Petrochemical Industry Market Highlights

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NEW PUBLICATION -Engineering Thermoplastics
(View a sample of the Engineering Thermoplastics Chemical Business Focus)
19 August 2008 LAUNCH Issue Number 001

• POLYAMIDE 6/66
  US polyamide polymer producers remain optimistic for the future, with good plant occupacity.
  European demand is much the same as usual, with forward demand for August depending strongly
  on the price at which polymer is available. One compounder believes that if large price increases
  are passed down the supply chain, orders will dry up in August. Asian polyamide 6 engineering
  plastics export prices continued rising in July, encouraged by rising caprolactam prices. So far
  there is no sign of weakening in buying interest and polyamide 6 producers appear to be positive
  in seeking further price increases for August shipments.
• POLYCARBONATE
  The polycarbonate market was weak in the first quarter but picked up a bit in the second. A first
  wave of price increases did not achieve much but a second wave from May to June has started to
  stick. The polycarbonate market in West Europe has held up quite well this year with growth at
  around 3%. The market in Northeast Asia is oversupplied and polycarbonate producers have cut
  back on production rates by 20-30%. In China, GP prices are steady but optical media prices have
  increased due to high feedstock costs, some product shortages and to dearer money.
• POLYACETAL
  Polyacetal producers continued pushing for price increases in all regions, with several major
  companies adding new price increase announcements on top of those already issued for July.
  Overall energy and raw material costs waned significantly during July, but the cumulative effect
  of sustained high prices was seen as the driver for the price increase efforts. Car sales in the US
  dipped sharply in July, and auto makers were scrambling to fill the void. The US economy also
  showed further signs of weakening. In Europe, car sales were predicted to fall moderately through the rest of 2008.
• PBT
  Although there have been some price increase announcements by the major producers in all regions, there is significant doubt about the acceptance of any increases by PBT purchasers, who have found it extremely difficult to pass on any cost increases to their downstream customers. The global PBT market remains balanced to soft, and European pricing seems likely to dip later in Q3 if demand weakens further. In China, July transactions were settled at prices slightly higher than in June due to the pressure of high feedstock costs, but settled volumes were relatively small.
• ABS/SAN
  US ABS prices have remained stable in the last month, in spite of further increases in global feedstock costs. ABS and SAN producers are seeing strong cost pressure, but buyers are resisting any further increase in resin prices. SABIC has a force majeure in place on ABS in the US, as does Polimeri in Europe, but with demand on the slack side this has not caused panic buying. In Asia, and particularly in China, price ideas have slipped and demand has come to an abrupt halt in second half July, causing consternation in a market that would, in a typical year, be in the midst of the year’s peak demand season.

Phenol • Acetone • Cumene
(View a sample of the Phenol • Acetone • Cumene Chemical Business Focus)
19 August 2008 Issue Number 164

• US acetone monthly contract price settles at 70c/lb in July
• Hexion to build new phenolic resins plant in Brazil
• China demand for phenol and acetone down over Olympic Games
• Phenol utilisation rates held back on lower demand
• West European phenol prices follow benzene up by Euro60/ton
• Markets generally weaker but BPA prices fairly stable

Soda • Chlorine
(View a sample of the Soda Chlorine Chemical Business Focus) 
14 August 2008 Issue Number 330

• NE W quarterly Plants & Projects Review for chlorine and caustic soda included
• KA Steel Chemicals agrees purchase of Old World Industries caustic soda business
• US sellers announce another round of caustic soda prices increases up to $130/ton
• Olympic Games in China have now started and there is some impact on production
• Shandong Binhua has started trial production of part of its new membrane capacity
• Zhejiang Juhua has now completed its 50,000 tpa caustic soda capacity expansion

Acrylonitrile • Acrylic Fibre
(View a sample of the Acrylonitrile • Acrylic Fibre Chemical Business Focus)
14 August 2008 Issue Number 340

• US propylene provisionally settled at a rollover from July
• Ammonia breaks through $800/ton fob and seems set to keep rising
• US and Asian acrylonitrile producers cut back production on weak demand
• Demand for acrylic yarns recovers in North America
• Worldwide economic situation adversely affects demand and market sentiment
• Asian ABS prices drop back dramatically as demand stalls

Methanol
(View a sample of the Methanol Chemical Business Focus)
12 August2008 Issue Number 318

• August USG contract prices rolled over at 155-158 c/gal
• Europe spot prices decrease in early August as demand wanes
• Methanol prices dip across China as business slows during Olympics
• High feedstock prices put squeeze on China’s DME production
• Methanex on schedule to restart New Zealand plant in Q3
• NYMEX crude oil prices down sharply from record high levels

Urethane Chemicals
(View a sample of the Urethane Chemicals Chemical Business Focus)
11 August 2008 Issue Number 153

• Nitric acid prices more than double in Asia since last year?
• Reduced Tarragona output contributes to PO hikes in Q3
• Plentiful availability puts BDO and PTMEG prices under downward pressure
• Prices of mainstream MDI grades go up worldwide, particularly in America
• European foamers report lower sales across the board for the first time this year
• Once again PU additives are to be significantly increased in price

Synthetic Fibres
(View a sample of the Synthetic Fibres Chemical Business Focus)
8 August 2008 Issue Number 288

• Monthly US consumer inflation hits 27 year high
• Italian hosiery manufacturers relocate to Serbia
• Demand for acrylic yarns recovers in North America
• Oversupply is a major problem for polyamide producers in China
• Polyester staple producers resume production in Taiwan
• Demand for polypropylene in West Europe remains strong

Maleic Anhydride • Acrylic Acid
(View a sample of the Maleic Anhydride • Acrylic Acid Chemical Business Focus)
4 August 2008 Issue Number 208

• Dow buying Rohm and Haas; creating leading specialty company
• MAn prices settle up in Europe for Q3, outlook remains cautious
• North America’s MAn market in talks over monthly price change
• Chinese MAn operating rates down on high costs, lower exports
• US acrylates prices up again in July; August increases announced
• North American MMA contract talks continuing well into August

Acetic Acid • Vinyl Acetate
(View a sample of the Acetic Acid • VAM Chemical Business Focus)
4 August 2008 Issue Number 251

• Demand for VAM in North America, Europe slides lower
• China acetic acid prices decrease on weaker demand
• Europe ethyl acetate supplies tighten on plant outage
• Celanese confirms starting Nanjing VAM, anhydride units
• Dow purchases Rohm and Haas to create specialty giant
• Crude oil prices hit record high $147/bbl in early July

Phthalates • Oxo Alcohols
(View a sample of the Phthalates • Oxo alcohols Chemical Business Focus) 
31 July 2008 Issue Number 319

• Further 4 cents July price increase goes on to US phthalates
• European phthalates pricing recovers some increased July/Q3 feedstock costs
• Domestic Chinese phthalates pricing falls back somewhat in July
• US 2-EH pricing takes steep monthly increases as propylene costs soar
• European 2-EH prices move up with increase in Q3 propylene contract
• Still high Asian 2-EH pricing looks to have peaked

VCM & PVC
(View a sample of the VCM & PVC Chemical Business Focus)
31 July 2008 Issue Number 335

• NE Asian spot EDC price increases to $530-540/ton cfr for August
• August spot VCM price offers increase to $870-880/ton fob US Gulf
• July VCM transactions in the range $980-1000/ton cfr for China
• In the USA, negotiations continue over a 4c/lb PVC increase for July
• In Northwest Europe PVC prices assessed Euro80/ton higher in July
• PVC price increases in Northeast Asia pull back to $1250-1270/ton cfr

Polyamide & Intermediates
(View a sample of the Polyamide & Intermediates Chemical Business Focus)
25 Jult 2008 Issue Number 339

• Crude oil prices see first fall in months
• Contract sulphur breaks through $880/ton barrier
• Asian phenol spot prices increase by $200/ton over June
• Solutia explores divestiture of its nylon business
• Worldwide demand for acrylic fibre fails to improve
• Chinese caprolactam prices rise again

Unsaturated Polyester Resin
(View a sample of the Unsaturated Polyester Resin Chemical Business Focus)
25 July 2008 Issue Number 001

• US UPR makers in new round of price increases effective 1 August
• European UPR market shows concern over slowdown, higher costs
• Fresh investments into resins looking at China and South East Asia
• Maleic and phthalic anhydride prices continue to increase in July
• Glycols prices pulled up by C2 and C3 in North America, Europe
• Dow in European styrene monomer output cuts, blames high costs

PET Packaging Resin
(View a sample of the PET Packaging Resin Chemical Business Focus)
24 July 2008  Issue Number 141

• August Asian MEG contract prices rollover to up $40/ton to $1260-1300/ton
• July paraxylene Asian contract price set at $1625/ton, up $185/ton
• Sabic to exit European paraxylene with closure of Wilton, UK plant by end 2008
• July Asian PTA stalemate - spot at $1170-1190 vs. contract target of $1285-1290/ton
• M&G to add a further 200 ktpa PET packaging resin capacity in Brazil
• Reliance prepares to make PET bottle resin in the US, on old Unifi units

Polyester & Intermediates
(View a sample of the Polyester & Intermediates Chemical Business Focus)
24 July 2008 Issue Number 339

• August Asian MEG contract prices posted at $1260-1300/ton
• European May PTA price set with full pass-through of paraxylene increases
• July Asian PTA stalemate - spot at $1170-1190 vs. contract target of $1285-1290/ton
• Polyester filament and staple plant utilisation rates continue to fall
• M&G to add a further 200 ktpa PET packaging resin capacity in Brazil
• Reliance prepares to make PET bottle resin in the US, on old Unifi units

Paraxylene
(View a sample of the Paraxylene Chemical Business Focus) 
23  July 2008 Issue Number 355

• US July mixed xylenes contract price up 28-29 cents to $4.02-4.10/gal
• July paraxylene Asian contract price set at $1625/ton, up $185/ton
• European July paraxylene contracts up Euro135/ton from June, at Euro1085/ton
• Sabic to exit European paraxylene with closure of Wilton, UK plant by end 2008
• European May PTA price set with full pass-through of paraxylene increases
• July Asian PTA stalemate - spot at $1170-1190 vs. contract target of $1285-1290/ton

Ethylene Glycol
(View a sample of the Ethylene Glycol Chemical Business Focus)
23 July 2008 Issue Number 242

• Dow cuts global EO production 25% due to economic slow-down high production costs
• European ethylene contract price for third quarter increases Euro190/ton
• Ineos buyers look for monthly European ethylene contracts from October 2008
• August Asian contract prices rollover to up $40/ton to $1260-1300/ton
• Diolen Industrial Fibers asks for suspension of payments in Netherlands/Germany
• July ethylene price increase of 15c/lb announced in US; 5-8c/lb for June

Orthoxylene • Phthalic Anhydride
(View a sample of the OX•PA Chemical Business Focus)
17 July 2008 Issue Number 355

• Spot MX pricing in US continues to rise above July contract levels
• US July OX contract moves up 5 cents to 64.5 c/lb
• Further Euro60/ton increase broadly agreed in late European July OX contract settlement
• US phthalic pricing continues to move up with higher OX contracts
• European producers attempt to pass on OX cost increases to any spot phthalic sales
• Fall back noted in domestic Chinese phthalic pricing