Catalogue of CCFEI China Report (Monthly) Propylene Acrylic Fiber. Fiber Grade PET. Polyester Staple. Caprolactam. Nylon Filament.

Transcription

1 Issue Number 129 June 2013 Catalogue of CCFEI China Report (Monthly) Acrylic Propylene Acrylic Fiber Acrylonitrile ABS Polyester Paraxylene MEG Fiber Grade PET Polyester Staple PTA Bottle Grade PET Polyester Filament Recycled PSF Nylon Caprolactam Nylon Filament Nylon Chips Viscose Viscose Feedstock Viscose Filament Viscose Staple Spandex MDI/PTMEG Spandex

2 China Chemical & Fiber Economic Information Network June 2013 [C3] Propylene Price Trends of Propylene vs Crude Oil $/ton C3(FOB Korea) Crude oil WTI $/bbl Feb 3Mar 10Mar 17Mar 24Mar 31Mar 7Apr 14Apr 21Apr 28Apr 5May 12May 19May 26May 2Jun 9Jun 16Jun 23Jun 30Jun Asia: Propylene Market Trend in June 2013 Week 1: Asian propylene prices rose for the seventh week, with supply in South Korea becoming increasingly low. The FOB Korea and the FOB Japan markers were assessed at $1,295/mt and $1,285/mt, respectively, both up $5/mt week on week. Week 2: Asian propylene prices increased for an eighth straight week amid active trading after China's three-day holiday. The FOB Korea and the FOB Japan markers both rose $10/mt week on week to be assessed at $1,305/mt and $1,295/mt, respectively. Week 3: Asian propylene prices surpassed $1,400/mt CFR China this week to hit a near four-month high. The FOB Korea and the FOB Japan markers were assessed at $1,340/mt and $1,330/mt, respectively, both up $35/mt week on week. Week 4: Asian propylene prices rose this week on scarce supply and thin liquidity. The FOB Korea marker was assessed at $1,365/mt, up $25/mt week on week, and the FOB Japan marker rose $15/mt to $1,345/mt over the same period. The CFR China and CFR Taiwan markers both increased $15/mt week on week to $1,425/mt and $1,410/mt, respectively. Propylene values closed at $1,364-1,366/ton FOB Korea in June. Europe: In Jun, spot propylene market in NW Europe was weak across the board, and supply and demand fundamentals remained balanced. In early Jun, European spot polymer grade propylene market softened on marginally lower offers to be assessed at Eur1,017-1,022/mt FD NWE. The European polymer grade propylene market was adequately supplied in most geographies as market sources reported balanced systems so far in June. There was no acute tightness in supply, despite a lack of propylene imports and the improved performance of some derivatives, which was caused by inventory rebuilding and some ongoing propylene production disruptions. In mid Jun, The European propylene market remained well supported amid better volume offtake of key derivatives, such as polypropylene and acrylonitrile. Higher contractual volumes from polymers segments, as well as previous production shortfalls in propylene, continued to support good utilization rates of steam crackers. Meanwhile, in the Mediterranean region, there was some short-covering. However, in other European geographies, buying interest was more subdued as occasional incremental demand into polypropylene applications filtered through, according to sources. In late Jun, The July European propylene contract price fully settled at Eur1,040/mt FD NWE, a rollover from June. Spot PGP values closed at 1,018-1,023/ton CIF NWE in June. USA: H1 June: US spot refinery-grade propylene gained 2 cents/lb to be assessed at cents/lb delivered, the highest assessment since March 14 when it was assessed at 57 cents/lb delivered. Sources cited reduced refinery run rates leading to an overall tightening of RGP supply. H2 June: US spot refinery-grade propylene declined 0.25 cent, to be assessed at cents/lb delivered, as refinery operating rates improved. Spot PGP values closed at cents/lb FOB USG in June. International Propylene Monthly Price Trend Asia (FOB Korea, $/ton) Europe (CIF NWE, /ton) US (FOB, cts/lb) May Jun Jul est. May Jun Jul est. May Jun Jul est

3 China Chemical & Fiber Economic Information Network June 2013 [ACN] Acrylonitrile USD-based Weekly Spot Prices CFR FE ($/ton) Week Time Price Week 1 3 Jun-7 Jun 1,720 Week 2 10 Jun-14 Jun 1,720 Week 3 17 Jun-21 Jun 1,755 Week 4 24 Jun-28 Jun 1,775 Monthly Ave. in Jun 1,743 RMB-based Weekly Spot Prices (yuan/ton) Week Time Price Week 1 3 Jun-7 Jun 12,680 Week 2 10 Jun-14 Jun 12,700 Week 3 17 Jun-21 Jun 12,700 Week 4 24 Jun-28 Jun 12,660 Monthly Ave. in Jun 12,685 Global ACN Market Trend in June In Asia: Week 1, as talking atmosphere was insipid, Asian spot assessment stalemated at $1,719-1,721/ton CFR FE. Week 2, in Asian ACN market, demand for spots was muted, and price disparity was wide. Therefore, Asian ACN spot assessment stabilized at $1,719-1,721/ton CFR FE. Week 3, Asian ACN prices climbed by $35/ton to $1, /ton, due to increasing cost and shortened supply. Week 4, feedstock propylene prices went up, so ACN spot assessment gained $20/ton to $1,774-1,776/ton CFR FE. In Europe: Week 1, European spot ACN prices inched up by $5/ton to close the week at $1,625-1,630/ton CIF Med, because propylene price moved up. But overall demand remained muted. Week 2, spot prices extended its hike to $1,645-1,650/ton CIF Med, up by $20/ton due to strengthened buying intention, though confirmed deals were limited. Week 3, ACN supply in Europe tightened, thus price surged by $55/ton to $1,700-1,705/ton CIF Med. Week 4, in European ACN market, assessments shifted upward by $35/ton to $1,735-1,740/ton CIF Med, given decreasing supply, despite insipid trading activities. In USA: Week 1, US ACN spot assessments ticked higher by $30/ton to $1,620-1,640/ton FOB USG for some confirmed deals and increasing demand. Week 2, US assessments for spots rose $40/ton to $1,660-1,680/ton FOB USG, owing to more inquiries and gaining feedstock propylene settlements. Week 3, US ACN spot numbers extended its territory by $55/ton this week, assessed at $1,715-1,735/ton FOB USG given strengthened demand and supply shortness. Week 4, as supply was short and players expected that propylene prices will jump, spot export prices edged up by $5/ton on week to $1,720-1,740/ton FOB USG. Price Range for ACN in China in June (yuan/ton, $/ton) Lianyungang (ex-tank) East China (ex-works) NE China and Shandong (ex-works) USD-based (CFR China) Early Mid Late Early Mid Late Early Mid Late Early Mid Late 12,600-12,700 12,600-12,700 12,600-12,700 12,500-12,550 12,600-12,800 12,700-12,800 12,000-12,100 12,100-12,250 12,250-12,250 1,650-1,700 1,650-1,700 1,680-1,720 Monthly International ACN Value Trend Asia (CFR, $/ton) Europe (CIF, $/ton) USA (FOB, $/ton) May Jun Jul est. May Jun Jul est. May Jun Jul est. 1,724 1,743 1,667 1,679 1,600 1,689 2

4 Origin China Chemical & Fiber Economic Information Network June 2013 [ACN] Statistics on ACN Imports in China (ton, $/ton) Mar 2013 Apr 2013 May 2013 Imp. Vol. Imp. Val. Imp. Vol. Imp. Val. Imp. Vol. Imp. Val. Japan 5,901 1,926 6,475 2,015 6,389 1,965 S. Korea 21,699 1,977 18,064 1,911 11,881 1,799 Chinese Taiwan 16,869 1,914 9,036 1,873 9,940 1,760 USA 7,895 1,831 7,602 1,978 11,129 1,879 Turkey Brazil Russia Others 7,993 1,904 9,993 1, Total /Ave. Val. 60,357 1,926 51,170 1,931 39,339 1,839 Ave import price for ACN into China in May is $1,839/ton, down by $5/ton from $1,931/ton of Apr Ave import price in Jan-May 2013 is $1,833/ton. ACN imports in May totaled kt, shrinking by 30.07% from about kt in Apr. Capacity and Operation Status of Chinese ACN Producers during June Producer Capt. (kt/yr) Operation Remarks CNPC Jilin Chemical % No.3 & No.4 running at 85-90%, No.2 unit to restart in early Jul Shanghai Petrochemical % T/A is not on agenda. Shanghai Secco % Cut run rates a bit in late May; No.2 unit to start up in early Fushun Petrochemical 92 Idled Failing to restart in mid-june, and plan to restart in early Jul Anqing Petrochemical % New unit is running at 100%, while old unit shut down on 25 Apr for T/A and restart in mid Jul. Daqing Petrochemical % Planned T/A from 5 August for 20 days with downstream AF unit Daqing R & C % Captive use for polyacrylamide and acetonitrile production Lanzhou Petrochemical % Captive use; have taken a one-month T/A from Apr to May. Qilu Petrochemical % Already signed joint venture ACN project with Wanda and first phase is planned to be built before 2014 In Jun, overall run rate of ACN units in China inched up to 78.95% as some units were restarted. Monthly production is estimated at 93.4kt. CCFEI Comment Feedstock: In Jun, international crude oil market reached its peak at $98.44/bbl on 18 Jun due to decreasing inventory and Syria crisis. But the prices fell to $93.69/bbl on 21 Jun, and then closed at $95.5/bbl on 26 Jun, due to frail Chinese macroeconomy and strengthened US dollar. Asian propylene showed stable-to-firm performance. Prices rallied to $1,290/ton FOB Korea by 26 Jun on less supply caused by turnarounds, up by $50/ton from the beginning of Jun. Supply: In Jun, overall run rate of domestic producers went up after some units were restarted in June. Fushun Petrochemical s unit failed to restart, and planned to do it again in early July. In spot market, major traders at ports held normal inventory, but supply would increase as cargoes arrived at the end of Jun. In import market, spot transaction atmosphere was still muted. Offers for offshore cargoes were seen above $1,750/ton. Some spot deep-sea offers reached $1,650-1,680/ton CFR China. As future picture remained unclear, confirmed deals were hard to find. Total import volume in May fell by 30.07% on month to kt and the number for Jun is expected to be low. Overall, output in June returned to normal level following the restart of units. It is expected that domestic supply may increase at the beginning of July due to cargo arrivals, but an oversupply situation will still be elusive for the moment. Demand: In Jun, ACN demand didn t notably improve, as buyers purchased from hand to mouth. AF market was on a flat range-bound, and nominations for Jul and settlement for Jun went on stabilizing. ACN consumption may increase as run rate in July is expected to rise to over 90%. On ABS market, sentiment mildly ranged bound. Demand remained tenuous as consumers purchased as needed. Sellers generally concluded deals according to market prices. Majors in East China kept run rates at 70-80%, with some of their colleagues in northeast China at 40-50%. Some units were still on T/A, while inventory was low and liquidity was normal. In acrylamide market, sentiment was tenuous owing to frail demand. Thus, producers saw slow liquidity. In general, ACN demand was yet to fundamentally strengthen due to a lack of positive news on demand. However, demand may increase somewhat later as run rates of some AF unit will be ramped up in Jul. CCFEI Forecast: Domestic ACN prices were stalemated in Jun. Transaction prices for spots at East China ports hovered at 12,600-12,800 yuan/ton. Trading atmosphere was stalemated for a lack of direction on fundamentals. However, the cautious atmosphere increased at the end of June, as expectation of more supply strengthened. It is expected that sentiment will be weak in Jul, but a big dive will be hindered by cost support. 3

5 China Chemical & Fiber Economic Information Network June 2013 [AF] Acrylic Fiber 1.5D Staple Prices (yuan/ton) Week Date Prices Week 1 3Jun-7Jun 18,300 Week 2 10Jun-14Jun 18,300 Week 3 17Jun-21Jun 18,300 Week 4 24Jun-28Jun 18,300 Monthly average in Jun 18,300 Y/T Weekly Average Price Acrylic staple 1.5D Acrylic top 3D Jan 22Feb 5Apr 17May 28Jun 3D Top Prices (yuan/ton) Week Date Prices Week 1 3Jun-7Jun 19,000 Week 2 10Jun-14Jun 19,000 Week 3 17Jun-21Jun 19,000 Week 4 24Jun-28Jun 19,000 Monthly average in Jun 19,000 Y/T Monthly Average Price Acrylic staple 1.5D Acrylic top 3D Jan Feb Mar Apr May Jun Acrylic Fiber Market Sentiment in June Week 1: Domestic acrylic fiber market in China went stable this week on support of output cut and firm feedstock. Activities increased in spot market, and suppliers reported better sales. However, downstream demand was still described as less satisfactory. Offers for 1.5D staple were at 17,850-18,500 yuan/ton cash in eastern China, and 3D medium length was offered at 17,650-18,000 yuan/ton. In USD-based market, most suppliers held stable offer for June, while a few measured up offers on improved sentiment. 3D tow was offered at $ /kg CFR, L/C 90 days. Firm deals were negotiable. Week 2: Domestic acrylic fiber market was quiet this week as players were mostly away for holiday. Trading activity was thin, and the market remained stable. 1.5D staple fiber was offered at 17,850-18,500 yuan/ton cash, and 3D staple at 17,650-18,000 yuan/ton. In USD-based market, there was little improvement in trading this week on barely opened arbitrage window. In addition, buyers were reluctant to operate amid cautious sentiment. Week 3: Domestic acrylic fiber market in China held stable this week amid stable sales. While suppliers continued to run with reduced rates, buying interest remained as lusterless in spot market. Offers for 1.5D staple were at 17,850-18,500 yuan/ton cash in eastern China, and 3D medium length was offered at 17,650-18,000 yuan/ton. In USDbased market, the market muted compared with early in the month, with buyers standing sideway. 3D tow was offered at $ /kg CFR, L/C 90 days. Some downstream mills were stocking up, while traders had limited buying interest. Week 4: Domestic acrylic fiber market in China held steady this week amid stable sales. June settlements and July offers were settled flat, helping to support the market, while buyers continued to buy from hand to mouth. Offers for 1.5D staple were at 17,850-18,500 yuan/ton cash in eastern China, and 3D medium length was offered at 17,650-18,000 yuan/ton. In USD-based market, transaction was lusterless in spot market. Suppliers indicated that support was firm from costs. 3D tow was offered at $ /kg CFR, L/C 90 days, with high-end at $2.5/kg. Firm deals were sparse

6 Sinopec Jilin CF China Chemical & Fiber Economic Information Network June 2013 [AF] AF Listed Prices for Early July (yuan/ton) Producer 1.5D Staple 3D Staple High-shrinkage 3D (27%) 18,200 17,750 18,150 Shanghai (northern, Jinyang) (northern, inyang) (northern, Jinyang) Petrochem 18,150 17,750 (southern) (southern) - 5-3D Tow 17,800-18,000 (northern,jinyang) 18,150 (southern) 17,750 (southern) 3D Top Anqing PC 18,000 17,600 17,850 17,600 18,550 Qilu PC 17,700 17,500 17,650 17,550 18,500 Jilin Qifeng 18,500 18,000 18,400 18,500 19,500 JiMont 18,500 18,000 18,400 18,500 19,500 PetroChina Daqing PC 18,100 17,700 17,800 18,200 18,900 Acrylic Fiber Imports by Origin (ton) Origin Mar 2013 Apr 2013 May 2013 Jan-May 2013 Japan 8,173 8,035 7,545 35,425 Chinese Taiwan 3,316 1,464 1,314 11,886 South Korea 726 1,206 1,808 5,357 Thailand 1,567 1, ,424 Turkey 1, ,259 India ,922 Belarus 998 1, ,444 Others 1,231 1,642 1,215 10,847 Total 18,206 15,757 12,857 87,563 According to the General Administration of Customs, China imported 12,857 tons of acrylic fiber in May 2013, greatly down by 2,900 tons or 18.40% from April 2013 but up by 14.67% from 11,212 tons in May By import origin, the top three by volume in May 2013 are Japan, South Korea and Chinese Taiwan, with their respective shares at 58.69%, 14.06% and 10.22%, followed by Thailand and Portugal, at 4.61% and 4.43% respectively. In May 2013, China exported 1,185 tons of acrylic fiber, a significant increase of 782 tons, or %, from 403 tons in April Origin Acrylic Tow Imports by Origin (ton, $/ton) Apr 2013 May 2013 Jan-May 2013 Imp. Volume Imp. Price Imp. Volume Imp. Price Imp. Volume Imp. Price South Korea 368 2, ,346 2,195 2,474 Japan 396 3, ,584 4,299 3,421 Chinese Taiwan 437 2, ,007 5,556 2,739 Turkey 324 2, ,862 2,287 Others 2,320 2, ,548 12,135 2,290 Total 3,845 2,553 2,516 2,915 35,047 2,511 Acrylic Staple Imports by Origin (ton, $/ton) Origin Apr 2013 May 2013 Jan-May 2013 Imp. Volume Imp. Price Imp. Volume Imp. Price Imp. Volume Imp. Price South Korea 815 2,825 1,098 2,607 3,074 2,707 Japan 7,558 4,186 6,724 4,025 30,985 4,090 Chinese Taiwan 901 2, ,730 5,909 2,641 Thailand 853 2, ,483 3,743 2,417 Others 1,163 3,383 1,031 3,288 7,151 3,072 Total 11,290 3,779 10,139 3,618 50,861 3,572 Acrylic Top Imports by Origin (ton, $/ton) Origin Apr 2013 May 2013 Jan-May 2013 Imp. Volume Imp. Price Imp. Volume Imp. Price Imp. Volume Imp. Price South Korea 23 2, , ,900 Japan 82 4, , ,331 Chinese Taiwan 126 3, , ,245 Others 391 2, ,400 1,005 2,825 Total 621 3, ,944 1,656 3,150

7 Producer China Chemical & Fiber Economic Information Network June 2013 [AF] Operation Status of China s Acrylic Fiber Producers Capacity (kt/yr) Plant Operation Remark Shanghai Petrochemical % T/A at southern unit from 23May for 10 days. Anqing Petrochemical % Qilu Petrochemical % Zhejiang Jinyong 60 Eliminated Closed since Sep 2008 Running with one line off in June, and to resume full rate in July. Ramped down to 80% on 6 May, and to resume full rate in July. Daqing Petrochemical % T/A plans from 8 Aug for 20 days. Daqing Refining & Chemical 30 Eliminated Closed since Jan 2008 Fushun Petrochemical 55 Shutdown Shut on 7Jun 2012, with restart date pending Jilin Qifeng % T/A from 15May, restart on 27May with 4 lines, and then ramped further up in late June. JiMont % T/A from 10May to 27May, running at normal rate. Hangzhou Bay Acrylic Fiber % Shut down on 20Mar, and restarted in early April. Qinhuangdao Alight 55 Eliminated Closed since May 2008 Ningbo Zhongxin Acrylic Fibers % T/A from 2May to 18May. Domestic producers continued to operate at reduced rate in June, but the overall run rate will start to rise now that most maintenances have ended. Week 1: The average run rate of the industry was at around 80%. Week 2: The average run rate of the industry was at around 83%. Week 3: The average run rate of the industry was at around 83%. Week 4: The average run rate of the industry was at around 85%. Domestic acrylic fiber production was greatly up in June. There are fewer producers running with reduced rates in July, and the average run rate in the industry will rise to around 90%. So the total production in July will continue to increase. [Note: Domestic AF capacity totals 755 kt/yr, excluding that of the eliminated units.] Supply & Demand in China Domestic acrylic fiber market ranged bound for most of the time in June. In first half of the month, spot activity in domestic market and the import trades in USD-based market increased, supported by steady offers from producers and the growing restocking demand from the downstream. However, sales/production performance in acrylic fiber did not improve notably amid the dull season. Producers continued to operate at reduced rate with normal inventory level. Later, producers rolled over listed prices into early July, supporting market sentiment. In the meantime, several turnaround plans were made for August, which might boost restocking demand. On the other hand, sales/production remained weak due to ongoing weak trading in terminal market. Therefore, the market continued to be stable amid sluggish demand. At the moment, 1.5D staple was mostly offered steady at 17,850-18,500 yuan/ton. Production & Sales: The production in domestic AF industry in May 2013 dropped notably due to a slump in average operation rate caused by extensive turnarounds. According to statistics, China's acrylic fiber production in May totaled 46.7 kt, down by 16.91% from 56.2 kt in April 2013 and down by 12.50% from kt in May Sales were stable to firm in May amid improving sentiment. Sales of domestic producers in May 2013 reached kt, slightly up from kt in April 2013 and up by 17.09% on year from kt in May In May 2013, average sale/production ratio of China AF industry was 104.8%, a large increase from 85.71% in April Inventory: According to statistics, the inventory of the whole AF industry in China was at around kt by the end of May 2013, down by 2.28 kt from kt of April 2013 and slightly down by 3.39% from 22.4 kt of May Apparent Consumption: In May 2013, AF production in China declined greatly on month, and import volume also fell sharply. Export was limited despite a big month-on-month rise. Therefore, apparent consumption was significantly down this month. Apparent consumption in May 2013 totaled kt, down by 18.42% on month from kt in April 2013 and up by 12.14% on year from kt. (Note: Sales volume, production and inventory of Ningbo Zhongxi Acrylic Fibers were not accounted for in this section.) - 6 -

8 China Chemical & Fiber Economic Information Network June 2013 [AF] Mar 2013 Apr 2013 May 2013 Supply & Demand in China (kt) Jan-May 2013 Production Import Export Apparent Consumption Mar 2013 Apr 2013 May 2013 Supply & Demand in Japan (kt) Jan-May 2013 Production Import Export Apparent Consumption CCFEI Comment Upstream Raw Materials: Global crude oil corrected up in June amid declining inventory and crisis in Syria, and reached intra-month high of $98.44/bbl on 18 Jun. Later in the month, however, oil prices were depressed by weak economic condition in China and stronger US dollar, with NYMEX August futures hitting the bottom of $93.69/bbl on 21 Jun and ending at $95.5/bbl on 26 Jun. In domestic ACN market, prices were mostly stable amid stalemated sentiment in June. Producers pegged offers steady, and spot trades were done in the range of 12,600-12,800 yuan/ton at East China ports. The market could not move easily in either way due to the lack of clear direction. Downstream Acrylic Yarn: Domestic acrylic yarn market continued to be quiet and stable in June. Trading was thin due to a lack of support, dampening sales/production performances. Some produces were under considerable inventory pressure, noting the slow offtake. And the profit margin at producers was slim in general. In Northern Jiangsu, woolen acrylic yarn was partly offered at 23,700-23,800 yuan/ton. Despite stable cost, some producers had smaller cash flow due to thin demand and weaker macroeconomic conditions, which might dampen sales and reduce production. In July, yarn market will continue to be in dull season, and players will be mostly staying on the sidelines waiting for domestic demand to pick up. However, the outlook for macroeconomic environment remains gloomy. Supply: Turnarounds in domestic acrylic fiber market were coming to an end one after another, but the overall operation rate remained low at 80%. Inventory was at a controllable level while major producers maintained stable sales/production ratio. However, there were a few private producers that were running with relatively high inventory which needed to be reduced. In USD-based market, trading activity was quite decent in early June, but buyers were still operating with caution on weak demand, resulting in thin discussion. In May 2013, 12,857 tons of acrylic fiber was imported into China, which was greatly down by 18.40% from a month ago. The total import in June is expected to be relatively low as well. All in all, domestic producers continued to maintain stable sales/production and normal inventory by running at reduced rate. The production in July is expected to increase on rising run rate. But imports are not likely to surge on thin discussions. Demand: Domestic acrylic fiber demand was still thin in June without real boost. Buyers were more willing to stock up amid steady offers at producers and rising cost, which supported spot activity. However, downstream buying was mostly done on a need-to basis due to a lack of terminal demand. And it is not likely to see large-volume purchase for downstream restocking. Spot activity was still stable most of the time. Entering July, the market is expected to remain stable. There may be more buying at the month start, but it is not likely to last later in the month. CCFEI Comment: In June, domestic acrylic fiber market continued to be on flat range-bound. Producers had eased inventory pressure in May by extensive turnarounds, and maintained operation rate low in June in order to keep sales/production ratio at a steady level. Therefore, the overall inventory was normal at major producers. In addition, producers released June settlements and listed prices for early July stable, supporting market sentiment. There may be active buying from the downstream in early July. But on demand s side, acrylic yarn market was still quiet, and the sales/production performance at producers was weak. Therefore, raw material purchase was done just to cover immediate need, and buyers are not likely to make large-volume purchase in the short term. All in all, the operation rate at producers goes back up in July, which is expected to result in increasing supply. And sales are also likely to improve, supported by steady price trend. But the overall sales/production ratio is likely to be relatively stable in the short term. Inventory will be kept at a controllable level, with a few producers still under high pressure. There won t be considerable improvement in spot trading as players are still waiting for downstream demand to pick up Unit: kt Unit: kt Production, Sales & Stock in China Production Sales A.consumption Stock Nov Jan Feb Mar Apr May Production, Sales & Stock in Japan Production A.consumption Sales Stock Nov Jan Feb Mar Apr May - 7 -

9 China Chemical & Fiber Economic Information Network June 2013 [ABS] ABS China ABS Production Status in June 2013 (Unit: kt/yr) Producer Capacity Major Grade Stock Run Rate Remark LG Yongxing H Low 60-70% Run cut in late March Zhenjiang Chimei K, 757K Low 80% Jilin Petrochem A Low 30% 150 kt/yr capacity expansion on stream in July 2012 Low run rate at new unit, and T/A at old unit Zhenjiang GPPC 280 D180, D190 Low 80% Low run rate FCFC Ningbo A1, 12A1 Low 70-80% Closed in mid March for one-week T/A Daqing Petrochem A Low 50% Run rate down to 50% in late May Gaoqiao Petrochem , 8391 Low 60% 2 of 3 lines running in May Liaotong Petrochem ,CH510 Low 30-40% One line of 150kt/yr unit in operation Changzhou Shinho 75 AC800, AC810 Low maintenance Shut down in May 27 for maintenance, Lanzhou Petrochem Low 60% New lines in operation, old lines closed Tianjin Dagu 400 DGMJ47 Low 30-40% T/A in Apr 2012, restart on 25 Apr., 2012 In June, run rates of ABS units in East China were largely at around 70-80%, but some units remained closed. Operation rate of major units in Northeast China was low at 40-50%, with some units on turnarounds. Given the overall operation rate, it is assessed that ABS production in June stands roughly at 167,000 tons (only for reference). ABS Market Situation in June 2013 Asia: Week 1: Asian ABS was assessed up $5/mt week on week to $1,900/mt CFR China and remained flat over the same period at $1,920/mt CFR Southeast Asia as some producers reported having sold out of June cargoes and offering July at higher levels. Week 2: Asian ABS was assessed up $10/mt week on week to $1,910/mt CFR China, as offers kept increasing amid higher raw material prices. The CFR Southeast Asia price was up $5/mt week on week at$1,925/mt. The market in Northeast Asia was quiet this week with China marketplaces shut for the Dragon Boat Festival holidays. Week 3: Asian ABS rose $15/mt week on week to close at $1,925/mt CFR China and $1,940/mt CFR Southeast Asia on cost push. Feedstock styrene jumped $40/mt, closing at a four-month-high of $1,747/mt CFR China due to an outage at Jubail Chevron Philips' 770,000mt/year styrene plant in Saudi Arabia. Week 4: Asian ABS fell $10 week on week to close at $1,915/mt CFR China and $1,930/mt CFR Southeast Asia. ABS producers cut offers -- which ranged between $1,920-1,960/mt CFR China -- by $10 from last week but said market sentiment was weak amid China's credit crunch. Europe: H1 Jun: Northwest European ABS contract prices plateaued as early settlements converged on a rollover, market sources reported. Prices were assessed unchanged at Eur1,850/mt FD NWE for general purpose/natural grade product, Eur2,150/mt FD NWE for coloreds and Eur2,200/mt FD NWE for auto black material. H2 Jun: Northwest European ABS spot prices were assessed unchanged at Eur1,850/mt FD NWE for GP/natural grade, Eur2,150/mt FD NWE for coloreds and Eur2,200/mt FD NWE for high heat grade material. GP/natural grade contract settlements for large convertors were concluded in a broad range of Eur1,650-1,750/mt FD NWE, Eur1,850-1,900/mt for smaller convertors, while medium-sized convertor settlements converged around the Eur1,850/mt FD NWE mark, market sources reported. And ABS prices closed at $2,010-2,020/ton CFR NWE in Jun. The US: H1 Jun: The US ABS assessment remained unchanged at 122 cents/lb delivered rail car as demand in the market remained steady. Pricing continued to be talked in the low 120s cents/lb delivered. H2 Jun: The US ABS assessment moved up by 1 cent to 123 cents/lb delivered rail car due to firming feedstocks. And injection grade ABS closed at cents/lb (delivered, rail) in the USA in June. Apparent Demand for ABS in China (Unit: ton, $/ton) Dec Jan Feb Mar Apr May 2013 Import Volume 128, ,126 87, , , ,418 Av. Import Value 2,130 2,162 2,207 2,228 2,181 2,

10 Visit our website at CCFEI Business Coverage CCFEI Coming Forum Online Information Articles and Prices Newsletter Publications CCFEI China Report (Monthly) CCFEI Annual Report CCFEI Forums Advertisement 10th China International Polyester & Intermediates Forum Shanghai, China July 2013 Learn More! 9th China International Recycled Polyester Conference (2013) Shanghai, China September 2013 Learn More! CCFEI Annual Report (2012) PTA Caprolactam MEG PA-6 Chip BGPET Nylon Filament Polyester Filament Acrylonitrile Polyester Industrial Yarn Acrylic Fiber Polyester Staple Viscose RPET Fiber Spandex Cotton & Cotton Yarn 11th China International Polyamide & Intermediates Forum (2013) Shanghai, China 4-6 December 2013 Learn More! Disclaimer:Information contained in this report is obtained from sources believed to be reliable. However, neither responsibility nor liability will be accepted by China Chemical & Fiber Economic Information Network (CCFEI) for commercial decisions claimed to have been based on the content of the report. Copyright CCFEI All Rights Reserved Contact details Add: 7F, Building No.2, 988 Pingliang Rd., Shanghai, , China Tel: Fax: