed from long to short position.

22 August 2005
Spot MX climbed closed to $700 FOB Korea
Spot MX climbed closed to $700 FOB Korea amid thin deals. Bid at $695 CFR Taiwan, offer at $720 CFR Taiwan.

22 August 2005
PTA prices firmed up after a long stillness
PTA prices firmed up after a long stillness. Deals reported in China at $815 CFR plus 90 days. Offer rising to $830 CFR.

04 August 2005
PTA price in China moves up
PTA price in China moves up by $5 to $775-785 range ahead of expected higher polyester operation in late August and September.

04 August 2005
PTA producer stock in southern China
PTA producer stock in southern China remains high at 20-25 days.

04 August 2005
Sinopec Beijing took over sales activities
Effective August 1st, Sinopec Beijing took over all of handle Tianjin and Luoyang?s sales activities.

03 August 2005
PTA price movement in Eruope
With PX looking to have settled up ?15 the pressure will be on PTA sellers in Europe to push up prices by ?10 to maintain current margins. Given the present state of the market this will not be easy and much rests on the current good European weather continuing.

26 July 2005
China ends export fees for 17 types of textiles
China ends export fees for 17 types of textiles. Full report can be found in our Client Acces Area > Presentation. Click here to sign in.

26 July 2005
US, China may not reach textile deal
US, China may not reach textile deal. Full report can be found in our Client Access Area > Presentation. Click here to sign in.

26 July 2005
Construction of the Russian Polief PTA plant
Further activity is reported on the construction of the Russian Polief PTA plant with an announcement of a paraxylene supply agreement and operator training to take place in China shortly.

26 July 2005
Alpek announce new PTA plant in Mexico
Alpek announce they will build a 450,000 tonnes PTA plant in Mexico to come-on stream early 2007.

19 July 2005
Power supply issues affect PES production
Power supply issues affect PES production reducing MEG consumption leading to eroding spot prices.

19 July 2005
Spot MEG markets fail to register any price upturn
Despite several major plant outages, spot MEG markets fail to register any price upturn.

19 July 2005
Spot DEG prices in Asia erode
Spot DEG prices in Asia erode as seasonal factors affect the UPR and polyols businesses - reducing demand further.

19 July 2005
US producers pursue 1.5 cent balance
US producers pursue 1.5 cent balance of 3 cent increase for MEG and DEG announced for July in August.

07 July 2005
Two major European PTA plants back on line
Two major European PTA producers? turnarounds completed and plants successfully back on line.

24 June 2005
PX closing June 24
FOB Korea July no talks. CFR Taiwan July $830-850 notional.
Buyer lowered to $830 CFR. Seller stayed $850´s.
Buy : $830 CFR Far east Asia July
Sell : $850 CFR Far east Asia July

22 June 2005
Asian PX Market - June 21
PX spot market in Asia market is very thin, sellers hold offer at $830-850 FOB Korea, $840-860 CFR Taiwan but buyers not chasing up. Buy idea $840 CFR China July, sell idea $870 CFR Taiwan/China July.

22 June 2005
Pertamina PTA unit shutdown
Pertamina PTA unit is shutdown from June 11 due to deteriorated margin. PX unit is running at 850 tonnes per day with new catalyst.

21 June 2005
Aromatics Malaysia start up has been delayed
Aromatics Malaysia´s start up has been delayed to June 30 from the original date of June 1 due to problems at sulfolane unit.

21 June 2005
June 20 PX market closing
Notional buying idea at $830 FOB Korea for July, selling idea $860-870 CFR Taiwan for July.

17 June 2005
July 2005 PX ACP nomination
July 2005 PX ACP nominated at $850 by Idemitsu. June nomination was $850 and settled at $790.

17 June 2005
China Monetary Policy highlights for Q1 2005
China Monetary Policy highlights for Q1 2005. For full report proceed to our Client Access Area ?Presentation? section.

15 June 2005
Asian MEG prices slowly move up
Asian MEG prices slowly move up as a small degree of confidence returns to downstream markets. However stocks of expensive MEG in Chinese tankage overhang the market upturn.

15 June 2005
DEG Asian prices seem to move up a little
DEG Asian prices seem to move up a little following styrene, but the poor state of the UPR markets in China and the approach of summer undermine any expectations of a sustained price recovery.

15 June 2005
West European MEG and DEG markets remain quiet
West European MEG and DEG markets remain quiet as prices slowly erode due to the lack of exports to China.

08 June 2005
M&G to build 750,000 tonnes PTA plant in Brazil
M&G announce they will build 750,000 tonnes PTA plant in Brazil by mid 2008 using Invista technology.

07 June 2005
PTA price in China is inching up in June
PTA price in China is inching up in June as polyester operation rapidly recovers. Spot ideas are in the range of $730-740 on June 7.

07 June 2005
Chinese June PTA contract price
June PTA contract price in China is nominated at $780 by major exporters.

07 June 2005
Low end-user PTA inventory
End-user PTA inventory looks to be very low due to slow buying activity in May and some buyers are looking for prompt shipments.

07 June 2005
PX buyer in Taiwan quoting $780 for July
PX buyer in Taiwan quoting $780 for July arrival against seller offer at $800 CFR and above.

01 June 2005
Continued poor PET performance in Europe
Continued poor PET performance in Europe sees PTA inventories rise putting increased pressure on prices.

30 May 2005
Asia paraxylene spot market remains weak
Asia paraxylene spot market remains weak with buyers at $730-740 CFR for June/July delivery but no selling quotation.

30 May 2005
Firm idea for PX June ACP yet to emerge
Firm idea for PX June ACP yet to emerge on the last day of May, the last day of validity.

27 May 2005
Yangzi annouced settled price in May
Yangzi annouced settled price in May, MEG RMB7000, PTA RMB7200 ($698).

24 May 2005
European PTA consumers look to significant price reductions
European PTA consumers look to significant price reductions based on recent Asian falls. With PET struggling PTA consumption is not as robust as expected.

17 May 2005
Asia MEG June CP announced
Asia MEG producers announce $800 cfr for Asia June CP following rapid decline in Asia spot prices to below $700.

17 May 2005
Asia MEG market summary
Asia spot MEG prices essentially collapse as traders sell at great losses to exit positions while spot producers seem intent on taking MEG margins to the bottom for the highest costs suppliers. China MEG demand remains more depressed as the sustained price drop only encourages further delay in buying. The market is not far from the bottom as MEG production will start to decline as margins approach zero. Prices and margins have declined by over $440 per tonnne since early March.

17 May 2005
US MEG and DEG prices
US MEG and DEG prices adjusted down in May by 5 cents reflecting lower global values but still remain much higher than Asia spot prices. Little to no increased imports have appeared.

27 April 2005
The first Iranian PTA plant of NPC runs into start-up trouble
NPC?s first Iranian PTA plant runs into more start-up trouble with reports of significant further delays.

27 April 2005
Chinese MEG imports in March 2005
Chinese MEG imports in March 2005 of 392,400 tonnes breaks all previous records.

27 April 2005
Weaknesses in Chinese market demand in April
Weaknesses in Chinese market demand in April partly due to record MEG imports.

22 April 2005
Spot MEG remains under pressure in Asia
Spot MEG remains under pressure in Asia as Chinese polyester demand remains lacklustre.

22 April 2005
Spot Asian DEG prices still continue to slip
Spot Asian DEG prices still continue to slip despite government statistics showing good economic growth.

22 April 2005
Iran?s NPC PTA plant delayed
Iran?s NPC PTA plant looks to be delayed further as reports suggest commissioning set backs.

22 April 2005
European spot paraxylene market looking for direction
European spot paraxylene market looking for direction as Asian prices tumble.

22 April 2005
Mixed xylenes markets and paraxylene pricing
Stronger mixed xylenes markets likely to put a floor under recent slides in paraxylene pricing, with spot pricing unlikely to slide much further.

12 April 2005
European PTA producers show concern
As Asian softens European PTA producers show concern that trading conditions may not be as bullish as expected given the dire state of European PET today.

08 April 2005
Hualian Sunshine new PTA plant in China successful start up
Hualian Sunshine´s new PTA plant in China successfully started up on April 2 and is operating at 50% through the first half of April.

07 April 2005
Uncertainty over downstream PES demand
Uncertainty over downstream PES demand has lead to market uncertainty on MEG and therefore flat spot prices are oscillating in a fairly wide band.

07 April 2005
DEG demand in China remains well
DEG demand in China remains well under the expected levels - it has now been about 8 months since the DEG consumption trend fell sharply.

07 April 2005
Spot PTA price in Asia continues to slide
Spot PTA price in Asia continues to slide to $850 CFR amid thin trade.

01 April 2005
Initial April MEG West European settlement
Initial April West European settlement on MEG set the scene for all involved in the market with a small increase.

01 April 2005
Asian glycol prices reflect uncertainties
Asian glycol prices reflect the uncertainties and nervousness seen over PES supply and demand, leading to price erosion.

30 March 2005
Polief sold to ZAO Selena
Polief has been sold to a Russian plastics trader, ZAO Selena, the fee is reported as $112 million.

29 March 2005
China domestic PTA price for March settled
Domestic PTA price in China for March has been settled by YPC, Xianglu and BP at RBM8,900 delivered, equivalent to US$863 CFR. Tentative price was posted at RMB9,200. Contract price for import cargo is in the range of $890-900 CFR.

29 March 2005
April China PTA contract price rolled over
April PTA contract price in China has been rolled over at $890 CFR by
Mitsubishi.

23 March 2005
MEG demand remains quiet
Demand for MEG remains quiet, spot prices slip, as PES demand falters and hesitates to pick up.

23 March 2005
Concerns grow over DEG demand
Concerns grow over DEG demand as the UPR industry in China contends with high raw material prices.

23 March 2005
2 cent MEG increase for April sought
US producers seek another 2 cent MEG increase for April as turnarounds keep stocks low.

23 March 2005
US DEG prices remain flat
US DEG prices remain flat.

23 March 2005
US EO values firms up
US EO values continue to firm up as sellers seek to raise low end numbers for April.

22 March 2005
PTA spot price in China drops
PTA spot price in China drops below the contract level. Current buying idea is $870-880 CFR for March shipment.

22 March 2005
Asia PX spot price shows signs of weakness
Asia´s PX spot price is showing signs of some weakness. April ACP nominations were announced on March 18 in the range of $970-990 CFR but actual buying idea for April delivery is at $970-980 range.

22 March 2005
March European PTA price increases
European PTA consumers are bracing themselves for substantial price increases in March on the back of paraxylene rises. Generally strong demand also suggests a margin increase is likely.

22 March 2005
Strong US mixed xylene price
Strong mixed xylene pricing in US keeps pressure on PX.

15 March 2005
DEG spot prices remain stable
DEG spot prices remain stable faced by an ongoing expensive surplus in stock and high styrene prices making UPR manufacture unprofitable.

14 March 2005
DuPontSA (UK) is now AdvanSA
DuPontSA (DuPont Sabanci Polyester (U.K.) Limited) has announced its name change on becoming wholly owned by the Sabanci Group. The new name will be AdvanSA and the change will come into effect within the next few weeks.

14 March 2005
Asia April MEG contract price announced
Major Asia MEG sellers unanimous at $1120 CFR contract for April as major turnarounds start to cut into supply.

14 March 2005
Asia April Paraxylene spot price
Asia Paraxylene spot price has not reacted to the rising crude price and is hovering around $1,000 CFR for April delivery.

14 March 2005
Asia mid-March PTA spot price
Asian PTA spot price has remain in the range of $890-895 through mid-March.

14 March 2005
Chinese polyester operation struggles to cope with prices
Polyester operation in China is showing signs of struggle to cope with the high raw material prices.

14 March 2005
European paraxylene markets drifted lower
European paraxylene markets have drifted lower in recent weeks in thin trade. Traders are waiting for an upswing in demand from Asia, which they hope will see a rebound in pricing later this month.

02 March 2005
US MEG price increase for March
US producers announce a 2 cent increase for MEG for March 1, DEG prices remain flat.

02 March 2005
China MEG imports
China MEG imports remain weak for December and Janaury at 215 and 218 respectively.

02 March 2005
Wellman announce full year losses
Wellman announce full year losses of $51 million, an improvement on 2003 (loss $107 million).

02 March 2005
European PTA solid sales for February
European PTA producers confirm solid sales for February.

04 January 2005
Chinese PTA import duty reduced, MEG unchanged
China has reduced the PTA import duty for 2005 to 6.5% from 7% in 2004. The import duty for MEG remains unchanged at 5.5%.

04 January 2005
Chinese PTA contract price for January announced
YPC and Xianglu have announced a tentative PTA contract price for January at RMB8,350 ($808 equivalent) the same as the December settlement and BP at RMB8,450 ($818 equivalent), and up RMB50 over the December settlement. Mitsubishi has nominated $820 CFR with 90 days terms.

04 January 2005
A Taiwanese PTA producer is rumored to have sold 50,000 tonnes
A Taiwanese PTA producer is rumored to have sold 50,000 tonnes to a Zhejiang polyester producer and trader at $810, presumably to reduce stocks, and maintain plant operation.

04 January 2005
The January ACP paraxylene price negotiation is still on going
The January ACP paraxylene price negotiation is still on going. A majority of paraxylene suppliers have refused to accept the settlement of $815 made between one supplier and a few major buyers and are arguing for a settlement closer to the initial nomination of $915. In the meantime, Asian spot prices have climbed to $880-900 CFR for February delivery.