americas polymer spot price assessments

New Recycled PolymeR

daily assessmeNts

Volume 43 / Issue 30 / July 29, 2020

Now online at pmc.platts.com

POLYMERSCAN

www.platts.com

CONTENTS

PolymersPolyvinyl Chloride 4Low Density Polyethylene 6Linear Low Density Polyethylene 8High-Density Polyethylene 10Polypropylene 14Polystyrene 17Acrylonitrile Butadiene Styrene 19Polyethylene Terephthalate 20

Polymer Feedstocks: OlefinsEthylene 24Ethylene Glycol 25Propylene 26Butadiene 28

Polymer Feedstocks: AromaticsParaxylene 30Styrene 31

Polymer Feedstocks: IntermediatesPurified Terephthalic Acid 33Acrylonitrile 34Ethylene Dichloride, Vinyl Chloride Monomer 35Methyl Methacrylate 37

Hydrogen 40

ASIAN POLYMER SPOT PRICE ASSESSMENTS

CFR FE Asia CFR SE Asia CFR China ($/mt) ($/mt) South Asia Domestic ($/mt) (Yuan/mt)

PVC SUSP 819-821 819-821 859-861 ^6890-6910 ^^6590-6610

LDPE G-P 949-951 969-971 — 8580-8620LLDPE (Butene) 814-816 859-861 869-871 7180-7220LLDPE (C6 metallocene) 959-961 989-991 999-1001

HDPE Inj 809-811 829-831 879-881 — Bmldg 859-861 909-911 919-921 — Film 909-911 929-931 919-921 8130-8170 Yarn 879-881 879-881 — —

PP Raffia 904-906 919-921 949-951 7705-7745PP Injection 904-906 919-921 949-951 — Fiber — — Copol 944-946 959-961 989-991 — IPP Film 914-916 924-926 959-961 — BOPP 919-921 939-941 974-976 —

PS G-P 929-931 939-941 — — HIPS 1029-1031 1034-1036 — —EPS G-P 889-891*EPS F-R 939-941*ABS Inj 1359-1361 1369-1371 — —

PET bottle grade 674-676 * 659-661 ** — —

Polyester POY150D/48F — — — 4995.00Polyester DTY150D/48F — — — 6420.00Polyester FDY150D/96F — — — 5565.00Polyester PSF 1.4D*38mm — — — 5352.00

Notes: Asian PVC, PS, ABS and C6 mLLDPE, FE Asia refers to China. All Asian polymer assessments are basis L/C 0-30 days Credit differentials calculated using 1 month LIBOR +1.5%. ^Denotes ethylene-based production. ^^Denotes carbide-based production. EPS F-R refers to fire retardant grade. *Denotes FOB North East Asia (South Korea, China, Japan) **Denotes FOB Southeast Asia (Thailand, Indonesia , Vietnam, Malaysia).

AMERICAS POLYMER SPOT PRICE ASSESSMENTS

FAS Houston US Contract US Domestic FOT Brazil* CFR Brazil CFR WC South America ($/mt) dlvd railcar ($/mt) ($/mt) ($/mt) ($/mt) (cts/lb)

PVC SUSP 770-780 49.00-51.00 1080.25 -1124.35 — 885-895 855-865

LDPE G-P 992-1014 64.50-65.50 1421.97 -1444.01 990-1010 1060-1080 1105-1115LLDPE (Butene) 794-816 52.50-53.50 1157.42 -1179.46 750-770 850-870 895-905LLDPE C6 816 -838 — — — — —LLDPE metallocene 860 -882 — — — — —

HDPE Inj 783-805 56.00-57.00 1234.58 -1256.62 800-820 890-910 925-935 Bmldg 827-849 53.00-54.00 1168.44 -1190.48 790-810 930-950 965-975 Film 893-915 58.00-59.00 1278.67 -1300.71 810-830 970-990 1015-1025 Yarn — — —

PP Homo Inj 948-970 44.00-45.00 970.02 -992.07 970-990 1040-1060 995-1005 Fiber — 46.00-47.00 1014.12 -1036.16 — — — Copol 992-1014 — 990-1010 1060-1080 1075-1085

PS G-P 1025-1047 67.50-68.50 1488.11 -1510.15 — HIPS 1091-1113 75.50-76.50 1664.47 -1686.52 —ABS Inj — 77.00-78.00 1697.54 -1719.59 —

PET bottle grade 948-970 # 970-992 ##

Notes: All price assessments reflect spot trades with the exception of US Contract Delivered railcar. *FOT Brazil assessments are for export material via truck to MERCOSUR markets. West coast South America includes major ports in Chile, Peru, Colombia and Ecuador. #US PET bottle grade refers to DDP US West Coast. ##US PET contract price is in $/mt.

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July 29, 2020POlyMERSCAN

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DAILY POLYMER SPOT PRICE ASSESSMENTS Thursday Friday Monday Tuesday Wednesday Average

CFR FE Asia ($/mt)

LDPE 979-981 959-961 959-961 949-951 949-951 959.00-961.00LLDPE 859-861 839-841 839-841 814-816 814-816 833.00-835.00HDPE Film 939-941 919-921 919-921 909-911 909-911 919.00-921.00PP Raffia 899-901 899-901 899-901 899-901 904-906 900.00-902.00PP Injection 899-901 899-901 899-901 899-901 904-906 900.00-902.00MMA* 1216.00 1223.00 1223.00 1223.00 1228.00 1222.600

FD NWE (Eur/mt)

LDPE 948-952 948-952 948-952 948-952 948-952 948.00-952.00LLDPE 868-872 868-872 868-872 868-872 868-872 868.00-872.00HDPE Injection NA-NA NA-NA NA-NA NA-NA 888-892 890.000HDPE Blmldg NA-NA NA-NA NA-NA NA-NA 898-902 900.000HDPE Film NA-NA NA-NA NA-NA NA-NA 888-892 890.000PP Homo 868-872 868-872 868-872 868-872 868-872 868.00-872.00

FCA Antwerp (Eur/mt)

LDPE 928-932 928-932 928-932 928-932 928-932 928.00-932.00LLDPE 848-852 848-852 848-852 848-852 848-852 848.00-852.00HDPE Injection NA-NA NA-NA NA-NA NA-NA 868-872 870.000HDPE Blmldg NA-NA NA-NA NA-NA NA-NA 878-882 880.000HDPE Film NA-NA NA-NA NA-NA NA-NA 868-872 870.000PP Homo 848-852 848-852 848-852 848-852 848-852 848.00-852.00

CFR Turkey ($/mt)

PP Fiber 970.00 970.00 970.00 970.00 970.00 970.00

FAS Houston ($/mt)

LDPE 981-1003 981-1003 981-1003 981-1003 992-1014 983.20-1005.20LLDPE 783-805 783-805 783-805 783-805 794-816 785.20-807.20HDPE Blmldg 827-849 827-849 827-849 827-849 827-849 827.00-849.00PP Homo 948-970 948-970 948-970 948-970 948-970 948.00-970.00

FOB Middle East Netbacks ($/mt)

LDPE 971-973 951-953 951-953 941-943 941-943 951.00-953.00LLDPE 851-853 831-833 831-833 806-808 806-808 825.00-827.00HDPE 931-933 911-913 911-913 901-903 901-903 911.00-913.00PP Raffia 891-893 891-893 891-893 891-893 896-898 892.00-894.00PP Injection 891-893 891-893 891-893 891-893 896-898 892.00-894.00

*Refers to CFR China

Notes: The weekly average represents the average of Thursday last week through Wednesday of the current week. FOB Middle East netback denotes CFR Far East Asia assessments minus the prevailing container freight rate from Al-Jubail to Shanghai for a standard 20-foot container.

DAILY RECYCLED POLYMER SPOT PRICE ASSESSMENTS Thursday Friday Monday Tuesday Wednesday Average

Recycled PET

Europe

Post-consumer bottle bales FD NWE (Eur/mt)* 410.00 410.00 410.00 410.00 400.00 408.000

Clear flakes FD NWE (Eur/mt) 800.00 800.00 800.00 800.00 800.00 800.000Clear flakes FD UK (Eur/mt) 803.00 802.00 800.00 806.00 805.00 803.200Clear flakes FD UK (GBP/mt) 730.00 730.00 730.00 730.00 730.00 730.000

Mixed colored flakes FD NWE (Eur/mt) 670.00 670.00 670.00 670.00 670.00 670.000Mixed colored flakes FD UK (Eur/mt) 676.00 676.00 674.00 679.00 678.00 676.600Mixed colored flakes FD UK (GBP/mt) 615.00 615.00 615.00 615.00 615.00 615.000

Food-grade pellets FD NWE (Eur/mt) 1290.00 1290.00 1290.00 1290.00 1290.00 1290.000Food-grade pellets FD UK (Eur/mt) 1276.00 1275.00 1271.00 1280.00 1279.00 1276.200Food-grade pellets FD UK (GBP/mt) 1160.00 1160.00 1160.00 1160.00 1160.00 1160.000

Americas

Post-consumer bales premium grade FOB LA (¢/lb) 9.00 9.00 9.00 9.00 9.00 9.000Post-consumer bales standard grade FOB LA (¢/lb) 3.25 3.25 3.25 3.25 2.75 3.250Post-consumer bales standard grade 6.50 6.50 6.50 6.50 6.50 6.800 FOB Chicago (¢/lb)Clear flakes FOB LA (¢/lb) 34.00 34.00 34.00 34.00 34.00 34.000

Asia

Clear flakes FOB SE Asia ($/mt) 640.00 640.00 640.00 640.00 630.00 638.000

Recycled Polyolefins

Europe

Post-consumer mixed HDPE bales FD NWE (Eur/mt)* 180.00 180.00 180.00 180.00 180.00 180.000R-HDPE light pellets FD NWE (Eur/mt) 950.00 950.00 950.00 950.00 950.00 950.000

*Excludes France

Note: The weekly average represents the average of Thursday last week through Wednesday of the current week.

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EURO CONTRACT ASSESSMENTS (Eur/mt) Germany Holland Italy France Spain FD UK FD NWE CP* (GBP/mt) ($/mt)PVC susp Gross 843-847 843-847 853-857 843-847 833-837 762-766 993-997PVC susp Net 818-822 818-822 828-832 818-822 808-812 740-744 —

LDPE G-P 1218-1222 1218-1222 1218-1222 1218-1222 1218-1222 1102-1106 1434-1438LLDPE C4 (Blown film) 1123-1127 1123-1127 1123-1127 1123-1127 1123-1127 1016-1020 1322-1326LLDPE C4 (Cast stretch film) 1123-1127 1123-1127 1123-1127 1123-1127 1123-1127 1016-1020 1322-1326LLDPE C6 (Blown film) 1168-1172 — — — — — 1375-1380LLDPE C6 (Cast stretch film) 1168-1172 — — — — — 1375-1380

HDPE Inj 1138-1142 1138-1142 1138-1142 1138-1142 1138-1142 1029-1033 1340-1344HDPE Bmldg 1148-1152 1148-1152 1148-1152 1148-1152 1148-1152 1038-1042 1352-1356HDPE Film 1158-1162 1158-1162 1158-1162 1158-1162 1158-1162 1047-1051 1364-1368HDPE HMW 2-5 1168-1172 1168-1172 1168-1172 1168-1172 1168-1172 1056-1060 1375-1379HDPE HMW 5-10 1163-1167 1163-1167 1163-1167 1163-1167 1163-1167 1052-1056 1370-1374

PP Homo Inj 1123-1127 1123-1127 1113-1117 1123-1127 1113-1117 1016-1020 1322-1326PP Copol 1168-1172 1168-1172 1158-1162 1168-1172 1158-1162 1056-1060 1375-1379

GPPS Net 1033-1037 1033-1037 1033-1037 1033-1037 1033-1037 934-938 1217-1221HIPS Net 1133-1137 1133-1137 1133-1137 1133-1137 1133-1137 1025-1029 1334-1338EPS 1343-1347 1343-1347 1343-1347 1343-1347 1343-1347 1215-1219 1581-1585

ABS GP/Nat 1383-1387 — 1383-1387 1383-1387 1383-1387 1251-1255 1629-1633ABS Ave color 1513-1517 — 1513-1517 1513-1517 1513-1517 1369-1373 1782-1786ABS Auto black 1653-1657 — 1653-1657 1653-1657 1653-1657 1495-1499 —-

PET bottle grade 797-801 — 797-801 797-801 797-801 698-702 —PET bottle grade — — — — — 772-776## —PET bottle grade Net 738-742 — — — — 678-682 869-874PET bottle grade Net — — — — — 750-754## —APET film grade 787-791 — — — — — —APET film grade Net 728-732 — — — — — —

Notes: *FD NWE CONTRACT PRICE denotes FD Germany converted into US dollars. ##PET bottle grade assessments basis FD UK are in Eur/mt. PET assessments refer to regular business at prices negotiated between buyers and sellers on a monthly basis.

PLATTS EUROPEAN AND AFRICAN POLYMER SPOT PRICE ASSESSMENTS FOB NWE FD NWE FCA Antwerp CFR Russia* CFR Turkey** CFR North Africa FD UK CFR West Africa

($/mt) (Eur/mt) (Eur/mt) (Eur/mt) ($/mt) ($/mt) (GBP/mt) ($/mt)PVC SUSP 798-802 718-722 — 690-694 828-832 — — — ($/mt) — — — 813-817 — — — —

LDPE G-P 1016-1020 948-952 928-932 898-902 948-952 998-1002 — 1038-1042LLDPE (Butene) — 868-872 848-852 818-822 818-822 818-822 — 918-922LLDPE C6 — 908-912 — — — — — —LLDPE metallocene — 1048-1052 — — — — — —

HDPE Inj 975-979 888-892 868-872 838-842 828-832 898-902 — 918-922 Bmldg 987-991 898-902 878-882 848-852 838-842 898-902 — 918-922 Film 975-979 888-892 868-872 838-842 838-842 898-902 — 938-942Recycled HDPE light pellets — 950 — — — — — —

PP Homo Inj 952-956 868-872 848-852 783-787 928-932 928-932 — 968-972PP Raffia — — — — 908-912 908-912 — 968-972PP Copol 999-1003 908-912 888-892 823-827 998-1002 988-992 — 1028-1032PP Fiber — — — — 970 — — —

PS G-P 1046-1050 948-952 — — 1018-1022 1028-1032 — — HIPS 1140-1144 1028-1032 — — 1068-1072 1078-1082 — — EPS 1187-1191 1068-1072 — — 1068-1072 — — —ABS GP/Nat 1448-1452*** 1283-1287 — — — — — —

PET bottle grade — 738-742 — — — — 678-682 —PET bottle grade — — — — — — 750-754# —Post-consumer PET bottle bale — 400 — — — — — —Recycled PET flakes — 798-802 — — — — 728-732 —Recycled PET flakes — — — — — — 803-807# —Recycled PET FGP — 1290 — — — — 1160 —Recycled PET FGP — — — — — — 1279# —

Notes: FOB NWE prices are based on exports of 300mt or more. *CFR Russia denotes CFR St Petersburg; **CFR Turkey denotes CFR Istanbul; ***ABS GP/Nat denotes CFR NWE in $/mt. #PET bottle grade and Recycled PET assessments for FD UK are in Eur/mt. Recycled PET flake assessments are for hot wash flake without food approval. Recycled PET FGP assessments are for food grade pellets.



POLYVINYL CHLORIDE

European and Turkish PVC: FD NWE price rises Eur10/mt on tight supply, rising demand�� Producers' stocks remain low�� Planned maintenances in August, September

In the European PVC market, sources pointed to a continued strong market on the back of lower producer stocks and upticks in demand, as the market awaits the monomer's August CP settlement.

FD NWE spot prices for PVC were assessed on July 29 higher by Eur10/mt at Eur720/mt, with the trading value heard within a wide range of Eur710-760/mt.

"We are sold out. We started the month with a forecast of 85% of normal level, then July and August problems at some producers, plus the rise in demand," one producer said. "Also, exports were committed and stocks kept low. We are running full, and still cannot cope with higher demand," he added.

A few producers with plants in Germany, France and Poland were heard having issues or running out of stocks, whereas the market saw an uptick in end-user demand, sources said. This was linked to a higher pace of building and home renovation activities, compared to the lockdown months. Also, an uncertainty regarding a second wave of coronavirus later in the year could have stimulated customer activity, sources said.

"Demand is quite good. [We] expect [that] in August, even if some counties will go on holidays, demand will be still fine," one consumer source said. "Regarding availability, in July we heard of few issues. And a planned maintenance will take place in August [within Eastern Europe]", he added. Another round of maintenances was heard beginning in September.

Meanwhile, European producers were heard to have shifted much of the volume away from exports for the time being, while stocks kept low, and meeting domestic demand remained a priority.

In the key export market Turkey, several sources said it was quiet, partially due to the upcoming Kurban Bayrami holiday as well as the wait for fresh August offers from the EU. Limited activity and stable prices were heard in July, with the CFR Turkey marker hovering around $820-$840/mt, according to sources. "The market is too slow due to Sacrifice holiday. Almost everybody went to holiday, will end next Tuesday," one source said.

Platts European and Turkish PVC Weekly RationaleS&P Global Platts assessed European PVC spot prices up Eur10/mt

on the week at Eur720/mt FD NWE July 29, the most repeated value within a range heard at Eur710-760/mt.

CFR Turkey spot prices were assessed stable on the week at $830/mt, within a $820-$850/mt range heard and reflecting the feedback of an unchanged market.

European PVC net contract prices for July were assessed at Eur820/mt FD Germany, stable on the week and up Eur45/mt from the end of June, close to an indication heard this week of a Eur42/mt increase and within the Eur35-55/mt range of increases heard throughout the month.

POLYMERS

SUBSCRIBER NOTES

S&P Global Platts to postpone global hydrogen consolidationS&P Global Platts will postpone the consolidation of its hydrogen assessments into a new Market Data category due to unforeseen publishing concerns.A new date for the consolidation is under review.The North American and Japan hydrogen assessments currently exist in the ES and GD Market Data categories, and are duplicates. The Netherlands hydrogen assessments currently exist in the EG Market Data category.Platts is planning to discontinue the hydrogen symbols currently in the ES category, and move the hydrogen symbols currently in the GD category into a new HY Market Data category. The Netherlands hydrogen assessments will also move, from the EG category into the new HY category.The changes will not affect the hydrogen assessments that currently publish in Platts publications.Please send any comments to [email protected] and [email protected]. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.To speak with client services, please contact [email protected].

(continued on page 38)

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800

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29-Jul 01-Jul 03-Jun 06-May 08-Apr 11-Mar

GLOBAL PVC PRICESCFR FE Asia ($/mt) FD NWE (€/mt) FAS Houston ($/mt)

Polymer SPot Freight rateS ex-middle eaSt ($/mt)From: Middle East Middle EastTo: 25-100 mt >100mtEast China 9-13 6-10South China 10-14 8-12India 16-20 13-17Southeast Asia 18-22 13-17NW Europe 81-85 77-81Turkey 55-59 48-52US Gulf 63-67 58-62Latin America 68-72 63-67

Notes: Please refer to the methodology guide for details on port locations.

METALSAluminum US Jul 27 cts/lb 86.864Tin US Jul 27 cts/lb 834

FOREIGN ExCHANGE€1 to $1.1773 £1 to €1.1022



FOB NWE prices for PVC were assessed flat on the week at $800/mt, in line with stability in the Turkish and Asian markets.

US PVC: August export PVC up $25/mt�� Tight supply boosts August export pricing�� Domestic demand seen strong

US export polyvinyl chloride prices rose $25/mt on the week July 29, reflecting fresh August deals for limited spot volumes.

Prices were assessed at $770-$780/mt FAS Houston. Some deals for small cargoes were heard done at $790/mt FAS, but the bulk of spot business was concluded at the low end of the assessed range.

"The price trend is bullish due to lack of quantity," a market source said.

The assessed level represents the price traders pay producers. It does not reflect the trader-to-customer price, which includes other costs, such as freight and insurance.

Formosa Plastics USA's turnaround at its 513,000 mt/year PVC plant in Baton Rouge, Louisiana, was wrapping up the week of July 27, according to a source familiar with company operations. An upstream vinyl chloride monomer line at Westlake Chemical's Lake Charles, Louisiana, complex also remained shut. Both of those issues helped reduce available spot export volumes.

The latest data from the American Chemistry Council released July 27 showed North American PVC production rose 10% month on month in June, reflecting a continued rebound in output to meet strong demand after widespread coronavirus pandemic-related economic shocks and shutdowns in April, final data released July 28 by the American Chemistry Council showed.

June's total production was at 1.32 billion lb, up from 1.2 billion lb in May.

The ACC also released inventory data that showed a 47% slide in PVC stocks in the second quarter to 337 million lb, compared to 639 million lb in the January-March period, before producers cut rates in April when pandemic-related shutdowns crushed demand.

Rates largely remained reduced, with upstream US chlor-alkali rates falling to 72% in June from 75% in May, according to industry statistics.

On the domestic front, negotiations for a 3 cents/lb price increase for domestic material were expected to conclude by the end of July, so US PVC prices were assessed flat on the week July 28 at 49-51 cents/lb. Market sources expected 2 cents/lb of the increase to be accepted.

Formosa Plastics has hiked its 3 cents/lb price increase announced for August by a penny to 4 cents/lb, multiple market sources said. The company did not respond to a request for comment.

The other three US PVC producers - OxyChem, Shintech and Westlake Chemical - had not announced similar hikes to their 3 cents/lb price inrreases for August.

Producers have said domestic demand was seen strong, and quarterly results from US homebuilders have bolstered that view.

DR Horton's net sales orders surged by more than 50% year on year in May and June as states reopened form widespread coronavirus pandemic-related shutdowns in April, reflecting pent-up demand and low mortgage rates, company executives said during their fiscal third quarter earnings call on July 28.

CEO David Auld said net sales orders in April during the height of shutdowns, were 1% lower than year-ago levels. However, as shutdowns eased in May and June, he said the company's sales "increased significantly" while cancellations returned to normal levels. Cancellations were seen at 22%, up from 20% in the year-ago quarter.

KB Home, another top US homebuilder, saw similar optimism. CEO Jeffrey Metzger said during the company's second-quarter earnings call on July 24 that KB Home had resumed land development and increased land acquisitions during the second quarter after halting those activities during the height of the shutdowns.

US housing starts reached 1.186 million, up 17.3% from May, but 4% lower than 1.235 million in June 2019, according to US Census Bureau data released July 17. US housing completions in June reached 1.225 million, up 4.3% from 1.174 million in May, but 5.1% under 1.166 million in June 2019.

In Asia, PVC prices were assessed unchanged on July 28 from the prior week at $820/mt CFR China and CFR Southeast Asia, and $860/mt CFR India.

Platts US PVC Weekly RationaleUS export PVC prices were assessed up $25/mt on the week July 28 at $770-$780/mt FAS Houston, reflecting deals done for August volumes amid tight supply.

US PVC prices were assessed flat week on week July 28 at 49-51 cents/lb delivered as negotiations regarding a 3 cents/lb price increase announced by all four producers continued.

Asian PVC: Stable amid firmer sentiment, limited activity�� Sep offers to be increased $20-30/mt on month�� China imports record PVC from India in June

Asian PVC was stable week on week on July 29 amid firmer sentiment.Trading activities were limited in the week of July 26 as most

August business has been concluded.Some trading sources said only a handful of smaller cargoes that

were traded this week in India, while no deals were heard on a CFR China basis.

Some offers were heard from the US to India at around $740-750/mt FAS Houston or $840-850/mt CFR India. Market sources said prices from the US are not particularly attractive for buyers as the US offers are almost the same price with Asian origin materials.

"Such high offers from US indicate that prices should go up, (and) there is supply tightness in the longer term," the source said.

Looking forward, market sources said fresh offers for September would be increased by $20-$30/mt from August, reflecting tight supplies globally.

Asian producers also said some buyers in Africa and Middle East are looking for spot supplies from Asia due to scarce spot availability from Europe and the US.

In local India market, domestic PVC prices inched up this week to 79 rupees/kg in Delhi from 78 rupees/kg a week ago, as local supplies remained tight due to fewer orders placed in May-Jun amid concerns



over demand during the coronavirus pandemic. Deferment of import cargoes from Asian suppliers added to the supply tightness.

Traders said though monsoon season usually sees a drop in construction activity, local prices are likely to remain firm in the coming weeks, as international prices are seen rising.

In statistics news, China imported a record-high 27,207 mt of PVC from India in June — more than five times compared to 5,174 mt recorded in May — as India accelerated PVC exports amid pandemic-related nationwide lockdown, the latest statistics data showed. China's total PVC imports in June stood at stood at a record-high of 172,941 mt, up from 92,254 mt in May, according to the latest statistics.

In plant news, Pakistan's Engro Polymer and Chemicals has delayed the startup of its new 100,000 mt/year PVC capacity at Port Qasim to the fourth quarter of 2020 from the second quarter, amid the coronavirus pandemic, sources close to the matter said in the week ended July 24.

China's Xinjiang Jinhui Taofeng plans to start up its new 500,000 mt/year PVC plant early next year. Some market sources said the startup was originally planned later this year, but has been delayed due to the coronavirus pandemic.

Platts Asian PVC Weekly RationaleSpot prices were stable week on week on July 29 after August business was concluded.

CFR China PVC price was assessed at $820/mt, while CFR Southeast Asia at $820/mt, as no fresh price discussions were heard.

CFR India PVC price was also assessed unchanged week on week at $860/mt on July 29, with the latest deal was heard at $850-$860/mt CFR India.

Latin American PVC: Markets sees small hike on week�� Brazilian market sees $10/mt increase again�� WCSA sees $20/mt hike from US pressure

Spot import PVC prices in key Latin American markets were assessed up $20-$10/mt week on week on July 29 in the West Coast of South America and in Brazil, respectively, reflecting pressure from the US and higher prices from Asia and Europe.

On the Pacific coast of South America, PVC prices were assessed at $855-$865/mt CFR WCSA, up $20/mt week on week, being most related to US offers.

“Market is with low availability for PVC, and whatever is available is for loading at the end of August,” a market source said.

“US supply is tight and causing price increase and some customer already is accepting the price $870/mt,” a US trader said regarding the WCSA.

US export PVC prices were assessed up $25/mt on the week July 28 at $770-$780/mt FAS Houston, reflecting deals done for August volumes amid tight supply.

A Brazilian trader he closed a deal at $890/mt for 500 mt for k65 grade, and at $950/mt for 250 mt for K61 resin. “If I had more product available to sell, I would,” the source said.

In Brazil, prices were assessed up $10/mt at $885-$895/mt CFR Brazil, based on pricing indications. US origin material to Brazil is very limited due to the anti-dumping duty, while the market relies more on

European and Asian material, and Latin American products. Most of the offers considered for Brazil come from Europe and Asia.

Another Brazilian trader said they were sold out of material and were expecting more availability to access the market. “Last week we sold at much lower values than reported this week, but we are sold out. The new availability will be with higher values, I don’t know if $10, $20, $30, $40…,” the source said.

“The point is it cannot be much higher as it’d be higher than the domestic prices,” the trader said, adding there’s much market talk but limited product available for business.

Another US trader reported a closed deal at $940/mt for Brazil. It was the highest value reported during the week.

European spot prices were assessed up Eur10/mt on the week at Eur720/mt FD NWE July 29, the most repeated value within a range heard at Eur710-760/mt.

An Asian trader said even prices going up; market was not willing to accept much higher values during the week.

CFR China PVC price was assessed at $820/mt, while CFR Southeast Asia at $820/mt, as no fresh price discussions were heard. CFR India PVC price was also assessed unchanged week on week at $860/mt on July 29, with the latest deal was heard at $850-$860/mt CFR India.

Brazilian traders said the material was mostly available from Taiwan, Europe, Mexico and Argentina instead of the US.

Latin American PVC Weekly RationaleCFR WCSA: Spot import PVC prices were assessed July 29 up $20/mt on the week at $855-$865/mt CFR WCSA based on pricing indications in that range.

CFR Brazil: Spot import PVC prices were assessed July 29 up $10/mt week on week at $885-$895/mt CFR Brazil, based on pricing indications in that range.

LOW DENSITY POLYETHYLENE

European LDPE: Prices stable as seasonal lull drags into August�� July margin pass-through achieved�� July naphtha rise could lead to further rise in PE costs

Although European LDPE-grade July contracts broadly settled at a margin pass-through, or at least at a Eur84 increase, LLDPE- and HDPE-grade contracts saw margin erosion for the first time this year, with contracts in non-LD grades settling at no more than a Eur70/mt increase, according to both converters and producers.

Market participants pointed to conflicting market sentiment on the grades with both demand and supply factors keeping LDPE more balanced, despite the seasonal fall in demand that tends to occur in summer. Although there was some pushback, it is expected that the LDPE supply tightness prevalent would remain through August, keeping prices stable.

In addition, the supply tightness is likely to be supported by still strengthening Asian prices, which kept any limited US or Middle Eastern exports from heading to Europe.



Market sources pointed toward the expectation that August could see a further rise in costs, which could compress margins further in August. The average CIF NWE July naphtha spot prices rose to $383.63/mt, up 12% from the June average, according to S&P Global Platts data for July 28.

Asian low-density polyethylene prices rose on July 29 despite lower crude values and lackluster demand. September ICE Brent crude was down 28 cents/b from July 22 at $43.69/b at 4:30 pm Singapore time (0830 GMT) on July 29. In Vietnam, demand was low as a second virus outbreak broke out after nearly 99 days of no cases, sources said. In plant news, Sasol expects to bring its new 420,000 mt/year low density polyethylene plant in Louisiana online by the end of October, a month later than earlier planned, according to a notice posted on the company's website.

Platts European LDPE Weekly RationaleS&P Global Platts assessed low-density polyethylene spot prices at

Eur950/mt FD NWE July 29, unchanged on the day and on the week, in a quiet trading period, within a Eur910-970/mt range of indications.

LDPE July gross contract prices were assessed at Eur1,220/mt FD Germany, up Eur15/mt on the week and up Eur85/mt from the end of June, at the top end of contract settlements heard from a converter at Eur1,215-1,220/mt, and in line with settlements heard earlier in July at a monthly increase of Eur85/mt, or at a monomer pass-through. The assessment also took into consideration tighter fundamentals for LDPE compared to other PE grades.

US LDPE: Prices increase as market tightens�� June production down 1.1% from May�� Sasol delays Louisiana LDPE unit startup by a month

US low density polyethylene spot prices increased on the week July 29 as the grade remains firm.

S&P Global Platts assessed US LDPE $11 higher on the week at $992-$1014/mt (45-46 cents/lb) FAS Houston with railcar pricing talked at 42-43 cents/lb range by sources.

The FAS assessment includes an additional 3 cents/lb to cover packaging and transportation costs.

There’s continuing tightness in the market as well as production issues, one market trader said.

“There’s better domestic demand and basically lack of new spot availability,” the source added.

Meanwhile, Sasol expects to bring its new 420,000 mt/year low density polyethylene plant in Louisiana online by the end of October, a month later than last planned, according to a notice posted on the company's website on July 23.

"Some challenges were experienced in the completion of the restoration process, resulting in a slight delay to the previous market guidance" of September, the notice said.

The plant was expected to start up by late 2019, but was damaged by a fire during commissioning in January. Sasol then pushed the startup to September and on July 23 to October.

The notice also said Sasol's Lake Charles, Louisiana, project was 99% complete at a cost of $12.7 billion, up from an original estimate of $9 billion.

The overall project includes a new 1.5 million mt/year cracker, a 470,000 mt/year linear low density PE plant, two alcohol units and a 380,000 mt/year ethylene glycol/monoethylene glycol unit.

Separately, North American LDPE domestic sales increased 9.9% in June compared to the year-ago month, according to final data released July 24 by the American Chemistry Council.

Domestic sales in June were about 426.7 million lb, down 1.1% from 431.489 million lb in the previous month and up from 338.168 million lb from the year-ago month.

Total sales in June was about 642.1 million lb, about 1% lower from 648.5 million lb in May and almost 5% higher than 611.993 million lb in the year-ago month.

Of the rest, 215.4 million lb were exported in June, slightly lower than 217.018 million lb in May and down 3.8% from 223.825 million lb in June 2019.

Production in June was about 641 million lb, down 1.2% from 648.63 million lb in May and up 1.8% from 629.72 million lb in June 2019, according to ACC data.

In the domestic market, contracts were increased 5 cents on the week at 64.5-65.5 cents/lb ($1488.11-$1510.15/mt) delivered railcar basis, based on producers push for higher pricing domestically, a source said.

Platts US LDPE Weekly RationaleS&P Global Platts assessed US low density polyethylene $11 higher on the week of July 29 at $992-$1014/mt (45-46 cents/lb) FAS Houston with railcar pricing talked at 42-43 cents/lb range by sources.


Domestic contracts were increased 5 cents on the week at 64.5-65.5 cents/lb ($1488.11-$1510.15/mt) delivered railcar basis, based on producers push for higher pricing domestically, a source said.

Asia LDPE: Prices fall tracking lower crude complex , lackluster demand�� Vietnam demand falls on virus resurgence�� ICE September Brent crude futures down 28 cents/b on week

Asian low-density polyethylene prices rose on July 29 on the back of lower crude values and lackluster demand

September ICE Brent crude was down 28 cents/b from July 22 at $ 43.690/b at 4:30 pm Singapore time (0830 GMT) on July 29.

In Vietnam, demand was low as a second virus outbreak had broke out after nearly 99 days of no cases, sources said.

In plant news, Sasol expects to bring its new 420,000 mt/year low density polyethylene plant in Louisiana, United States, online by the end of October, a month later than last planned, according to a notice posted on the company's website.

The plant was expected to start up by late 2019, but was damaged by a fire during commissioning in January. Sasol then pushed the startup to September and on July 23 to October.

The notice also said Sasol's Lake Charles, Louisiana, project was 99% complete at a cost of $12.7 billion, up from an original estimate of $9 billion.



The overall project includes a new 1.5 million mt/year cracker, a 470,000 mt/year linear low density PE plant, two alcohol units and a 380,000 mt/year ethylene glycol/monoethylene glycol unit.

Sasol is seeking partners to invest in the new cracker, the new LLDPE plant and a legacy 464,000 mt/year cracker at the complex.

That effort is part of a plan to raise at least $6 billion by the end of 2021 to shore up the company's financial strength in light of impacts from lower oil prices and the coronavirus pandemic.

Platts Asian LDPE Weekly RationaleAsian LDPE, with a melt flow index of 0.3-4, but typically between 1 and 2, was assessed at $950/mt CFR Far East Asia (China) on July 29, down $30/mt from the earlier week, on discussions heard at $940-$970/mt CFR.

The CFR Southeast Asia (Vietnam) marker was assessed at $970/mt, down $30/mt from the earlier week, on a typical freight spread of $20/mt between China and Southeast Asia.

Domestic Chinese LDPE prices were assessed at Yuan 8,600/mt ex-works, down Yuan 200/mt from the earlier week, on deals concluded at the same level.

(Weekly LDPE prices can be found on <PCA266>)

Latin American LDPE: Markets unchanged across the region�� Mercosur and Argentina expect higher prices for August�� Traders report limited availability from the US

Spot prices in the Latin American low density polyethylene market were unchanged in the West Coast of South America and in Brazil on July 29, and also reported stability in the domestic markets of Argentina, Brazil, Colombia and Mexico.

Along the West Coast of South America, spot import pricing for LDPE assessed at $1,110/mt on July 29. Historically, US-origin LDPE is known for being most offered, followed by Brazil origin. Traders continue to say there is limited availability of LDPE from the US.

Prices were seen as high as $1,160/mt for the WCSA, while the majority of traders reported stability across the region.

In Colombia, LDPE film prices were unchanged at $1,320/mt during the week. A local source said a domestic producer is having issues with its LDPE plant since the end of 2019, with is affecting availability of the product in the domestic market.

In Brazil, imported LDPE was stable for the week, assessed at $1,070/mt, based on price indications at this level. This is the highest price since December 2018. Since LDPE reached its lowest price amid the coronavirus pandemic on April 29, prices have risen 12.6%.

Current values follow an oversupplied market that kept prices under $1,000/mt in 2019. Now, market players have been reporting low availability on film-grade resins.

In domestic prices, there were no new reports on price increases by Brazilian petrochemical giant Braskem. The company tends to act on its commercial policy only at the start of each month. So far, no changes were announced for its August prices.

The general expectation among market players is for higher prices next month.

The exchange rate in Brazil was recently at its record-low level towards the dollar, which serves as stimulus for Braskem to increase

prices. During the past days, however, the Brazilian Real has regained some strength and ended July 29 at Real 5.15/$1.

In Mercosur, spot price was unchanged for LDPE, assessed at $1,000/mt.

Some local distributors said they were sold out of material and waiting for new August prices and availability from local producer, while not taking new inquiries as there was no product for immediate shipping.

A Uruguayan distributor said he expects higher values for LDPE, lately reported with tight availability.

In Argentina, LDPE prices were flat on week. There is a general expectation of increases for August of a minimum of $50/mt, and a maximum of another $110/mt.

A local producer announced increases of $110/mt from August 1st for all Andean and Caribbean region, therefore market sentiment is that the same increase would hit the Argentinian market.

In Mexico, spot was flat July 29 at $985/mt in line with last talked pricing for the region. Pricing is expected to increase in the short-term sources said with at least one US-based seller indicating much higher offer levels.

Platts Latin American LDPE Weekly RationaleCFR WCSA: Spot LDPE was flat week on week, assessed July 29 at $1,105-$1,115/mt CFR, based on most indications at $1,110/mt.

CFR Brazil: Spot LDPE film pricing was stable week on week, assessed July 29 at $1,060-$1,080/mt, based on price indications at the assessed levels.

FOT Brazil: Spot LDPE pricing was unchanged assessed July 29 at $990-$1010/mt FOT, based on the last known recent CPT Paraguay trading levels $120/mt higher that account for inland freight costs.

Delivered Sao Paulo: Spot LDPE film pricing was unchanged week on week, assessed July 29 at Real 6,990-7,010/mt, based on market reports of no new prices from Braskem.

Delivered Bogota: Spot LDPE was unchanged assessed July 29 at $1,315-$1,325/mt (Pesos 4,873,383-4,910,443) based on domestic offers heard in the market and imports nationalization costs.

Delivered Buenos Aires: Spot LDPE film was unchanged week on week assessed July 29 at $1,555-$1,565/mt (Pesos 112,264-112,986) based on discussion at the assessed price.

Delivered Mexico City: LDPE film was stable week on week at $985/mt (21,675 pesos/mt). The assessment was based on last talked pricing at the assessed level for bulk resin delivered Mexico City.

LINEAR LOW DENSITY POLYETHYLENE

European LLDPE: Stable prices; producers face CP margin erosion�� July margin compression�� August costs set to rise, further lowering margins

European LLDPE grade contracts have seen margin erosion for the first time this year, with contracts in non-LD grades settling at no more than a Eur70/mt increase, according to both converters and producers July 29.



LLDPE producers admitted further consumer pushback than expected, having sought margin expansion increases of more than the Eur84/mt increase in the July ethylene contract price. Market sources pointed to demand being susceptible to the sluggish automotive and construction sectors, and that converters were no longer comfortable with bloated stock levels seen in the second quarter during the coronavirus-related lockdowns. However, with supply remaining tight and a lack of imports, producers had been confident of achieving continued margin expansion, even through the seasonally weak July period. In addition, the spread between LLDPE and LDPE had widened, reflecting the tightness in low density grades, while demand for LLDPE had eased. Market sources now expected that August could see a further rise in costs, which could compress margins further next month. Average CIF NWE July naphtha spot prices rose to $383.63/mt, up 12% from the June average of $342.23/mt, according to S&P Global Platts data on July 28. Asian linear low density polyethylene prices fell July 29 on a week-on-week basis, mostly on the back of lower crude oil futures. In Pakistan, prices were heard at $920-$950/CFR. ICE September Brent crude was down 28 cents/b from July 22 at $43.69/b at 4:30 pm Singapore time (0830 GMT) on July 29. Sources said main demand in packaging was healthy while polymer demand for household and white goods had taken a big hit.

Platts European LLDPE Weekly RationaleLinear low density polyethylene C4 was assessed at Eur870/mt FD NWE on July 29, unchanged day on day and on the week, in line with an indication heard at Eur870/mt.

LLDPE C6 was assessed at Eur910/mt FD NWE, unchanged on the week on stable fundamentals, and taking direction from other grades. S&P Global Platts assessed metallocene spot prices at Eur1,050/mt FD NWE, also unchanged in line with the other LLDPE grades. LLDPE C4 and LLDPE C6 July contract prices were assessed at Eur1,125/mt and Eur1,170/mt FD Germany, respectively, unchanged on the week and up Eur70/mt from the end of June, reflecting contract settlements heard done at Eur70/mt monthly increases over July, and toward C4 settlements heard from a converter at Eur1,130-1,140/mt, which also cited a monthly increase of Eur70/mt.

US LLDPE: Prices increase as market pushes ahead of new month�� June production drops 3% on the month�� LLDPE exports up 38.6% from year-ago month

Spot US linear low density polyethylene prices climbed for all three grades on the week of July 29 based on a strong market push for higher pricing as August approaches.

US LLDPE butene was assessed $11 higher on the week at $794-$816/mt (36-37 cents/lb) FAS Houston with railcar pricing talked at 33-34 cents/lb, by sources.

The FAS assessment includes an additional 3 cents/lb to cover the costs of packaging and transportation to ports.

LLDPE hexene was also assessed $11 higher on the week and in line with talks of a 1-cent premium over butene at $816-$838/mt (37-38 cents/lb) FAS Houston. Metallocene prices was up $11 week on week at $860-$882/mt (39-40 cents/lb).

North American LLDPE production in June declined 2.9% compared to May’s total, according to data released July 24 by the American Chemistry Council.

Production in June was at about 1.85 billion lb, down from about 1.905 billion lb in May and up 5.8% from about 1.748 billion lb in June 2019, according to ACC data.

LLDPE inventory in June was about 2 billion lb and decreased 6.1% from 2.14 billion lb in May.

Total sales in June was about 2.02 billion lb, about 5.7% higher from 1.909 billion lb in May and up 21.1% from about 1.667 billion lb in the year-ago month.

About 987.36 million lb were exported in June, less than 1% higher from 988.869 million lb in May and up 38.6% from 712.1 million lb in June 2019.

In the domestic market, sales in June were about 1.03 billion lb, about 12% increase from 921 million lb in the previous month and up 8% from about 955 million lb from the year-ago month.

In domestic markets, the LLDPE contracts assessment was up 5 cents on the week at 52.5-53.5 cents/lb ($1223.55-$1245.55/mt) on the basis of producers pushing higher pricing for August PE product, a source said.

Platts US LLDPE Weekly RationaleUS linear low-density polyethylene butene was assessed $11 higher on the week at $794-$816/mt (36-37 cents/lb) FAS Houston with railcar pricing talked at 33-34 cents/lb, by sources.

The FAS assessment includes an additional 3 cents/lb to cover the costs of packaging and transportation to ports.

LLDPE hexene was also assessed $11 higher on the week and in line with talks of a 1-cent premium over butene at $816-$838/mt (37-38 cents/lb) FAS Houston. Metallocene prices was up $11 week on week at $860-$882/mt (39-40 cents/lb).

In domestic markets, the LLDPE contracts assessment was up 5 cents on the week at 52.5-53.5 cents/lb ($1223.55-$1245.55/mt) on the basis of producers pushing higher pricing for August PE product, a source said.

Asia LLDPE: Falls tracking lower crude�� S Korea's SK Global plans LLDPE maintenance in Oct�� Crude down 28 cents/b on week

Asian linear low density polyethylene prices moved down July 29, mostly on the back of lower crude futures, on a week-on-week basis.

In Pakistan, prices were heard at $920-$950/CFR.September ICE Brent crude was down 28 cents/b from July 22 at $

43.690/b at 4:30 pm Singapore time (0830 GMT) on July 29.Sources said main demand in packaging was healthy while polymer

demand for household and white goods had taken a big hit.End converters said the cut in salaries and contract labor had

lowered polymer purchasing power.Producers said the number of containers in shipping polymers had

decreased, and the 14 day quarantine at some countries had discouraged many shippers from docking. However local stock in each country was snapped up by buyers, sources said.



In plant news, South Korea's SK Global is planning to shut its 210,000 mt/year LLDPE unit and 190,000 mt/year HDPE unit in Ulsan in October for maintenance, a source close to the company said.

Platts Asian LLDPE Weekly RationaleAsian butene-grade LLDPE with a melt-flow index of 1-2 was assessed down $45/mt week on week at $815/mt CFR Far East Asia (China) July 29, below offers at $820/mt CFR.

The CFR Southeast Asia (Vietnam) marker was assessed down $40/mt week on week at $860/mt, on discussions at $850-$870/mt CFR.

South Asia (India) was assessed at $870/mt CFR, down $10/mt week on week, on discussions at the same level.

Dutiable C6 m LLDPE was assessed at $960/mt CFR Far East Asia, down $50/mt, below an offer at $980-$1,000/mt CFR, while Southeast Asia (Vietnam) was assessed at $990/mt CFR, down $40/mt below an offer at $1,000/mt CFR.

Metallocene LLDPE was assessed at $1,000/mt CFR South Asia, down $30/mt on wide ranging discussions $920-$1020/mt CFR India.

Domestic Chinese LLDPE cargoes were assessed at a traded level of Yuan 7,200/mt ex-works in East China, down Yuan 300/mt on the week ending July 29.

(Weekly LLDPE prices can be found on <PCA270>)

Latin American LLDPE: Market sees stability on week�� Argentina could see $110/mt increase next week�� Mercosur expects higher prices for August

Latin America linear-low density polyethylene pricing was unchanged in the West Coast of South America and in Brazil on July 29, and domestic markets of Argentina, Brazil Colombia and Mercosur also saw stability this week.

In the WCSA, LLDPE was assessed at $900/mt week on week, with some reporting limited availability of the product in the market. Material is mostly available from the US.

Some sources believe LLDPE could reach up to $930/mt or more soon. Most of the contacted traders, however, reported the higher end of the price at $920/mt already.

“We’re hearing that US providers supposedly will not have much material available during August, therefore prices could go up again,” said an Ecuadorian trader.

In Colombia, LLDPE film prices were flat during the week, assessed at $1,100/mt. Sources said nationalization costs would be between $100/mt to $150/mt, depending on the location of the delivery.

Prices for LLDPE butene CFR Brazil were flat week on week, assessed July 29 at $860/mt, a level last seen on mid-February, before the World Health Organization declared the coronavirus outbreak a pandemic.

Prices rose 23% since LLDPE got its lowest pandemic-driven price on April 29.

“I see prices at this level, but I think the increase is mostly over. It does not meant that it will go down but there is not much room for more increase”, a distributor said.


The general expectation among market players is for higher prices next month.

In Mercosur, spot price was flat in the last week of the month at $760/mt. Distributors reported having most of the products already sold out and were expecting local producer to make new materials available for August, at higher values. Distributors said they were not taking more inquiries as had no product available for immediate shipping.

In the Argentinian market, linear low-density prices were assessed flat for the fourth consecutive week after the increase of $100/mt in the beginning of the month. Distributors are reporting intentions of new increases for August, varying from a minimum of $50/mt, and a maximum of another $110/mt.

Local producer announced increases of $110/mt from August 1st for all Andean and Caribbean region, therefore sources believe the same increase should hit the Argentinian market.

In Mexico, spot LLDPE was stable at $745/mt week on week July 29. Pricing for the resin has been the lowest-priced amid competitive domestic supplier pricing.

Platts Latin American LLDPE Weekly RationaleCFR WCSA: Spot LLDPE was unchanged week on week, assessed July 29 at $895-$905/mt based on pricing at $900/mt.

CFR Brazil: Spot LLDPE butene was flat week on week, assessed July 29 at $850-$870/mt, based on pricing talked at the assessed level.

FOT Brazil: Spot LLDPE butene was unchanged week on week assessed July 29 at $750-$770/mt FOT, based on the last known CPT Paraguay trading levels $120/mt higher that account for inland freight costs.

Delivered Sao Paulo: Spot LLDPE butene pricing was unchanged week on week, assessed July 29 at Real 5,890-5,910/mt, based on market reports of no new prices from Braskem.

Delivered Bogota: LLDPE was flat week on week assessed July 29 at $1,095-$1,105/mt (Pesos 4,058,065-4,095,124), based on delivered prices during the week and imports nationalization costs.

Delivered Buenos Aires: Spot LLDPE butene was unchanged on the week assessed July 29 at $1,395-$1,405/mt (Pesos 100,713-101,435) based on talk at $1,400/mt delivered Buenos Aires.

Delivered Mexico City: LLDPE butene was unchanged on the week at $745/mt (16,394 pesos/mt) based on pricing last heard at the assessed level for bulk resin delivered Mexico City.

high-denSity Polyethylene

European HDPE: Stable pricing as August monomer talks begin�� July contract margins fall for first time in 2020�� August demand expected to be challenging

European high density grade polyethylene prices were stable this week, but in the contract market, weaker demand saw producers endure margin compression as contracts settled up Eur70/mt compared with the July monomer increase of Eur84/mt.

Although sources pointed to weaker demand from the key automotive and construction sectors, producer competition was also



touted as a factor. Since suppliers have managed their production and storage well, they were hoping to get more than the monomer, but they didn’t succeed as there was enough competition, a converter said.

Sources said that northern Europe tends to reduce polyethylene demand in July as converters there close their operations for the summer holiday period and to carry out much needed maintenance works, while in August, it is the turn of the southern European converters to close shop. “If you are not careful, you can lose demand to another producer,” the converter said. Market participants are now awaiting the settlement of the August monomer for direction going forward, but comfortable with the lower stock levels and the current downstream demand.

Asian high density polyethylene film prices fell in the week ended July 29 due to weak demand and falls in feedstock prices. September ICE Brent crude was down 28 cents/b from July 22 at $43.69/b at 4:30 pm Singapore time (0830 GMT) on July 29. The polyethylene complex was lacking direction on concerns over whether downstream demand could support prices, and sluggish demand for PE due to heavy rains in China, sources said.

Platts European HDPE Weekly RationaleS&P Global Platts assessed injection-grade HDPE spot prices at

Eur890/mt FD NWE July 29, unchanged on the week, and at the bottom end of an indicated range heard at Eur890-900/mt on stable market fundamentals.

Blowmolding grade HDPE was assessed at Eur900/mt FD NWE, unchanged on the week and at the top end of a Eur890-900/mt range heard. Film-grade HDPE spot prices were assessed at Eur890/mt, also unchanged and at the bottom of a Eur890-900/mt range heard. HDPE injection, blow and film grade contract prices were assessed at Eur1,140/mt, Eur1,150/mt and Eur1,160/mt FD Germany, respectively, up Eur10/mt on the week and Eur70/mt month on month with July contracts heard settled at increases of Eur70/mt from the end of June.

Turkish and African Polyethylene: Weak market activity ahead of Eid holiday�� Limited pre-buying ahead of new month’s pricing�� Tighter availability in West Africa, though activity muted

The Turkish polyethylene markets saw limited activity in the week to July 29 as preparation for the Kurban Bayrami religious holiday beginning July 31 saw participants retreat from the marketplace.

S&P Global Platts assessed the CFR Turkey HDPE film grade flat on the week at $840/mt.

Buyers and sellers were largely on the sidelines. Adding to limited trade was the approaching new month with buyers’ content to sit on the sidelines amid an uncertain demand picture. “Tomorrow [July 30] is a half day. Activity in trading already this week is very quiet, everybody is already on holiday,” a trader said.

Domestic producer Petkim was heard to increase its LDPE spot prices by $30/mt, amid limited offers and tighter supply than other PE grades. Activity in HDPE particularly was heard to remain muted with buyers retreating to the sidelines and limited offers. “There is nothing in the market, it is very quiet,” a trader said.

In the West African markets, activity was also heard to be drying to a halt ahead of the Eid holiday, with availability tighter than in other regions.

HDPE blow molding and LLDPE were heard to be experiencing particularly strong demand. HDPE film demand continued to be heard moderate with supply slightly better than in other grades.

Regional producer Indorama Eleme’s Port Harcourt site was heard not yet at full production following an early-July shutdown adding to demand. “We should see new offers come out next week. There is no issue anyway, demand is there, material is short and everyone is looking at PE,” a local source said.

Platts African and Turkish Polyethylene Weekly RationaleS&P Global Platts assessed the CFR Turkey LDPE spot price up $20/mt on the week at $950/mt, in line with an indication at that level, towards an announced price rise of $30/mt heard and below offers heard at Eur930/mt and FCA offers heard from $970-$1,020/mt.

The LLDPE spot price was assessed down $20/mt on the week at $820/mt below a range of offers from $830-$880/mt and an indicative range of $870-$910/mt. The CFR Turkey HDPE injection grade spot price was assessed flat on the week at $830/mt, below an indication at $870/mt and considering limited market activity in the week.

The CFR Turkey HDPE blow molding grade spot price was assessed flat on the week at $840/mt, below an indicative range of $880-$920/mt, pending further corroboration at this level.

The CFR Turkey HDPE film grade spot price was assessed flat on the week at $840/mt, below an indicative range of $880-$920/mt and below an offer heard at $920/mt.

All CFR North Africa spot price movements were assessed in line with changes in the Turkish market.

The CFR West Africa LDPE spot price was assessed up $20/mt on the week at $1,040/mt, in line with the rise in other markets.

The CFR West Africa LLDPE spot price was assessed up $10/mt on the week at $920/mt, towards an offer at $930-$950/mt.

The CFR West Africa HDPE injection grade spot price was assessed flat on the week at $920/mt amid stability in other markets.

The CFR West Africa HDPE blow molding grade spot price was assessed flat on the week at $920/mt below an offer heard at near $1,000/mt pending further confirmation at this level.

The CFR West Africa HDPE film grade spot price was assessed flat on the week at $940/mt below an offer heard at near $1,000/mt amid stability elsewhere and pending further corroboration of prices at this level.

US HDPE: Grade remains stable as market awaits fresh indications�� HDPE exports up 24% from June 2019�� June production down 1.7% on month

US high-density polyethylene was unchanged for two of the three resins on July 29 based on the market remaining firm as participants await fresh August pricing.

HDPE blowmolding pricing was assessed unchanged on the week at $827-$849/mt (37.5-38.5 cents/lb) FAS Houston with railcar pricing talked at 35 cents/lb, by a range of sources.




HDPE film increased $11 at $893-$015/mt (40.5-41.5 cents/lb) FAS Houston and HDPE injection was flat at $783-$805/mt (35.5-36.5 cents/lb) FAS Houston.

Meanwhile, North American HDPE production in June declined 1.7% compared to May’s total, according to final data released July 24 by the American Chemistry Council.

Production was barely changed compared to the year-ago month, the data showed.

Production in June was at about 1.908 billion lb, down from about 1.942 billion lb in May and up from about 1.907 billion lb in June 2019, according to ACC data.

HDPE inventory in June was about 1.89 billion lb and decreased about 5% from 1.99 billion lb in May.

Total sales in June was about 2 billion lb, about 4.4% higher from 1.921 billion lb in May and 11.7% higher than 1.795 billion lb in the year-ago month.

About 678.356 million lb were exported in June, down 2.8% than 697.773 million lb in May and up about 24% from 545.964 million lb in June 2019.

In the domestic market, sales in June were about 1.33 billion lb, up 8.5% from 1.223 billion lb in the previous month and up 6.2% from 1.249 billion lb from the year-ago month.

Domestic contracts were 5 cents higher on the week and assessed HDPE blowmolding at 53-54 cents/lb ($1234.58-$1256.58/mt), HDPE injection at 56-57 cents/lb ($1300.71-$1322.71/mt) and HDPE film at 58-59 cents/lb ($1344.81-$1366.81/mt), as producers push for higher pricing in August, a source said.

Platts US HDPE Weekly RationaleUS high-density polyethylene blowmolding pricing was assessed unchanged on the week at $827-$849/mt (37.5-38.5 cents/lb) FAS Houston with railcar pricing talked at 35 cents/lb, by a range of sources.

HDPE film increased $11 at $893-$015/mt (40.5-41.5 cents/lb) FAS Houston and HDPE injection was flat at $783-$805/mt (35.5-36.5 cents/lb) FAS Houston.


Domestic contracts increased 5 cents on the week July 29 and assessed HDPE blowmolding at 53-54 cents/lb ($1234.58-$1256.58/mt), HDPE injection at 56-57 cents/lb ($1300.71-$1322.71/mt) and HDPE film at 58-59 cents/lb ($1344.81-$1366.81/mt), as producers push for higher pricing in August, a source said.

Asia HDPE: Falls on weak demand, slump in feedstock prices�� Crude falls 28 cents/b on week�� Shipping difficulties hinder trade

Asian high density polyethylene film prices fell in the week ended July 29, as prices decreased due to the weak demand and falls in feedstock prices.

September ICE Brent crude was down 28 cents/b from July 22 at $ 43.690/b at 4:30 pm Singapore time (0830 GMT) on July 29.

The polyethylene complex was lacking direction on concerns over whether downstream demand could support prices, and sluggish demand for PE due to heavy rains in China, sources said.

In Pakistan, HD film prices were heard at $950-$1000/mt CFR. In India, firms were still facing massive manpower shortage due to the phased manpower rotation, and this was also posing problems in loading/unloading of goods given its polymer labor-intensive nature.

Business conditions remain difficult across sectors and there was a reduction of containers due to the pandemic, producers said.

The 14 day quarantine at some countries had discouraged many shippers from docking, sellers said.

Platts Asian HDPE Weekly RationaleDutiable unimodal film grade HDPE with a melt flow index of 0.07-0.18 was assessed $30/mt lower week ending July 29 at $920/mt CFR Far East Asia (China), on discussions at $900-$920/mt CFR FE Asia.

Film grade HDPE was assessed at $930/mt CFR Southeast Asia (Vietnam), down $30/mt on cargo discussions at $920-$940/mt CFR.

The CFR South Asia (India) HDPE film grade was assessed at $920/mt, down $30/mt, on discussions reported at $890-$920/mt CFR.

Yarn grade HDPE was assessed down $30/mt week ending July 29 at $880/mt CFR Far East Asia (China), below an offer at $900/mt CFR.

Yarn grade was assessed at $880/mt CFR Southeast Asia (Vietnam), down $40/mt above a buy idea at $870/mt CFR.

Injection grade HDPE was assessed at $810/mt CFR Far East Asia (China), down $50/mt week ending July 29 above a buy idea at $800/mt CFR.

Injection grade HDPE was assessed at $830/mt CFR Southeast Asia, down $50/mt on the week ending July 29 on a freight differential of $20/mt between China and Southeast Asia.

Injection grade was assessed at $880/mt CFR South Asia, down $10/mt from the week earlier, below a sell idea at $900/mt CFR.

Blow molding grade HDPE was assessed at $860/mt CFR Far East Asia, down $80/mt week ending July 29, on discussions at the same level as reported by a producer. Other market participants also agreed this might be a tradable level.

The CFR Southeast Asia (Vietnam) blow molding grade HDPE marker was assessed at $910/mt CFR, down $50/mt from the earlier week, on discussions at $900-$920/mt CFR.

CFR South Asia blow molding grade was assessed at $920/mt, down $20/mt from the week earlier, above a buy idea at $900/mt CFR.

Domestic HDPE Chinese cargoes were assessed at Yuan 8,150/mt ex-works, in East China, down Yuan 150/mt from the week earlier, as cargoes traded at the same level.

(Weekly PE price assessments can be found on <PCA0274>)

Latin American HDPE: WCSA and Brazil see uptrend on week�� Domestic markets see some stability across the region�� Markets expect higher values for early August

High density polyethylene saw prices saw uptrend sentiment on July 29 for all grades of HDPE in the West Coast of South America and in Brazil, and saw higher prices for Colombia domestic, and stability was



reported across all other domestic markets and the Mercosur region. Higher values are expected for August.

Along the West Coast of South America, prices for HDPE film were up $20/mt assessed July 29, $10/mt for blowmolding and for injection. US-origin HDPE film is commonly the most offered among imports, followed by China and Middle-East.

Local sources continued to report limited availability of HDPE film, while other products were available for spot purchases and prompt loading. Sources reported higher prices during the week, saying HDPE film could reach up to $1,080/mt and blowmolding $1,020/mt.

“Prices keep rising in Colombia, especially for grades with not so much availability, like film,” a local trader said.

Colombian sources said a premium of $30-$40/mt was possible depending on the location of the delivery. In Colombia domestic market, the HDPE family prices were on track of the WCSA and saw $10-$20/mt higher movements for HDPE grades – assessed at $1,210/mt for film, $1,110/mt for injection and $1,150/mt for blowmolding. Sources said nationalization costs would be between $100/mt to $150/mt, depending on the location of the delivery.

Prices for HDPE CFR Brazil were up week on week for all grades covered by S&P Global Platts. Film and blowmolding grades were up $30/mt, assessed July 29 at $980/mt and $940/mt, respectively, while the injection grade was up $20/mt, assessed at $900/mt.

Market players have been reporting shortages on imported HDPE resins, especially the ones from the film grade.

“There is very little material as some producers have plants under maintenance. Yesterday we assured a 250 mt sale with payment in advance,” a distributor said.


The general expectation if for higher levels next month, “following the trend in other regions”, according to a converter.

“We heard they exported a lot and lowered their inventory levels to take advantage of the foreign exchange rate,” a trader said.

The exchange rate in Brazil was recently at its record-low level towards the dollar. During the past days, however, the Brazilian Real has regained some strength and ended July 29 at Real 5.15/$1.

In Mercosur, spot price was static for all HDPE grades. HDPE film was assessed at $820/mt, while blowmolding at $800/mt, and injection at $810/mt.

More than one local distributor said they were sold out of material and just waiting for new August prices and availability from local producer. The expectation is for higher prices. “We’re not accepting more orders because we have no product available,” a Paraguayan source said.

A Uruguayan distributor said he expects higher values for all HDPE.In Argentina, high-density prices were assessed unchanged week

on week. There is a general expectation of increases for August of a minimum of $50/mt, and a maximum of another $110/mt.

Local producer announced increases of $110/mt from August 1st for all Andean and Caribbean region, therefore sources believe the same increase should hit the Argentinian market.

In Mexico, spot was unchanged across the 3 resin grades on the week July 29 . Pricing was expected to continue to increase in August amid pressure from global pricing.

Platts Latin American HDPE Weekly RationaleCFR WCSA: Pricing for HDPE film-grade was up $20/mt week on week, assessed July 29 at $1,015-$1,025/mt based on most offers being at $1,020/mt.

CFR Brazil: Spot HDPE film was up $30/mt week on week, assessed July 29 at $970-$990/mt, based on reports of uptrend and shortage on the resin.

FOT Brazil: Spot HDPE film was assessed unchanged on the week July 29 at $810-$830/mt, based on last known CPT Paraguay trading levels $120/mt higher that account for inland freight costs.

Delivered Sao Paulo: Spot HDPE film pricing was unchanged week on week, assessed July 29 at Real 5,890-5,910/mt, based on market reports of no new prices from Braskem.

Delivered Bogota: HDPE film was up $20/mt assessed July 29 at $1,205-$1,215/mt (Pesos 4,465,724-4,502,784) based on local domestic prices and imports nationalization costs.

Delivered Buenos Aires: Spot HDPE film pricing was unchanged on the week assessed July 29 at $1,425-$1,435/mt (Pesos 102,878-103,600). The assessment was based on talk of pricing at the assessed level.

Delivered Mexico City: Spot HDPE blowmolding was flat on the week at $825/mt (18,154 pesos/mt). The assessment was based on last known pricing talked at the assessed level for bulk resin delivered Mexico City.

European Recycled HDPE: August expected steady amid holidays, low virgin price�� Bales supply improving; prices sticky�� Economics still support virgin over recycled

Sentiment in the European recycled high density polyethylene market in the week started July 26 pointed largely to a stable market moving into August. Though recyclers' margins were still under some pressure, particularly for lower grades of R-HDPE like black blow molding pellets and pipe grades, demand was seen insufficient to warrant price increases. On the feedstock side as well, although supply of post-consumer bales was heard to be steadily increasing, price decreases were not recognized in the week started July 26 for August.

"We'd like to increase prices in August, but it cannot be justified, so the best we hope for is rollover," one recycler said.

Buyers cited too high a premium to virgin HDPE to warrant looking more seriously at increasing R-HDPE purchases, while further concern came from recyclers of the impending slowdown in activity expected during August. The premium over virgin HDPE, though narrower than it was at the height of the coronavirus pandemic in Europe, was stable at Eur58/mt on July 29.

Platts European Recycled HDPE Weekly RationaleS&P Global Platts assessed R-HDPE light pellets at Eur950/mt FD

NWE July 29, stable day on day and on the week, in line with an



indication at this level and talk of a rollover in prices from July to August. Post-consumer mixed HDPE bales were assessed at Eur180/mt FD NWE, stable day on day and on the week, in line with an indication at this level and talk of a rollover in prices from July to August.

POLYPROPYLENE

European Polypropylene: Concern over COVID-19 limits spot buying�� Attention turns to August C3 contract talks�� Ample availability in market

Growing concerns over a potential second wave of coronavirus cases in Europe was a contributing factor to subdued demand in the polypropylene spot markets in the week to July 29.

Worries surrounding a possible second wave were heard to have dampened prebuying ahead of August, as buyers looked to avoid building stock levels.

In addition to coronavirus concerns, traditional seasonal trends also played a role in weakening spot demand in the week.

August is widely seen as a month of limited demand as it is the peak of the European summer holiday season, taking many participants out of the market for several weeks. Sources said they expected this trend to apply to the coming month, despite the atypical trends seen earlier in the year in the wake of the lockdowns imposed in a bid to limit the spread of COVID-19.

A third factor limiting activity in the spot market was a shift in attention back to upstream propylene, as PP market participants await the outcome of August propylene contract price discussions.

Higher average naphtha prices in July compared with June, and uncertain downstream demand provide conflicting arguments as the propylene industry-settled CP discussions evolve.

Downstream, the automotive sector continues to struggle, market sources said, impacting overall PP demand.

Meanwhile, availability remained ample.“The market is longish. Most producers have curtailed production,”

one seller said, adding that some in the market were looking at possibilities to sell into the Asian market.

Platts European Polypropylene Weekly RationaleS&P Global Platts assessed homo injection PP spot prices unchanged on the week at Eur870/mt FD NWE July 29, at the bottom of a producer’s Eur870-880/mt FD NWE range and within a wider Eur850-900/mt FD NWE range heard.

Copolymer PP spot prices were also assessed unchanged on the week at Eur910/mt FD NWE, maintaining a Eur40/mt premium over homo injection PP, within a range of indications placing the premium over homo injection PP at Eur30-50/mt.

Homo injection PP contract prices were assessed unchanged on the week and up Eur45/mt from the end of June at Eur1,125/mt, within a Eur1,100-1,140/mt contract price range heard earlier in the month, and near the bottom end of increases heard at Eur40-75/mt for July contracts throughout the month, considering wider confirmation of

increases in a Eur40-50/mt range. Copolymer PP July contract prices were assessed up Eur5/mt on the week and up Eur40/mt from the end of June at Eur1,170/mt, below the month-on-month increase in homo injection contract prices, and considering feedback of a weaker copolymer market received throughout the month.

Turkish and African Polypropylene: Limited activity ahead of holiday weekend�� Fresh Turkish Lira plunge causing challenges for importers�� Buyers on sidelines amid concerns over coronavirus

Activity in the Turkish Polypropylene markets was limited in the week to July 29, with many market players absent ahead of the Kurban Bayrami religious holiday beginning July 31.

S&P Global Platts assessed the CFR Turkey PP raffia spot price down $20/mt on the week at $910/mt.

Market players remained largely on the sidelines in the week to July 29, with many taking the week off ahead of a half-day July 30 and full July 31 public holiday to mark the 4-day Eid festival. “Everybody has went to the seaside or wherever it is cooler. Activity is closed, there is a quiet atmosphere already,” a trader described.

Buyers were heard to be particularly cautious amid an uncertain downstream demand picture with convertors wary of an ongoing COVID-19 resurgence in parts of Europe. Sellers, though looking to offload material, were cautious with the new month approaching amid expectations of modest increases in feedstock costs filtering through to PP. “Today, inevitably offers are very seldom. It is much or less equal to last week or slightly lower,” a trader said.

Further weakness in the Turkish Lira was adding additional barriers to trade for importers, despite efforts by Turkish state banks to stabilize the embattled currency. The currency sank to a record low versus the Euro of 8.18 Lira/Euro July 29, and plunged towards the 7 Lira/Euro mark for the first time since May in spite of recent relative weakness in the Dollar markets.

Despite recent weak demand and the coronavirus pandemic continuing to plague markets, PP imports during June were up 37.6% year on year, according to data from Turkish statistics agency Turkstat. The rise to 184,810 mt imported also represented a 12.8% rise from May.

In the West African markets, demand remained steady amid more limited supply than elsewhere. “PP is okay, not so good not so bad, though there have not been any new offers,” a local source said.

Activity was heard to be largely concluded for the month ahead of the Eid holiday in the region with market participants looking ahead to new August offers.

Platts African and Turkish Polypropylene Weekly RationaleS&P Global Platts assessed the CFR Turkey PP raffia spot price down $20/mt on the week at $910/mt July 29, below a range of offers from $920-$930/mt, a DAP offer at $1,000/mt, and an indication at $930/mt.

The CFR Turkey PP copolymer spot price was assessed flat on the week at $1,000/mt, below a duty free offer at $1,040-$1,050/mt and an indication at $1,060/mt, and considering feedback of weak demand.



The CFR Turkey PP fiber spot price was assessed flat on the week at $970/mt, below a range of offers at $980-$990/mt and an indication at $1,000/mt.

The CFR North Africa spot price was assessed down $20/mt on the week at $910/mt, in line with the fall in Turkey.

The CFR North Africa PP copolymer spot price was assessed flat on the week at $990/mt, in line with stability in Turkey.

The CFR West Africa PP raffia spot price was assessed flat on the week at $970/mt, below an offer heard at $1,030-$1,050/mt, pending further corroboration of prices at this level.

The CFR West Africa PP copolymer spot price was assessed flat on the week at $1,030/mt, taking direction from stability in North Africa and Turkey.

US PP: Trade muted on limited activity�� Spot offers quiet, market awaits CP settlement�� June production down 2% on month: ACC

US spot polypropylene export pricing was unchanged the week July 29 as market participants awaited fresh August offer levels from suppliers, sources said.

Homopolymer injection-grade polypropylene was assessed flat on the week at $948-$970/mt (43-44 cents/lb) FAS Houston. Spot pricing was talked at 40-41 cents/lb level for railcars, but sources said offers were hardly availability.

The FAS assessment includes an estimated 3 cents/lb in additional fees to cover packaging, and transportation to ports.

Co-polymer grade was assessed at $1,003/mt, also stable week on the week, based on a talked 2-cent premium to homopolymer grades.

In the domestic markets, PP pricing was assessed flat at 44.5 cents/lb delivered rail car basis for homopolymer injection grades. Pricing includes a market-accepted 18-cent premium over feedstock PGP contracts at 26.5 cents/lb. Domestic pricing was also stable on the week at 46.5 cents/lb delivered rail car basis for homopolymer fiber, which maintained a 20-cent premium over the PGP contract.

Participants were heard awaiting the feedstock contract pricing settlement and anticipate firmer pricing amid higher spot polymer-grade propylene movements.

In data, North American polypropylene production fell 2.2% in June from the previous month, according to data by the American Chemistry Council.

Production was 4.6% lower than in June 2019, the data showed.June production surpassed 1.37 billion lb, down from 1.410 billion lb

in May and down from 1.446 billion lb in the year-ago month.Total sales were over 1.475 billion lb, up 10.5% from 1.334 billion lb

in May and up 7% from 1.337 billion lb in June 2019.Of those sales, 121.2 million lb were sold into the export market in

June, which is a 17.5% increase from 103 million lb in May and a nearly 274% increase from 32.432 million lb in the year-ago period.

In the domestic market, over 1.354 billion lb was sold in June, up nearly 10% from May and almost 1% higher from June 2019.

North American polypropylene inventories for May were reported at more than 1.589 billion lb, down about 6% from May, ACC inventory data showed.

North American polypropylene capacity for June was unchanged on the month, reported at 19.675 billion lb, up 2% for the year, ACC capacity data showed.

In plant news, Petrochemical producer Braskem America reported an emission event at its polypropylene unit in Freeport, Texas , according to a filing made July 25 with the Texas Commission on Environmental Quality.

The event lasted 11 hours until 8 am CT on July 25.The company was not immediately available for comment July 27,

but said in the filing that “The root cause of the emission event is under investigation, and the site is actively trying to troubleshoot the cause of the event at the time of the initial notification submittal."

The plant produces 360,000 mt/year of polypropylene , according to S&P Global Platts Analytics data.

Platts US PP Weekly RationaleS&P Global Platts assessed export homopolymer injection-grade polypropylene unchanged on the week at $959/mt FAS Houston on July 29.

The assessment was based on talk of pricing at 40-41 cents/lb rail car basis.

Co-polymer grade was assessed at $1,003/mt, also flat on the week, based on a 2-cent premium to homopolymer grades.

The FAS assessment includes additional fees, estimated at about 3 cents/lb to cover packaging and transportation to ports.

Domestic PP pricing was assessed stable at 44.5 cents/lb delivered rail car basis for homopolymer injection grades. Pricing includes a market-accepted 18-cent premium over feedstock PGP contracts at 26.5 cents/lb. Domestic pricing was also flat on the week at 46.5 cents/lb delivered rail car basis for homopolymer fiber, which maintained a 20-cent premium over the PGP contract. Contract pricing for July has not settled at time of publication.

Asian PP: Mixed sentiment amid uncertain outlook�� Sinopec and CNPC stocks at 645,000 mt�� Vietnam’s Da Nang in lockdown for 15 days

Asian polypropylene sentiment were mixed this week amid uncertain outlook.

The CFR Fareast Asia marker was assessed $5/mt higher on the week at $905/mt for PP raffia grade on July 29, on the back of firmer PP futures market on Dalian Commodity Exchange, which lent support to China domestic prompt PP prices.

Trade participants generally felt that the PP fundamental remained manageable in China in the short term before upcoming new startups.

The total PE and PP stocks of China’s Sinopec and CNPC remained low at around 645,000 mt on July 29, a source said.

Trade participants are closely monitoring the PP supply for raffia grade in China ahead of the imminent September futures contract settlement.

In Southeast Asia, on the contrary, the PP prices tumbled $20/mt on the week at $920/mt CFR SE Asia for PP raffia grade over the same period, with lackluster buying interests.



“Buyers [from Southeast Asia] are completely silent at the moment, we haven’t heard any buying interests,” a producer said.

Da Nang, the third-largest city in Vietnam, had been in lockdown for 15 days from July 28 amid fresh outbreak.

“Vietnam situation is complicated now. Most customers keep quiet…. dare not take in new stock…. People are worried about social distancing again,” a trader based at Vietnam said.

In India, there has been limited spot trade in the week ended July 29, according to market participants.

One Indian buyer said they had enough inventory and were not under pressure to buy more at the moment. Another buyer said domestic supply was also available to meet their demand.

Meanwhile, offers remained largely stable and limited, especially from Middle East origins cargoes, to most Asian customers.

Sellers were not in a rush to conclude deals with limited inventories pressure, sources said.

Since holidays will begin in Middle East this week, offers are now expected to come only from first week of August, sources said.

Meanwhile, upstream propylene market stayed strong, providing support to Asian PP prices, a producer said.

Asian propylene edged $5/mt lower on the week at $820/mt CFR China on July 29, Platts data showed.

Platts Asian PP Weekly RationalePP Raffia CFR FE Asia marker was assessed up $5/mt on the day, also $5/mt higher on the week, at $905/mt on July 29, reflecting deals and tradable discussions heard at $900-$910/mt, below offers and selling indication heard at $910-$940/mt for dutiable cargoes.

Non-dutiable PP raffia cargoes were heard discussed at around $930-$935/mt, with offers at $940-$960/mt.

PP Injection CFR FE Asia marker was assessed up $5/mt on the week at $905/mt, following PP raffia marker.

China domestic prompt PP was assessed up Yuan 25/mt on the day, or up Yuan 90/mt on the week, at Yuan 7,725/mt ex-works, reflecting tradable discussions heard at Yuan 7,700-7,750/mt.

Isotactic PP was assessed $5/mt higher at $915/mt CFR FE Asia over the same period, considering a typical price differential of $10-$20/mt to the base raffia grade.

Biaxially oriented PP was assessed $5/mt higher on the week at $920/mt CFR FE Asia, following the adjacent marker, below offers heard at $930-$940/mt.

Block copolymer was assessed $5/mt higher on the week at $945/mt, reflecting $40/mt premium heard to PP raffia grade, below offers heard at $980-$990/mt.

In Southeast Asia, PP raffia was assessed down $20/mt on the week at $920/mt on July 29, reflecting tradable discussions heard at $910-$930/mt, below offers heard at $940-$950/mt, above bids heard at $910/mt or below $900/mt.

Block copolymer was assessed $20/mt lower on the week at $960/mt CFR SE Asia for dutiable cargoes, reflecting the spread heard at $40/mt higher to PP raffia grade.

In South Asia, Raffia was assessed at $950/mt, unchanged from last week, reflecting limited tradable discussions and below selling indication heard at $960-$970/mt

PP copol was also unchanged at $990/mt CFR South Asia, following raffia grade, amid limited tradable discussions. Selling indication was heard at $990-$1000/mt, but unable to be verified.

Weekly PP price assessments can be found on <PCA282>

Latin American PP: Stability across most of the market�� WCSA sees $10/mt increase for copolymer�� Mercosur region expects higher August prices

Latin American polypropylene market participants saw mostly stable prices assessed on July 29 for both grades of PP in Brazil and the Mercosur region, while in the West Coast South America stability was seen for homopolymer and a $10/mt increase reported for copolymer.

Along West Coast South America, spot homo polypropylene prices were reported unchanged week on week at $1,000/mt CFR WCSA July 29. Products were heard available for delivered in Chile, Ecuador, Peru and Colombia.

Offers were talked with a $80/mt premium for co-polymer over homopolymer, assessed at $1,080/mt, up $10/mt week on week. Offers seen to WCSA are generally mixed between the US, Asia and Middle East.

A regional player said prices were stable during the week CFR Colombia. A Chilean player reported prices at $1,020/mt for export loading in the third week of August, and $1,070/mt for the domestic market.

A Brazilian big trader said he closed deals at $1,000/mt for homopolymer in Colombia and $1,040/mt in Peru.

Another local player said prices could be seen up to $1,080/mt in the region, which was the highest value seen during the week.

In Brazil, PP prices were stable this week, with homopolymer grade assessed July 29 at $1,040-$1,060/mt and copolymer grade at $1,060-$1,080/mt. Both have been on pre-pandemic levels for the past four weeks.

During the pandemic’s worst moment, CFR Brazil PP prices reached $850/mt for homopolymer and $900/mt for copolymer, both settled on April 29.

Recovery, however, is starting to show signs of deceleration in other markets. Asian prices, for example, have been hovering around $900/mt CFR FE Asia, sometimes dropping or increasing a few dollars a day.

“Asia had a downtick last week. Yet, I do not believe on a downtrend, but on an accommodation around the current level,” a converter said.

A couple of sources who trade PP only have been reporting certain stability in prices in the past weeks, as well as irregular offers due to low inventories.

In Mercosur, market participants said PP homopolymer and co-polymer prices were unchanged, and assessed static week on week, respectively. Homo product was assessed at $980/mt and copol at $1,000/mt.

Sources believe local producers are expected to send new prices in the first days of August, or next week. The common believe is values



will be higher for August. A Uruguayan distributor continued to report the market has limited availability of PP from local producers.

The assessments were based on the last known CPT Paraguay trading levels talked $120/mt higher, with the difference accounting for inland freight costs, and also indications from the Argentinian and Uruguayan markets.

Platts Latin American PP Weekly RationaleCFR WCSA: Spot homopolymer-grade polypropylene prices were flat week on week, assessed July 29 at $995-$1,005/mt.

The copolymer-grade PP was up $10/mt at $1,075-$1,085/mt, with the premium over homopolymer talked at $80/mt.

CFR Brazil: Spot PP pricing was flat for both homopolymer and copolymer grade, based on reports of stability. The homopolymer grade PP was assessed July 29 at $1,040-$1,060/mt and the copolymer grade at $1,060-1,080/mt.

FOT Brazil: Spot PP pricing was unchanged for homopolymer and flat for copolymer grades, assessed July 29 at $970-$990/ mt FOT and $990-$1010/mt FOT, respectively. The assessments were based on the last known CPT Paraguay trading levels talked $120/mt higher, with the difference accounting for inland freight costs.

POLYSTYRENE

European Polystyrene: Market awaits August pricing�� Demand expected to soften for August�� EPS imports expected in September

Consumers in the European polystyrene markets were waiting patiently on July 29 for the end of the month, and with it settlement of upstream styrene monomer contract pricing for August.

Sources had previously indicated they expected a gentler move between July and August, after a Eur60/mt hike between June and July for GPPS. Settlements for the July contract were heard to be finalized in a Eur55-70/mt range, with strong confirmation of a Eur60/mt increase over June from market participants.

General sentiment in the market pointed to gradual demand increases over the coming months, but this was expected to be suspended during August, as both the summer holiday period and resurgent cases of COVID-19 in southern Europe saw economic activity slow down.

"Demand will be fairly low. Especially in the Mediterranean countries," said a converter. "Germany and France are good but nothing above usual."

In the spot market, players were looking at September. Offers of around 1,050 CIF Med were heard from Korean HIPS producers, a source said, pressuring pricing in that market.

Despite some indications of stronger demand for HIPS material from the food packaging sector leaving supplies tighter in North West Europe, the premium for HIPS had narrowed towards GPPS. Sources in July reported a range of Eur70-90/mt seen from producers in the market, lower than the typical Eur100/mt premium.

In the EPS market, talks had revolved around similar import pressures expected. September arrival imports from Turkey and Iran were expected to weigh on prices. More material was also expected

from these countries of origin, due to outbreaks of COVID-19 in Uzbekistan and Pakistan shuttering usual trade flows.

Upstream, styrene monomer faced a turbulent market. Weak underpinnings from high stock levels in Europe were exaggerated by similar softness in the upstream feedstock benzene market. The benzene market saw a shift in sentiment in the US on July 28 that led to a sudden price surge, which also led European prices upwards.

Platts European Polystyrene Weekly RationaleS&P Global Platts assessed the GPPS spot price at Eur950/mt FD NWE on July 29, stable on the week, within no disproving indications and taking into account a Eur940-980/mt range FD Italy heard from a trader.

The HIPS spot price was assessed at Eur1,030/mt FD NWE, stable week on week, at the higher-end of a premium indication from a trader at Eur70-80/mt over GPPS.

EPS spot prices were assessed at Eur1,070/mt FD NWE, stable week on week, with no disproving indications.

Platts assessed the freely negotiated net contract price for GPPS at Eur1,035/mt FD Germany, stable on the week and up Eur60/mt over June, in line with settlements for July contracts heard this week at Eur60/mt above June.

The HIPS net contract price was assessed stable week on week at Eur1,135/mt FD Germany, keeping a stable premium of Eur100/mt over the GPPS contract price.

The EPS contract price was assessed stable on the week at Eur1,345/mt FD Germany, within an indicated value range at Eur1,300-1,350/mt from a distributor in the week to July 22.

Turkish and African Polystyrene: Market activity muted ahead of Eid holiday�� Converters cautious amid coronavirus outbreaks in Europe�� Feedstock styrene looking at ethylene for support

The Turkish polystyrene markets saw limited activity in the week to July 29 ahead of the Kurban Bayrami festival beginning July 31, and new month’s price levels.

S&P Global Platts assessed the CFR Turkey GPPS spot price flat on the week at $1,020/mt.

The four-day Eid public holiday beginning July 31 saw many market participants out of action with many taking holidays leading to limited activity in the marketplace. Adding to muted business was the approaching new month, with sellers heard largely content to sit on the sidelines amid expectations of modest price rises of feedstock.

Converters were heard to be particularly cautious amid coronavirus outbreaks on continental Europe raising fears of a second set of lockdown.

Demand for EPS remained a bright spark, with an increase in construction activity providing a boost following a government stimulus package to promote construction activity, resulting in an explosion in mortgage undertakings. EPS is commonly used for rigid panels and insulation in construction activity.

In the feedstock styrene markets, participants looked to upstream ethylene for contract price guidance with upstream benzene providing less support to styrene than expected.



Supply for styrene and benzene was heard to remain strong with sellers looking to the export market for buyers amid limited demand from downstream consumers.

Platts African and Turkish Polystyrene Weekly RationaleS&P Global Platts assessed the CFR Turkey GPPS spot price flat on the week at $1,020/mt July 29, with no disproving indications and limited activity.

The CFR North Africa GPPS spot price was also assessed up flat on the week at $1,030/mt.

The CFR Turkey HIPS spot price was assessed flat on the week at $1,070/mt, maintaining a stable premium over GPPS.

The CFR North Africa HIPS spot price was also assessed up flat on the week at $1,080/ mt.

The CFR Turkey EPS spot price was assessed flat on the week at $1,070/mt amid limited activity heard.

US PS: August price nominations see support from raw materials�� August benzene contract poised to move higher�� Spot activity remains thin

Polystyrene prices were unchanged on the week July 29 as producers sought to push through August price increases.

Dynamics were littled changed as stronger raw material costs lent support to an increase while end users pushed back, citing continued soft demand. Multiple US producers were heard to be seeking a 3 cents/lb increase in August and an uptick in raw materials was likely to support an increase.

Sources in the benzene market had previously posited that the August US benzene could settle at near 152 cents/gal, up from 139 cents/gal in July.

US PS prices historically rise 1 cent for every 10 cents increase in the US benzene price, sources have said. Meanwhile spot activity continued to lull this week and no firm bids or offers were seen with no confirmed trades reported. In Asia, polystyrene prices were unchanged week on week to close July 29 at $930/mt CFR China.

US PS Weekly RationaleSpot general purpose export polystyrene pricing was assessed flat July 29 at $1,025-$1,047/mt FAS Houston on notional railcar offers at 45 cents/lb.

The HIPS assessment was also level on the week and was at $1,091-1,113/mt FAS Houston based on notional railcar offers heard at 48 cents/lb. The assessments account for an additional 3 cents for transportation and bagging. US domestic polystyrene for general-purpose material was assessed flat at 68 cents/lb ($1,499/mt) delivered rail-car while high-impact resin closed flat at 76 cents/lb ($1,675.50/mt) delivered rail car.

Asian PS: HIPS stable, GPPS stable to firm�� Concerns of slowing demand in Q3 heard among Chinese traders�� China's PS imports surge in June

Asian general purpose polystyrene remained stable on the week at $930/mt CFR China but rose $5/mt to $940/mt for CFR Southeast Asia,

while high-impact polystyrene remained flat on the week to $1030/mt CFR China and $1035/mt CFR Southeast Asia on July 29.

Offer levels generally stayed flat on the week, despite thinner trading seen in the market.

Sources were heard of mixed opinions on the short-term market outlook. On one hand, traders mentioned about inventory buildup and sales pressure as downstream buyers took a bearish view on the market direction and chose to ride on the fence.

"Demand in the third quarter would be much worse than in the second quarter," said a trader.

Sales and production of home appliances would likely decline in August according to producers' production plan, which was partially due to concerns of re-surge in coronavirus infections.

On the other hand, a producer reported low inventory available for August due to the amount of orders received.

Meanwhile, stable demand from food packaging and utensils continued to support GPPS prices, as the producer said that "demand for GPPS has been quite good despite the pandemic outbreak."

In statistic news, China's GPPS imports surged 23.20% on the month and 32.20% on the year to 124,421 mt in June, while HIPS imports also jumped 27.7% month on month and 37.50% on-year to 57,835 mt in June, according to the latest data released by China Customs Statistical Information Center.

With the reopening of several economies, China's EPS exports also rose 7.8% on the month to 14,989 mt in June, though it was 21% lower year over year, showed the data.

On the feedstock side, Asian styrene rose $6/mt on the week at $690/mt CFR China on July 29. Despite the gains, CFR China styrene remained under pressure from high inventory which hovered around the level of 300,000 mt, while domestic operating rates heard over 83%.

Platts Asian PS Weekly RationaleGeneral purpose polystyrene CFR China was assessed flat on the week at $930/mt on July 29, based on tradable indication heard at $930-$940/mt.

CFR Southeast Asia was assessed up $5/mt on the week at $940/mt, above a bid heard at $935/mt CFR SEA.

High-impact polystyrene was assessed flat on the week at $1,030/mt CFR China on July 29, below offers heard between $1070/mt and $1,080/mt. CFR SEA was assessed unchanged on the week at $1,035/mt, maintaining the spread to CFR China.

Expandable polystyrene FOB Northeast Asia for general purpose grade was assessed flat on the week at $890/mt on July 29, based on tradable indication heard at $890/mt and below the best offer heard at $900/mt.

Flame retardant grade was also assessed unchanged on the week at $940/mt on July 29, with the price spread between general purpose and flame retardant grades maintained at $50/mt.



ACRYLONITRILE BUTADIENE STYRENE

European ABS: Limited activity as demand remains subdued ahead of new Aug pricing�� Some support provided by weak import market�� Butadiene CP settles up Eur35/mt from July

The European ABS markets saw stable activity continue this week as market participants looked ahead to a new month’s pricing amid the settling of feedstock contracts. S&P Global Platts assessed the European domestic spot FD NWE price flat on the week at Eur1,285/mt.

Domestically, demand remained unchanged on the week with limited demand from the automotive sector, though medical and furniture applications showed some bright signs. Despite an improvement on recent months, the market remained subdued as participants looked ahead to the settling of feedstock contracts and the subsequent new monthly pricing from Aug. 1.

Pre-buying was understood to be at a minimum despite some expectations of August price rises, with converters wary of building up stock levels amid widespread concerns across the continent around a possible second COVID-19 wave. Despite this, weakness in the import market provided some support domestically, with import material availability limited and less competitive than in earlier months.

In the upstream butadiene markets, the industry-settled contract price for August was agreed July 23 at Eur385/mt, a rise of Eur35/mt from the previous month. The rise was put down to a corresponding increase in feedstock naphtha levels during the month, with producers also pointing to increased price levels in the Asian export market. However, spot material was heard remaining thin on the ground with producers closely managing their systems by co-cracking crude C4 and optimizing LPG use amid a continued weak, though improving market.

In the styrene markets, participants looked to upstream ethylene for guidance with upstream benzene showing less support than expected. Supply for styrene and benzene was heard strong with sellers looking toward the export market for buyers. Summer breaks in many sectors, particularly PS, were heard to be impacting demand.

Platts European ABS Weekly RationaleS&P Global Platts assessed the ABS spot price stable on the week

at Eur1,285/mt FD NWE July 29, amid limited activity ahead of the new month's pricing. The CFR NWE spot price was assessed flat on the week at $1,450/mt, amid stable pricing in NE Asia and in line with a recent indication at Eur1,250/mt CIF ARA. Platts assessed the ABS natural grade contract price at Eur1,385/mt FD Germany, stable on the week, up Eur60/mt from the end of June, and within an indicative range of Eur1,280-1,290/mt.

US ABS: Spot unchanged amid mixed feedstocks�� Spot at 77.5 cents/lb�� ABS traces upstream markets

US acrylonitrile-butadiene-styrene price was unchanged July 29 as feedstock prices were mixed.

Spot ABS was assessed at 77.5 cents/lb ($1,709/mt), stable week on week.

Spot prices have risen 7 cents/lb ($154/mt) since May 6.The assessment is still 13 cents weaker than the year-to-date high

of 90.5 cents/lb on January 15, before the full impact of the COVID-19 pandemic hit.

Upstream, US acrylonitrile rose $10/mt week on week July 28 to $810/mt. US butadiene was 3.5 cents higher on the week to 14 cents/lb or $309/mt on July 24.

US styrene fell $5/mt on the week July 28 to $625/mt.Asian ABS prices were assessed stable on the week at $1,360/mt

CFR China on July 29.European ABS was also stable on the week July 29 at Eur1,285/mt.

Platts US ABS Weekly RationaleS&P Global Platts assessed US acrylonitrile-butadiene-styrene at 77.5 cents/lb on July 29, stable on the week.

There were no fresh price indications for the period.

Asian ABS: CFR China stable, CFR SEA rises�� Support from home appliances weakens�� Buyers cautious amid COVID-19 resurgence

Asian acrylonitrile-butadiene-styrene was stable to firm over July 22-29 to close at $1,360/mt CFR China and at $1,370/mt CFR SEA on July 29.

Weakness was seen in the domestic China ABS market due to demand slowdown in home appliance sector, while producers talked of tightness in dollar-denominated supplies, which supported the CFR China prices.

Low inventory was reported by ABS producers in South Korea and Taiwan and plants kept running at high capacities.

Demand-wise, sales and production of home appliances would likely decline in August, according to producers' production plan.

Although the good performance in refrigerator and color TV sectors would persist in August, the market started to see overall downstream demand weakening. A source mentioned that air-conditioner output in August might plunge by 20% on the month and other sources said the concerns of the COVID-19 also prompted a cut in production at downstream plants.

Elsewhere, Southeast Asia saw demand picking up over the week as downstream plant revved up production. Discussions were also heard to be in a stalemate due to the wide bid-offer gap.

"Buyers are still cautious and worry about the second wave of the pandemic," said a producer.

Upstream, the Asian acrylonitrile market inched up July 21-28, as a major producer in China is planning to delay the restart of their acrylonitrile plants, which led to spot shortage, pushing up indicative bids and offers as a result. The CFR Far East Asia ACN price was assessed up $10/mt week on week at $980/mt on July 28.

The Asian styrene market also saw an upward movement over July 22-29 with CFR China rising $6/mt on the week at $690/mt on July 29. Despite the gains, CFR China styrene remained under pressure from



high inventory, which hovered around the level of 300,000 mt. Meanwhile, domestic operating rates heard over 83%.

ABS production margins fell 5.3% week on week to $344.50/mt, which was still deemed "profitable" by market sources.

Platts Asian ABS Weekly rationaleAcrylonitrile-butadiene-styrene was assessed flat on the week at $1,360/mt CFR China on July 29, based on tradable indication heard between $1,350/mt and $1,370/mt CFR China and below the offer heard at $1,400/mt CFR China.

CFR Southeast Asia was assessed up $10/mt on the week at $1,370/mt, based on tradable indication heard between $1,350/mt and $1,400/mt, and below the best offer heard at $1,400/mt CFR SEA.

POLYETHYLENE TEREPHTHALATE

European PET: Mixed views on August demand�� Tray, sheet sales more positive than beverages�� August negotiations yet to conclude

Two sides of the same coin were seen in the European and UK virgin polyethylene terephthalate markets this week.

Some participants witnessed ample supply in the market, led by weak beverage bottle demand, in turn due to a rise in coronavirus cases across many EU countries, and therefore a lack of travel and outdoor activities expected. Others, however, saw continuing robust demand for virgin resin.

Largely, players in the sheet and tray market were experiencing better sales volumes than the beverage bottle market, and were therefore pulling in more PET volumes.

"Food trays are looking good," a converter said, though they added that there was still "more [resin] supply than we can use."

For participants in this market, a rollover in prices from July was expected, as good demand and increased raw material costs were balanced by ample virgin resin supply in the market.

This ample supply was to an extent due to a lack of demand in the beverage bottle sector. "Demand is weak. Countries close because of increased cases [of coronavirus], not everywhere in EU has good weather, so sales are weak," a bottle converter said.

A producer said that "August starts strong but there still seems to be mixed sentiment as to whether we will see an increase in beverage bottle demand after July."

By July 29, much of the negotiations for August were still being concluded, as buyers sought to draw out the process until a clearer picture becomes available on August demand, sources said.

Platts European PET Weekly RationaleS&P Global Platts assessed Northwest Europe virgin polyethylene

terephthalate spot prices at Eur740/mt FD NWE July 29, down Eur5/mt on the week, in line with corroborated indications at this level and within a range heard at Eur710-Eur760/mt.

The UK virgin spot price was assessed at GBP680/mt FD UK, up GBP5/mt on the week, at the bottom of a range heard at GBP680-685/mt.

NWE net contracts were assessed at Eur740/mt FD, up Eur30/mt on the week and from the end of June, in line with an indication that monthly net contracts were now at parity to spot values.

UK net contracts were assessed at GBP680/mt FD UK, up GBP40/mt on the week and from the end of June, tracking the NWE market.

European Recycled PET: Market remains under pressure�� August holiday shutdowns temper signs of summer season�� Buyers still favour virgin PET on economic benefits

Signs of more positive sentiment in the European and UK recycled polyethylene terephthalate markets appeared to be dashed in the week to July 29, as participants in the virgin resin market looked set to negotiate stable pricing.

Recyclers had been hoping for increase in virgin prices to lessen the premium being paid for recycled PET, and to therefore bolster buyers to switch back from the virgin market.

However, virgin PET prices were stable week on week and, as a result, recyclers and converters reported ample supply of clear and mixed colored flakes and food-grade pellets in the market, as demand looked to be suffering going into August.

"There's plenty of R-PET supply around," a converter said, while a recycler added that "lots of customers will be on holidays and therefore closed. They already have full stocks, too."

Despite the ample supply in the market, there were signs that buyers were willing to pay stable prices from July in order to secure the quality of supply that they needed.

For supply not meeting converter's quality requirements, however, market prices were low, and reportedly far below virgin prices, according to sources.

R-PET price assessments, reflecting higher grade material than these, were stable week on week, with the exception of post-consumer PET bottle bales, where prices dipped Eur10/mt as supply across the chain improved.

Some positive sentiment did remain for August, with one recycler saying that discussions this week showed slightly higher demand. However, this had not yet been translated into sales and therefore had not translated into higher market prices.

Platts European Recycled PET Weekly RationaleS&P Global Platts assessed northwest Europe post-consumer PET bottle bales at Eur400/mt FD NWE July 29, down Eur10/mt on the day and on the week, in line with an indication at this level and talks of increasing supply in the market.

R-PET clear flakes were assessed at Eur800/mt FD NWE, stable on the day and week on week, in line with a buyer and seller indication at this level.

In the UK, clear flakes were assessed at GBP730/mt FD UK, stable on the day and week on week, above a buy indication at GBP700/mt and mirroring stability in NWE.

NWE mixed colored flakes were assessed at Eur670/mt FD NWE, stable on the day and week on week, in line with an indication at this level.

UK mixed colored flakes were assessed stable on the day and week on week at GBP615/mt FD UK, mirroring stability in NWE.



NWE food-grade pellets were assessed at Eur1,290/mt FD NWE, stable on the day and week on week, within corroborated indications at Eur1,250-1,350/mt.

UK food-grade pellets were assessed at GBP1,160/mt FD UK, stable on the day and week on week, above a buyer indication at GBP1,100/mt and mirroring stability in NWE.

US PET: Import resin fall $11/mt as demand remains weak�� Import pricing falls slightly on week; domestic contracts stable�� Market awaits upstream PTA and MEG settlements

US import polyethylene terephthalate market saw slight losses on week in line with crude trends and overseas price stability.

S&P Global Platts assessed import PET resin down $11/mt on the week at $948/mt-$910/mt (43-44 cents/lb), based on pricing indications received at 44-46 cents/lb and 42-43 cents/lb as well as market talk of upcoming downward price pressure amid continuous muted demand.

"Expect lower offers because demand is dropping in Asia," said one market source.

Demand in Asia remains sluggish, especially for the bottle chip market, as export volumes remain limited amid the dearth of outdoor sporting events, concerts, and other typical outdoor summer activities.

The US PET bottle market mirrors the same sentiment. Despite low-cost import resin, with prices nearly 28% below year-ago levels, demand has yet to recover for PET bottles.

However, data from the Department of Commerce showed retail sales in June were up 6.4% from May and up 5% from levels seen this time last year, providing some optimism for the PET fiber and polyester markets. One market source noted that demand from the carpet and yarn industries still remains limited.

In the domestic PET market, contract prices were assessed flat on the week at $970/mt-$992/mt (44 cents/lb-45 cents/lb), on formula-based pricing amid unchanged upstream contract pricing. Market participants expect a slight uptick in July purified terephthalic acid contracts which last settled at 36.62 cents/lb for June.

Platts US PET Weekly RationaleUS import polyethylene terephthalate prices were assessed up $11/mt on the week July 29 at $948/mt-$970/mt (43-44 cents/lb) based off two pricing indications received at 44-46 cents/lb and at 42-43 cents/lb.

US domestic PET was assessed unchanged on the week at $970/mt-$992/mt (44 cents/lb-45 cents/lb), on formula-based pricing amid unchanged upstream contract pricing.

US Recycled PET: Bearish rPET market sentiment amid continued sluggish demand�� California rPET buy activity remains muted�� Limited trucking availability causes rise in delivery fees

The US recycled polyethylene terephthalate market sentiment remains bearish as participants talked of robust supply amid continued muted demand.

In Los Angeles, the post-consumer bottle bale markets were assessed mixed on the day, with premium-grade continuing to hover at 9 cents/lb amid market talk of pricing between 7-10 cents/lb for picked-up material. Supply continues to outweigh demand, despite a rising number of coronavirus cases in the area, which typically translates into less deposit material as more people stay home and hoard recyclables.

"Collectors have more deposit material than companies are buying pretty much," said one West Coast source.

Another source noted that some restaurants, bars, and non-essential businesses are limiting hours of operations, however, "[no one] is hassling any of the recycling centers to close right now."

The curbside market, on the other hand, fell 50 points on the day and on the week to 2.75 cents/lb based on a deal done at 2.50 cents/lb. One market source noted that when bale pricing drops below 2 cents/lb, buyers will start to buy up material to warehouse until demand levels begin to recover.

Elsewhere in the post-consumer bale market, curbside post-consumer bottle bales sourced in Texas were heard to have gained a penny as cases spike in the state, causing many municipalities to again suspend curbside collection amid labor shortages.

The number of confirmed cases in Texas has now risen to approximately 413,000 as of July 29, with the state reporting over 6,500 deaths thus far in the pandemic.

"[There is a] big trucking gap at the border," said one source. "2,700 loads as of last week looking for trucks and regionally very difficult to find trucking into Dallas."

In the Midwest, curbside bale prices remained stable on the day and on the week at 6.50 cents/lb amid market talk of stable pricing between 6-7 cents/lb.

As in Texas, Midwest sources talked of a slight increase in delivery costs, varying by state throughout the region. One Ohio source noted that delivery fees have nearly doubled from the typical 2 cents/lb as truck availability remains limited amid a surge in e-commerce over the last few months.

An Illinois source noted that trucking had only risen about $150 per load, translating into less than a one-cent/lb increase.

However, all participants agreed that demand for rPET fiber, sourced from curbside PET bales, remains limited as the carpet and yarn industries have yet to recover.

Clear hot-washed flake sourced from Southern California has also seen little demand recovery as virgin prices remain at near record-lows.

"Everyone knocking on my door to sell flake to me, but [there's] only so much I can use," said one buyer.

Platts US Recycled PET Daily RationaleSpot PET prices for premium-grade post-consumer bottle bales sourced from the Los Angeles area were stable on the day July 29 at 9 cents/lb amid market talk of pricing between 7-10 cents/lb for picked-up material.

Premium-grades’ curbside counterpart fell 50 points on the day to 2.75 cents/lb based on a pricing indication received at 2.50 cents/lb.



In the Chicago market, PET post-consumer bales sourced from curbside collection were assessed stable on the day at 6.50 cents/lb based on market talk of stable pricing between 6-7 cents/lb.

Recycled PET clear flakes in Los Angeles were assessed at 34 cents/lb, unchanged on the week and on the day, based on pricing indications received at 34.5 cents/lb and 36 cents/lb, as well as market talk of value between 34-35 cents/lb.

This rationale applies to symbols <APCLA00> <APCLB00> <APCCH00>

Asian PET: Fibre grade price up on recovering demand�� Berish Q4 outlook for fiber grade�� Bottle grade forward arrival discussion started

China domestic yarn and fiber grade polyethylene terephthalate prices were higher by Yuan 82-175/mt on July 29, amid recovering demand from textile sector.

Some market sources are holding bearish sentiment, despite the recovery of price, amid high polyester operation rate, and new production capacity coming up in the fourth quarter of 2020.

"Considering current polyester operation rate and demand, the inventory level for both producers and buyers are building up, I can't see strong support from the supply side," said a trader. "In addition, there are a number of new upstream PTA and MEG production capacity coming online in Q4 this year, supply considered to be ample," the trader added.

The China polyester plant operation rate was heard up by 0.51% at 87.61% on July 29, while the operation rate of downstream textile making plants was heard up by 4% at 55.5%. The sale/production ratios were heard lowered by 9.5% on POY day-on-day at 34.7%, according to a market source.

In the bottle chip market, the demand remains sluggish as most of the export volume slows down amid limited outdoor activities due to COVID-19. However, the forward arrival discussions for drinking water bottles have emerged.

"The discussion for forwarding 2021 arrival cargoes were brought up by drinking water buyers from Arica and South America countries," said a producer.

Upstream, PTA CFR China price was assessed up by $2/mt week on week at $437/mt, MEG CFR China price was assessed higher by $11/mt for the same period of time at $437/mt, S&P Global Platts data showed.

Platts Asian PET Weekly RationaleFOB Northeast Asia PET was assessed unchanged week on week at $675/mt on July 29, in line with tradable heard at $650-$690/mt FOB China, amid limited discussion.FOB Southeast Asia PET was assessed flat week on week at $660/mt over the same period, in line with same trend with CFR Northeast Asia amid limited discussion.

China prompt domestic POY150D/48F was assessed Yuan 175/mt higher at Yuan 4,995/mt ex-works, reflecting a tradable discussions heard at Yuan 4,985-5,005/mt.

China prompt domestic DTY150D was assessed Yuan 137/mt up at Yuan 6,420/mt ex-works, reflecting a tradable discussions heard at Yuan 6,340-6,500/mt.

China prompt domestic FDY150D/96F was assessed Yuan 150/mt higher at Yuan 5,565/mt ex-works, reflecting a tradable discussions heard heard at Yuan 5,525-5,600/mt.

China prompt domestic PSF was assessed Yuan 82/mt up at Yuan 5,352/mt ex-works, reflecting a tradable discussions heard heard at Yuan 5,350-5,353/mt.

(Price assessments are found on PCA625)

Asian Recycled PET: falls $10/mt FOB SEA amid weak sales�� Sales remains lackluster, especially for exports�� Demand uncertainties amid fresh outbreak

Market sentiment largely remained bearish for Asian recycled plastics market amid pandemic outbreak and competitive virgin plastics prices.

The recycled polyethylene terephthalate flakes fell $10/mt on week to be assessed at $630/mt FOB Southeast Asia for clear color flakes with PVC content of 50-100 ppm.

Asian sellers who tried to support prices faced resistance from the customers.

“We also have experienced some difficulties to offer recycled PET to the market. [It is] mainly because of weak demands and the downfall price of virgin materials. We have no clear idea how long this condition will last,” an Indonesia trader said.

The demand for recycled PET flakes had not picked up, remaining largely stable domestically, but export volumes seemed low, a Thailand recycler said.

Even though crude oil and virgin plastics prices were firm and stable, the recycled plastics prices did not follow, the recycler added.

Demand from Europe and US for high-end applications stayed weak, while Asian demand from fiber applications was under significant pressure from competitive virgin plastics prices.

China domestic prompt virgin polyester staple fiber with grade 1.4D/38mm was assessed at Yuan 5,352/mt ex-works on July 29, up Yuan 82/mt on week, while virgin PET bottle chips stayed stable at $675/mt FOB NE Asia and $660/mt FOB SE Asia over the same period, based on S&P Global Platts data.

Meanwhile, mixed color recycled PET flakes, with clear and light blue, with PVC content less than 300 ppm was heard discussed at $430/mt FOB SE Asia for fiber applications for August loading cargoes.

Separately, trade participants were concerned about uncertainties amid potential second wave of pandemic outbreak.

Da Nang, the third-largest city in Vietnam, had been in lockdown for 15 days from July 28 amid fresh outbreak.

Platts Asian Recycled PET Daily RationaleAsian R-PET clear flakes was assessed $10/mt lower on day at $630/mt FOB SE Asia on July 29 for clear flakes with PVC content of 50-100 ppm, reflecting the indicative value heard at $600-$680/mt amid bearish sentiment.

Clear flakes with PVC content less than 50 ppm for sheet grade is heard offered at $720/mt FOB SE Asia.

This rationale applies to symbol(s) <RPTSE00>.



Polymer FeedStockS – ethylene glycol aSSeSSmentS (cont)

POLYMER FEEDSTOCKS: OLEFINS

0

200

400

600

800

1000

29-Jul 03-Jul 10-Jun 15-May 20-Apr 25-Mar 02-Mar

CFR FE Asia FD NWE FAS Houston

PLATTS GLOBAL ETHYLENE PRICES ($/mt)

Notes: All olefin prices reflect assessments at close of previous Friday.

Polymer FeedStockS – ethylene

Europe

Spot Friday Weekly Average

FD NWE (Eur/mt) 625.00-630.00 629.000-634.000

CIF NWE ($/mt) 690.50-695.50 707.000-712.000

CIF MED ($/mt) 724.50-729.50 –

Monthly Contract Price (Jul): NA-NA FD NWE (Eur/mt)

US (¢/lb)


FD Mont Belvieu M1 AUG 15.625-16.125 15.325-15.825

FD Mont Belvieu M2 SEP 15.500-16.000 15.300-15.800

FD Choctaw M1 AUG 12.375 12.275

FD Choctaw M2 SEP 12.500 12.400

Net Contract Price (NA ): NA-NA Delivered

Asia ($/mt)


FOB Korea 764-766 –

CFR SE Asia 714-716 714.0-716.0

CFR NE Asia 799-801 799.0-801.0

Asian ethylene spot assessments reflect LC 0-30 days. CFR SEA = CFR Indonesia/Thailand.

Polymer FeedStockS – ProPylene

Europe (Eur/mt)

Poly Grade Spot Friday Weekly Average

FD NWE 685.50-690.50 694.833-699.833

CIF NWE 707.50-712.50 702.167-707.167

Chem Grade Spot Friday Weekly Average

FD NWE 652.50-656.50 –

CIF NWE 622.50-626.50 –

Poly Grade Monthly Contract Price (Jul): NA-NA

US (¢/lb)

Spot Friday Weekly Average dlvd USG dlvd USG

Poly Grade M1 AUG 38.750-39.250 NA-NA

Poly Grade M2 SEP 38.625-39.125 NA-NA

Ref Grade 13.750-14.250 11.350-11.850

Poly Grade Contract Price (NA ): NA-NA Delivered

Chem Grade Contract Price (NA ): NA-NA Delivered

Asia ($/mt)


FOB Korea 779-781 780.7-782.7

CFR Taiwan 834-836 –

CFR SE Asia 789-791 –

FOB Japan 784-786 –

CFR China 824-826 824.00-826.00

Asian ethylene spot assessments reflect LC 0-30 days. CFR SEA = CFR Indonesia/Thailand.

Polymer FeedStockS – ethylene glycol aSSeSSmentS

Europe

Spot Friday

FCA NWE T2 (Eur/mt) 493.00-497.00

FD NWE T2 (Eur/mt) 523.00-527.00

CIF NWE T2 (Eur/mt) 468.00-472.00

CIF NWE T2 ($/mt) 545.00-549.00

Monthly Contract Price (Jul ) – (Eur/mt) NA-NA

US (¢/lb)

Spot Friday

FOB USG A/F* 16.00-17.00

Fiber Grade Monthly Contract Price (NA ): NA-NA FOB USG

Asia ($/mt)


CFR China 430-432 424.6-426.6

CFR SE Asia 433-435 (1) –

MEG CP Nomination (NA) – CFR Asia MEGlobal: NA Sabic: NA Shell: NA

(1) CFR SE Asia = CFR Indonesia.Note: *A/F denotes anti-freeze grade Asian ethylene glycol assessments are basis L/C 90 days.

Polymer FeedStockS – Butadiene

Europe


FD NWE (Eur/mt) 283.00-287.00 255.000-259.000

FOB Rdam ($/mt) 238.00-242.00 182.000-186.000

Butadiene Monthly Contract FD NWE JUL: 350.00-350.00 (Eur/mt)

US (¢/lb)

Spot Friday

CIF USG 13.75-14.25

Monthly Contract Price (NA ) NA-NA

Asia ($/mt)


FOB Korea 419-421 395.00-397.00

CFR Taiwan 464-466

CFR SE Asia 399-401 (1)

CFR China 454-456 426.00-428.00

(1) CFR SE Asia = CFR Indonesia. *A/F denotes anti-freeze grade.



ETHYLENE

European Ethylene: Market stable, awaiting August CPLighter feeds support coastal supplyArbitrage to Asia remains limited

In the European ethylene market, fundamentals remained unchanged as many in the industry went off on their summer vacations while the market awaited the August CP.

Consistent demand in the main derivatives was supported by healthy supply, especially on the coast where lighter feeds allowed for better availability, sources said. "Market is very quiet. Difficult visibility with people out on holiday. Supply is coming back (Wilton, Italy) and the market won't be as tight as it was in June," one source said.

Both FD and CIF NWE spot prices remained somewhat stable in the week to July 24, heard at around an 18%-20% discount to the July CP. No new deals were heard, and going into August, the coastal market was heard getting slightly longer with spot values heard getting closer to a 25%-30% discount to the August CP.

Meanwhile, outside the ongoing Borealis Stenunsgund cracker shutdown in Sweden, the remaining European cracker operations were heard healthy, with producers also taking advantage of more competitive LPG feedstocks, sources said.

As the European key petrochemical feedstock naphtha continued on an uptrend during July, with the average CIF NWE spot prices at $384/mt, up by $42/mt over June averages, it stood also higher by $94/mt over the July CIF NWE propane cargo prices, and $52/mt higher than the butane cargo prices, S&P Global Platts data showed.

Typically, petrochemical crackers consider buying more propane over naphtha once propane reaches at least a $60/mt discount, according to industry sources.

In addition, at the current $715-$800/mt CFR Southeast Asia and Northeast Asia prices, arbitrage for exporting ethylene from Europe remains limited.

Platts European Ethylene Weekly RationaleS&P Global Platts assessed 3-30 days forward European ethylene

spot prices at Eur632.50/mt FD NWE July 24, up Eur1/mt on the day and Eur3/mt on the week.

August CIF NWE prices were assessed at a 20% discount to the August monthly contract price, narrowing by two percentage points from July 17 and within the most repeatable 18-20% range of discounts heard. An August indication at a 25%-30% discount to the August CP was not taken into consideration for the assessment pending further confirmation and taking into account talk of a stable market from the same source. August FD NWE prices were assessed unchanged at a 19% discount to the monthly CP, with feedback of a longer coastal market suggesting a small contango between FD and CIF discounts. July FD and CIF NWE discounts were assessed at parity to August, at 19% and 20%, respectively.

Americas Ethylene: Spot mixed on day, higher on week�� July/August Mont Belvieu ethylene trade at 0.125-

cent backwardation�� Sasol delays LDPE plant restart by one month

US Gulf Coast spot ethylene was mixed July 24 as Mont Belvieu ethylene rose and Choctaw ethylene was stable.

July Mont Belvieu ethylene was 0.375 cent higher on the day and week at 15.875 cents/lb. Forward-month August ethylene rose 0.25 cent on the day to 15.75 cents/lb, widening the front and forward-month spread to a 0.125-cent backwardation. A July/August ethylene trade was heard done at 0.125-cent backwardation MtB-Nova.

Choctaw ethylene for July was stable day on day and 0.875 cent higher week on week at 12.375 cents/lb. Forward-month August Choctaw ethylene was also stable on the day at 12.5 cents/lb, maintaining a 0.125-cent contango.

According to shipping reports, a vessel carrying 9,000 mt of ethylene was fixed to load in Houston between August 10 and 15 and destined for SE Asia. A vessel carrying 11,700 mt of ethylene was fixed to load in Houston in mid August, and another vessel carrying 5,500 mt of ethylene was fixed to load in Houston between August 16 and 18.

Downstream, Indorama Ventures' Clear Lake ethylene oxide/monoethylene glycol plant south of Houston shut because of an operational issue, a company spokeswoman said in an email July 23.

In other plant news, Sasol expects to bring its new 420,000 mt/year low density polyethylene plant in Louisiana online by the end of October, a month later than last planned, according to a notice posted on the company's website on July 23.

Platts US Ethylene Weekly RationaleS&P Global Platts assessed spot Mont Belvieu ethylene for front-month July at 15.875 cents/lb FD Mont Belvieu on July 24, up 0.375 cent on the day.

The assessment took into account a July ethylene bid at 15.625 cents/lb MtB-Nova. Forward-month August Mont Belvieu ethylene was assessed at 15.75 cents/lb FD Mont Belvieu, up 0.25 cent on the day. The assessment was based on a July/August ethylene trade at 0.125-cent backwardation MtB-Nova.

Choctaw ethylene for front-month July was assessed at 12.375 cents/lb FD Choctaw, flat on the day. The assessment came within a July ethylene bid-offer range at 11.75-13 cents/lb Choctaw-Pipe. Forward-month August Choctaw ethylene was assessed at 12.5 cents/lb FD Choctaw, also flat on the day. The assessment kept the previous market structure.

Asian Ethylene: Unchanged amid lack of direction�� Southeast Asia origin cargo heads to Northeast Asia�� Ethylene/Naphtha spread widens on weak naphtha price

Asian ethylene spot discussions remained muted on July 29, amid wide selling and buying indications.

The selling indications were heard at $800-$850/mt while buying indications at $700-$750/mt CFR Northeast Asia for August arrivals.



However, the demand from China buyers remained sluggish, amid healthy domestic supply.

A market source noted the Northeast Asia prices are stronger than Southeast Asia, which may cause Southeast Asia cargoes heading to Northeast Asia. Two cargoes were reported sold by Singapore-based producers, and at least one cargo will be shipped to Northeast Asia.

The spot price in Southeast Asia was mostly hampered by the weak downstream margin, while they mostly receive ethylene from term contract deliveries.

Buyers mostly preferred to discuss trades on a floating price basis because of uncertainty over the near-term outlook, resulting in a largely muted spot trade market.

In upstream, The benchmark C+F Japan naphtha cargo was assessed down by $6.5/mt at $393.875/mt on July 29 Asian close. The Naphtha /ethylene spread was calculated at $406.125/mt, higher than the typical breakeven range of $300-$350/mt, S&P Global Platts data showed.

Platts Asian Ethylene Daily RationaleCFR Northeast Asia spot price was assessed unchanged day on day at $800/mt on July 29, above buying indication at $700-$750/mt, below selling indication heard at above $800/mt, in line with market discussion at $750-$800/mt, amid limited discussion.CFR Southeast Asia price was assessed steady day on day or week on week at $715/mt, in line with market discussion at $715/mt, in absent of firm discussion.

(Daily price assessments are found on PCA550, weekly price assessments on PCA302).

ETHYLENE GLYCOL

European Glycols: Spot stable; August heard picking up�� Ready buyers heard for CIF cargoes�� Demand heard from PET market for August

The European glycols market was largely stable this week, but market participants showed a more bullish sentiment for August for monoethylene glycol, with many already raising FCA NWE offer levels for prompt August delivery.

This demand was being felt primarily on the spot market, which was attracting interest from both the anti-freeze and PET segments in August. The PET industry, in particular, seemed to be pulling material in for August, according to on trader. One source said this was perhaps ahead of expectations that the August MEG CP may rise, following an increase in activity and spot pricing in upstream ethylene and naphtha.

Some tightness was heard on the coastal market this week, with one trader lamenting a lack of available cargoes, since buyers were waiting and willing to pay "strong prices." However, a source said there was "not a lot of volumes coming in in August" and that buyers would have to increase bid levels to secure them. Part of the reason for the lack of volume was put down to limited re-supply from the US and

limited glycol production in the Middle East, which has been curtailed due to limited ethane output from OPEC production cuts.

The diethylene glycol market showed slightly different signs this week, with the market described as largely stable but with less than expected demand. Participants were awaiting a possible uptick in demand and activity from mid-August, however.

Platts European Glycols Weekly RationaleS&P Global Platts assessed the FCA NWE MEG spot price at Eur495/mt July 24, stable on week, below an end of July offer at Eur500/mt and an August 1-7 offer at Eur520/mt, and at the bottom of an August range heard at Eur495-Eur515/mt.

The MEG FD NWE spot price was assessed at Eur525/mt, stable on the week, maintaining a Eur30/mt premium to FCA, in line with an indication that FD Benelux spot prices were at a Eur25-Eur35/mt premium to FCA NWE. The CIF NWE spot price was assessed at Eur470/mt CIF NWE, up Eur5/mt on week, at the low end of a range heard at Eur470-Eur490/mt and amid strong demand heard in the coastal market. The FCA DEG NWE spot price was assessed at Eur450/mt, stable on week, at the top of a Eur430-Eur450/mt range heard and amid stable fundamentals heard this week. The FD NWE DEG spot price was assessed at Eur480/mt, stable on week, mirroring stability in the FCA market.

USGC MEG: Spot prices edge higher on limited availability�� Indorama’s Clear Lake plant shut down�� Spot export MEG availability tightens further

US monoethylene glycol prices were assessed 1.5 cents higher on the week July 24 at 16-17 cents/lb FOB USG , based on indications heard in the market.

Despite the slight uptick in pricing, MEG prices were still at 18-year lows – the lowest level since March 8, 2002, S&P Global Platts data showed.

Indorama’s Clear Lake plant south of Houston, Texas, shut down for two weeks on July 17 due to an operational issue, a company spokeswoman said in an email on July 23. This outage has further contributed to a lack of spot export MEG availability.

Prior to Indorama shutting its plant, Nan Ya Plastics reduced rates at its Point Comfort facility. Lotte Chemical has been shipping MEG from its plant in Lake Charles, Louisiana to its complex in Daesan, South Korea, where a MEG plant has been shut and a second operating at reduced rates since a March explosion.

The CIF Northwest Europe marker was assessed at Eur470/mt, Eur5/mt higher on the week. In Asia, CFR China was assessed $15/mt higher on the week at $434/mt, and CFR Southeast Asia was assessed $12/mt higher on the week at $431/mt.

The US July MEG contract price remained assessed at 22.80-23.30 FOB, up 0.86 cent from the June assessment of 21.94-22.44 FOB. The contract price assessment reflects a 1 cent/lb increase in the July US benchmark contract price, and $20/mt increases in all three July Asia Contract Prices nominated by MEGlobal, Sabic and Shell at $590/mt, $580/mt, and $560/mt, respectively.



Platts USGC MEG Weekly RationaleS&P Global Platts assessed US spot export MEG prices 1.5 cents higher at 16-17 cents/lb FOB USG, based on indications heard in the market.

The US July MEG contract price remained assessed at 22.80-23.30 cents/lb FOB, up 0.86 cent from the June assessment of 21.94-22.44 cents/lb FOB.

The contract price reflects a 1 cent/lb increase in the July benchmark contract price from June, and higher Asia contract price nominations, based on a weighted formula that discounts the North American benchmark price by 15% and the ACP average by 5%, with each segment equally weighted, according to market feedback.

Asia MEG: Slightly down on high inventories in China�� Indian Oil Corp runs MEG unit at low rates�� High water levels along Yangtze River disrupt berthing

Asian monoethylene glycol was assessed down $2/mt day on day at $439/mt CFR China July 29, as inventories continue to stay at high levels.

High water levels along the Yangtze River after heavy rain was disrupting berthing at several key ports, adding to the challenges of suppliers already struggling to offload due to tight ullage, market sources said. The rising water level was aggravating the already oversupplied situation, with the rate of drawdown failing to keep pace with the increase in stockpiles in East China, market sources said.

In plant news, India's largest state-run refiner Indian Oil Corp is running the 250,000 mt/year MEG unit at its Panipat refinery at reduced rates this week due to a reduction in feedstock, a company official said.

Supply from the Middle East was heard to be tight, although there were no confirmed details. Supply was similarly tight in Taiwan, where Formosa Petrochemical was undergoing a turnaround.

Taiwan's Nan Ya Plastics has also shut its 360,000 mt/year No. 1 MEG unit at Mailiao over July 8-August 13 for a catalyst change, a company source said. Its 360,000 mt/year No. 2 MEG unit will undergo a month-long overhaul after the No. 1 MEG plant restarts, and the 360,000 mt/year No. 3 plant will undergo a turnaround from mid-August, the company source added.

Nan Ya's largest MEG production line, the 720,000 mt/year No. 4 unit, was originally scheduled for a month-long overhaul over September 13-October 10, but the company is considering moving this forward. The company's four MEG production lines at Mailiao have a total capacity of 1.8 million mt/year.

ICE September Brent crude oil futures rose 29 cents/b day on day to $43.69/b at 4:30 pm Singapore time (0830 GMT) on July 29, while actively traded September MEG futures on the Dalian Commodity Exchange rose Yuan 44/mt on the day to settle at Yuan 3,721/mt ex-warehouse.

Platts Asian MEG Daily RationaleAsian monoethylene glycol was assessed down $2/mt day on day at $437/mt CFR China July 29 for 15-30 days' forward cargoes of standard 1,000 mt parcel size with 90 days' letter of credit on cargoes traded at $433-$437/mt CFR China.

China's domestic MEG price was assessed down Yuan 10/mt over the same period at Yuan 3,660/mt ex-tank for prompt deliveries up to 10 days forward, on cargoes traded at Yuan 3,650-3,670/mt ex-tank.

(Daily MEG commentaries can be found on <PCA0689> and weekly assessments on <PCA0306>)

PROPYLENE

European Propylene: Prices rise by 5% on week amid tight supply�� Use of LPG limits output�� Market awaits August CP

In the European propylene market, supply shortages linked to lighter feedstock cracking and the ongoing outages along with improved downstream demand perked up prices.

Meanwhile, similar market conditions are expected going into August, while people await the August CP talks.

European polymer-grade propylene spot prices have gained around 5% week on week since July 17, and stood at Eur701.50/mt FD NWE July 24, the highest level since March 23, S&P Global Platts data showed.

"Very tight. But also no one is buying at a premium. Small volumes available for August, offered at premium," one source said. "The reason for tightness seems to be a lot of producers using LPG for feeds, so limited in propylene, overall causing some shortages. Also, CGP looking more balanced now," he added.

Downstream polypropylene demand has been consistently stable during July, with some industry sources attributing this to a new rise in coronavirus cases, pulling additional volumes for food grade PP as well as pharmaceutical applications.

Meanwhile, market participants await further direction in August from upstream and its reflection on monthly contract prices. Cracker run rates are expected to remain healthy as well, as refinery rates are set to continue ramping up, supporting better supply of propylene going into August, sources said.

Looking at feedstocks, as European naphtha continues on an uptrend in July, with the average CIF NWE spot price at $384/mt, up by $42/mt over June averages, it stood also higher by $94/mt over the July CIF NWE propane cargo prices, and $52/mt higher than the butane cargo prices, Platts data showed. Typically, petrochemical crackers will consider buying more propane over naphtha once propane reaches at least a $60/mt discount, according to industry sources.

Platts European Propylene Weekly RationaleS&P Global Platts assessed 3-30 day forward polymer grade

propylene spot prices at Eur701.50/mt FD NWE on July 24, up Eur0.50/mt on the day and up Eur36.50/mt on the week.

July FD NWE PGP prices were assessed flat to the July CP, 7% narrower on the week, in line with a deal heard on July 23 for 1,000 mt for July delivery, which was corroborated by sources. July CIF NWE PGP spot was also assessed at flat to the July CP, 6% narrower on the week, in line with an indication at this level and feedback of tighter



supply. August FD and CIF discounts for PGP were assessed at a 3% discount to the August CP, 4% and 3% narrower on the week, respectively, in line with indications heard for the inland market between a slight premium and up to 5% discount, and flat to CP to a 3% discount indicated for the coast. FD NWE CGP spot prices were assessed at a 9% discount to the July CP, one percentage point narrower on the week, placing the assessment within the indications heard at 8%-10%.

Americas Propylene: Spot rises amid reduced supply�� July PGP trade at 36 cents/lb�� August PGP CP heard nominated at 3-7 cent increase

US Gulf Coast spot propylene rose July 24 as reduced supply amid maintenance pushed prices higher.

July polymer-grade propylene was 2.25 cents higher on the day and 3.75 cents higher on the week at 36 cents/lb FD USG, a nine-month high, according to Platts data. A July PGP trade was heard done at 36 cents/lb MtB-Pipe.

The assessment has recovered more than 93% or 17.375 cents/lb since the 11-year low of 18.625 cents/lb reached March 23, 2020 amid demand destruction from the coronavirus.

Sources attributed the higher prices to propane dehydrogenation unit maintenance. Dow’s PDH unit was undergoing a 45-day planned maintenance that began July 8. Enterprise Products Partners' PDH has been out for most of the week due to an unplanned outage, sources said. The PDH unit had recently restarted July 15 from a45-day maintenance, according to a source familiar with company operations.

Forward-month August PGP rose 2.125 cents/lb FD USG to 35.875 cents/lb FD USG, widening the front and forward-month spread to a 0.125-cent backwardation. A July/August PGP trade was heard done at a 0.125-cent backwardation MtB-Pipe.

The front-month shortage was due to heavy cracking and PDH outages, one source said about the backwardation. "Naturally, the shortage gets better in the future once these units come back," the source added.

Prompt spot refinery-grade propylene was 3 cents higher on the day and week at 14 cents/lb FD USG, an 11-week high, according to Platts data. The assessment has recovered more than 51% or 4.75 cents since the 18-year low of 9.25 cents/lb reached March 31 amid demand destruction from the coronavirus.

This comes as domestic refinery utilization rates fell for the first time in nine weeks, according to the Energy Information Administration. Refinery utilization rates fell 0.2% on the week to 77.9%, EIA data showed July 24.

In contract news, July August propylene contracts were heard nominated between a 3 and 7 cent increase, sources said.

Americas Propylene Weekly RationaleS&P Global Platts assessed spot polymer-grade propylene for front-month July at 36 cents/lb FD USG on July 24, up 2.25 cents on the day.

The assessment was based on a July PGP trade at 36 cents/lb MtB-Pipe. Forward-month August PGP was assessed at 35.875 cents/lb FD USG, up 2.125 cents on the day. The assessment was based on a July/

August PGP trade at 0.125 cents/lb backwardation MtB-Pipe. US prompt spot refinery-grade propylene was assessed at 14 cents/lb FD USG, up 3 cents on the day. The assessment came within a July RGP bid-offer range at 13.75-17 cents/lb MtB-Pipe.

East China propylene down Yuan 100/mt on growing domestic supply�� Chinese buyers shun imports�� Luxi Chemical delays Shandong MTO plant restart to H1 Aug

The Asian propylene market remained stable July 29, as Chinese buyers preferred domestic supply that is now cheaper and available abundantly.

East China propylene was down Yuan 100/mt at Yuan 6,600/mt-ex tank.

A Propylene buyer said that the prices in eastern China was under pressure after two new Propane Dehydrogenation (PDH)plants have come on stream in China lately.

"We have new additional propylene making capacity that exceeds more than 1 million mt/yr coming on stream into east China lately, that has bearing on the price," said the propylene buyer in eastern China.

Zhejiang Huahong New material managed to produce on-specification propylene at its 450,000 mt/year propane dehydrogenation plant at Jiaxing in the eastern Chinese province of Zhejiang last week after coming on stream earlier in July, S&P Global Platts reported earlier.

The company also have a downstream 240,000 mt/yr polypropylene plant at the same site. The new PDH plant will produce propylene feedstock for the polypropylene plant.

Zhejiang Petrochemical managed to produce on-spec propylene at its 600,000 mt/year propane dehydrogenation plant at Zhoushan in the eastern Chinese province of Zhejiang two weeks ago, Platts reported earlier.

The company also started its new 260,000 mt/year acrylonitrile plant on June 23. This PDH plant will produce propylene feedstock for its acrylonitrile and phenol plant.

In plant news, China's Luxi Chemical will delay the restart of its new 300,000 mt/year methanol-to-olefins plant at Liaocheng, Shandong to the first-half of August instead of the second-half of July , a company source said July 29.

The new MTO unit, which came on stream in November, has the capacity to produce 180,000 mt/year of propylene and 120,000 mt/year of ethylene.

It was shut in January due to a technical issue.The plant was initially scheduled to restart in early-February, but

the restart has been rescheduled several times.The company earlier said it would reduce its purchases of

propylene by 180,000 mt in 2020. It purchased 550,000 mt in 2018.Luxi Chemical has three swing plants at the same site that can

produce n-butanol and 2-ethyl hexanol and has a combined output capacity of around 850,000 mt. The company is currently running the swing plants at around 70%-80% of capacity.

Luxi Chemical, a state-owned enterprise, purchases both imported and domestic propylene for the production of n-butanol and 2-EH.



Platts Asian Propylene Daily RationalePropylene was assessed unchanged at $820/mt CFR China July 29, below a tradable indication heard at $830/mt CFR China from a producer, in line with buying indication heard at $800-$810/mt from a buyer.

The FOB Korea price was assessed unchanged day on day at $780/mt FOB Korea, below a selling indication heard at $800-$810/mt FOB Korea from producers.

The domestic Shandong price was assessed unchanged on the day at Yuan 6,600/mt with tradable indication heard at Yuan 6,600/mt ex-tank and the domestic east China price was assessed down Yuan 100/mt on day at Yuan 6,600/mt ex-tank on with tradable indication heard at Yuan 6,600/mt ex-tank.

BUTADIENE

European C4 Olefins: Butadiene contract price settles up Eur35/mt at Eur385/mt�� Stronger price environment in Asia sees rise in export price levels�� Activity in crude C4 market remains muted

The European butadiene contract price for August settled this week up Eur35/mt from July, while prices in Asia continued to rise, creating further flexibility in export prices. S&P Global Platts assessed the European export price FOB Rotterdam at $220/mt July 24, up $50/mt on the week.

The industry-settled European contract price for August settled at Eur385/mt July 23, up Eur35/mt from July. The increase was largely attributed to the continued rise in naphtha levels as well as a stronger price environment in Asia. According to Platts data, the average monthly price of a European naphtha barge CIF NWE to July 23 was up just over $41/mt compared to June.

“Of course we wished for a higher number, but realistically we see demand is picking up but is still not great, so you have to compromise,” a producer said. Some producers said that the demand was indicative of an improving domestic demand picture, though consumers cautioned that the rise was limited to the increase in naphtha given a challenging downstream environment for many.

Elsewhere, in the export market, prices in Asia continued to climb as spot supply in the region remained limited following issues at some producers, including PRefChem Malaysia, which this week delayed the restart of the 180,000 mt/year butadiene unit at its fire-hit Johor refinery from September to early-2021. “Another factor is other regions like US and Latam are not exporting so much as their system is more balanced, Brazil is moving volumes to the US and Mexico instead, which helps,” the producer noted.

However, some in the market were unsure if prices would continue to rise noting the scheduled start of several butadiene units in China later this year. “We don't think it will come down, but if it will keep going up we are not sure. There is new capacity coming online, and downstream demand is uncertain, so don't think it will rocket up much more,” a trader said.

Producers were largely of the opinion that price levels would rise to above $300/mt in the coming weeks noting a CIF ARA deal this week

at $270/mt for a 4,000 mt parcel. However, traders said that with freight rates in the $220-$240/mt range, export prices would remain rangebound in the low-mid $200s/mt.

Limited European spot supply with export prices remaining below naphtha levels was heard to be limiting options for exporters, amid widespread hydrogenation and co-cracking of butadiene across Europe following months of a low-price environment. “For traders who are keen on exporting, it’s a difficult market and that will continue. Co-cracking and hydrogenation are better options for producers than exports at the minute; 0.6 times naphtha for exports does not work and that is where we are,” a second trader commented.

In the crude C4 markets, activity remained muted with material continuing to be co-cracked and little incentive to produce more butadiene for a limited spot market. “Crude C4 is very illiquid at the moment, the value of it is around 0.9 times naphtha but nobody is going to buy at 0.9 times naphtha currently,” the second trader continued.

The raffinate-1 markets saw further activity this week as a deal was heard concluded at 1.23 times naphtha for a 2,000-mt parcel. The raffinate markets have been boosted by an increase in demand from downstream blending operations amid increased driving levels across Europe, though sources noted the market remained well-supplied.

Platts European C4 Olefins Weekly RationaleS&P Global Platts assessed the butadiene FOB Rotterdam

European export price at $220/mt July 24, up $30/mt on the day and $50/mt on the week, below a CIF deal heard at $270/mt and within a range of indications from $200/mt to nearing $300/mt.

The FD NWE European domestic spot price was assessed up Eur35/mt on the week to Eur285/mt, moving in line with the rise in August contract prices and toward a producer’s indication of MCP-10% pending further indications at this level. The crude C4 factor to naphtha was assessed flat on the week at 0.89, below an indication at 0.9 amid limited demand. The raffinate-1 factor to naphtha was assessed flat on the week at 1.23, in line with a deal at this level and within a range of indications heard from below 1.23 to 1.25.

US Butadiene: Spot rises to three-month high�� August CP nominations 2.5-5.5 cents higher�� Spot 55% higher since 34-year low reached May 22

US spot butadiene was 3.5 cents higher on the week July 24 tracing higher prices in key Asian markets and talk of higher domestic spot prices.

This marked the second consecutive weekly increase after seven consecutive weeks of stable pricing and a three-month high for the assessment, according to S&P Global Platts data.

Platts assessed US spot butadiene at 14 cents/lb, or $309/mt, CIF USG, the highest level since April 17, when it was assessed at 19 cents/lb, according to Platts data.

Sources attributed the increase in pricing to reduced supply amid maintenance and a recovering automotive industry.

The assessment has recovered more than 55% or 5 cents since the 34-year low of 9 cents/lb reached May 22 amid demand destruction from the coronavirus.



The assessment is still 32 cents lower than the year-to-date high of 46 cents/lb on January 31, according to Platts data.

Higher spot prices could be seen for August tracing the domestic contract price, sources said. Increased demand from the auto industry ramping back up was expected to continue propping up prices.

July US butadiene contracts settled July 2 at 19.5 cents/lb, a rollover from June contracts, sources said.

The July settlement kept domestic butadiene contract prices at an 18-year low. US butadiene contract prices were last lower than 19.5 cents/lb on April 26, 2002, when they were assessed at 18 cents/lb, according to Platts data.

August US butadiene contract prices were heard nominated 2.5 cents to 5.5 cents higher July 24 compared with July contract prices, sources said.

ExxonMobil was heard to be nominating 5.5 cents higher at 25 cents/lb, while Shell and TPC Group's nominations were heard to be 2.5 cents higher at 22 cents/lb. Market participants were heard awaiting LyondellBasell’s nomination. Producer confirmation was not available.

The nominations — if confirmed at settlement — would lift domestic butadiene contract prices from the 18-year low of 19.5 cents/lb where it has remained for the last two months, according to Platts data.

In Asia, spot prices were $45/mt higher week on week at $455/mt CFR China and $40/mt higher week on week at $465/mt CFR NE Asia on July 24.

Platts US Butadiene Weekly RationaleS&P Global Platts assessed US spot butadiene at 14 cents/lb CIF USG July 24, up 3.5 cents on the week.

The assessment was based higher prices in key Asian markets and talk of higher domestic spot pricing.

The US butadiene contract for July was assessed at 19.5 cents/lb, flat on the week, based on a July contract settlement heard at this level.

Asian Butadiene: Firmer by $40-$60/mt on limited supplies�� CFR China hits fresh 3-month high�� China's June imports hit record-high

Asian butadiene rose $40-$60/mt on July 29, with the CFR China price hitting a fresh three-month high driven by limited supplies.

No deals were heard due to scarce spot availability while price indications continued to move up.

Spot butadiene cargoes were limited in Asia due to lower butadiene production yield amid popular LPG cracking by steam cracker operators.

An arbitrage window from Europe remained open but offer levels were reported to be high at over $500/mt CFR Asia, according to trading sources.

However, some market sources said Asian butadiene market would unlikely shoot up amid narrowing margins for downstream production, notably synthetic rubber.

In related statistics news, China's butadiene imports for June surged 98% to a record high of 77,645 mt from May due to an influx of deepsea cargoes from Europe, latest statistics data showed July 29.

China's butadiene imports for June from the Netherlands was at 20,549 mt, compared to 1,900 mt in May, the data showed. Imports from Belgium was at 6,460 mt in June compared to nil in May, it showed.

In plant news, South Korea's Yeochun NCC does not plan to shut its 220,000 mt/year butadiene unit in Yeosu during the No 2 steam cracker turnaround in the fourth quarter, a company source said on July 29. The source said the butadiene plant will receive crude C-4 feedstock from the No 1 and No. 3 steam crackers at the same location. The butadiene plant operations will be around 90% during the No. 2 cracker turnaround.

Platts Asian Butadiene Daily RationaleCFR China butadiene price rose $40/mt to be assessed at $510/mt on July 29, higher than a buying idea heard at $480-$500/mt CFR China.

CFR Northeast Asia butadiene price jumped $60/mt to $540/mt during the same period based on a tradeable value heard in the mid-$500s/mt CFR NE Asia.

Meanwhile, FOB Korea butadiene price was up $40/mt from the previous day to be assessed at $475/mt on July 29, higher than a buying idea heard at $450/mt FOB Korea.

Prompt-loading tradeable value was heard in the high-$400s/mt FOB Korea.



PARAxYLENE

European xylenes: Demand for Px appears from the US�� MX premiums continue to establish new lows�� No spot demand for xylenes complex in Europe

Premiums of mixed xylenes over Eurobob gasoline continued to slide lower, falling $2/mt on July 29, amid bearish fundamentals.

The availability of the material remained limited in the region, according to sources, but at a similar level to demand. There is no need for MX and there are no bids in the market, a trader said.

Overall, market conditions were heard similar to European toluene, which was experiencing thin demand from blenders amid high naphtha prices.

In downstream, both PX and OX spot prices fell day on day, losing $12/mt and $5/mt, respectively. Some market participants attributed it to a lackluster appetite for spot molecules from European buyers.

Bid-offer ranges for both ortho and paraxylene are around $100/mt, the trader said, adding that consumers are not willing to pay offering prices.

The demand, however, appeared to be coming from overseas. "There are movements [of PX] to US from Europe," another trader said. "There are some trading parties who have contracts with US end-users and cover them by purchasing spot molecules."

Platts European Xylenes Daily RationaleS&P Global Platts assessed the MX CIF ARA M1 August premium to Eurobob gasoline at $26/mt July 29, down $2/mt from July 28, toward value indications heard around a $20-$25/mt premium to Eurobob gasoline.

The MX M2 September premium was also assessed down $2/mt at $26/mt, at parity with August, amid no indications disproving a flat structure between August and September premiums.

M1 August paraxylene was assessed down $12/mt at $480/mt FOB ARA, toward a value indication heard in a $460-$470/mt range, and taking lead from softening spot prices in Asia.

M2 September paraxylene was down $12/mt at $480/mt FOB ARA, flat to August, with no disproving indications heard in the market.

The paraxylene 5-30 day forward spot price was assessed as the average of the period at $480/mt FOB ARA, down $12/mt day on day.

Orthoxylene was assessed down $5/mt at $460/mt amid reports of a minimum offer level at $100-$120 over the MX spot price, as well as a $100 spread between bids and offers for OX.

USGC Paraxylene: Spot prices steady amid continued soft demand�� Spot activity remains absent�� US July CP settles higher

The US paraxylene market remained quiet on the week and spot prices were assessed July 24 at $510/mt FOB USG.

Sources noted that activity was absent and notional pricing continued to be talked in a wide range at $500-530/mt FOB USG. Still firm bids and offers were not seen and no confirmed trades were reported. Participants continued to eye the upstream mixed xylene markets where higher pricing in recent weeks have dented margins for Parex and crystallization unit operators. Mixed xylene prices were

heard lower on the week with trades heard in the low 140s cents/gal. The prompt spot PX-MX spread was last estimated at near $70/mt. In contract, sources reported this week that the July US paraxylene contract settled at 30 cents/lb, up 1.5 cents from June.

USGC Paraxylene Weekly RationaleUS spot paraxylene prices were assessed July 24 at $510/mt FOB USG on notional indications at $500-530/mt and considering gains in Asian pricing.

The July contract was assessed at 30 cents/lb, up 1.5 cents from June..

POLYMER FEEDSTOCKS: AROMATICS

Polymer FeedStockS – aromaticS

Weekly Average Spot*

Styrene FOB Korea ($/mt) 659.90-660.90

Styrene FOB ARA ($/mt) 684.15-684.65

Styrene FOB USG (cts/lb) 28.08-28.58

Styrene FOB USG ($/mt) 624.600

Paraxylene FOB Korea ($/mt) 525.70-527.70

Paraxylene FOB Rdam ($/mt) 483.00-484.00

Paraxylene FOB USG ($/mt) 505.00-515.00

Monthly Contract Price

Styrene FOB USG (cts/lb) (Jul) 26.69-27.19

Paraxylene CFR Asia Average (Jul ) NA

Paraxylene FD NWE (Eur/mt) (Jul) NA-NA

Paraxylene FOB USG (¢/lb) (Jul) 30.00-30.00(Q3)#

* Average prices for week ending previous Friday. # US PX CP are typically settled retroactively, prices refer to most recent settlement. To convert Cts/lb to $/mt, multiply by 22.046.

Notes: All aromatics prices reflect assessments at close of previous Friday.

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FD NWE GPPS (€/mt) Styrene FOB Rotterdam ($/mt)

NWE STYRENICS PRICES

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Asian Paraxylene: Tumbles $9.17/mt on increased bearishness�� Sep/Oct contango widens to $16/mt�� Reliance nominates Aug PX ACP at $640/mt CFR Asia, ExxonMobil

at $690/mt, ENEOS at $650/mt

Asian paraxylene tumbled $9.17/mt on the day at $542.33/mt CFR Taiwan/China and $524.33/mt FOB Korea July 29 amid increased bearishness

The spread between September and October widened to minus $16/mt July 29, from minus $12/mt from July 28, between the best bid at minus $17/mt and best offer at $15/mt heard in the afternoon.

Industry sources noted the possibility of the contango further widening, reflecting the oversupplied market.

Potential run rate cuts at downstream purified terephthalic acid plants due to weakening margins and high stockpiles have also cast further worries in the market, a source said.

Meanwhile, sell interests were seen firmer in the day for both Sep and Oct cargoes.

In other news, ExxonMobil has nominated its August paraxylene Asia contract price at $690/mt CFR Asia, unchanged from its July nomination, market participants said July 29.

Separately, Japan's ENEOS Corp. has nominated its August paraxylene Asia contract price at $650/mt CFR Asia, industry sources said.

Earlier, South Korea's SK Global Chemical and India's Reliance nominated its August PX ACP at $640/mt CFR Asia, S&P Global Platts reported.

Discussions for the July PX ACP ended without a major settlement, while the last major settlement was on August 30, 2019 for the September 2019 contract at $780/mt CFR Asia.

Platts Asian Paraxylene Daily Rationale & ExclusionsAsian paraxylene was assessed down $9.17/mt on the day at $542.33/mt CFR Taiwan/China and $524.33/mt FOB Korea July 29.

The assessment takes the average of H1 September, H2 September and H1 October laycans.

The H1 and H2 Sep laycans were assessed at the pegged level of $537/mt, below an offer from OQ Trading Singapore at $545/mt.

In accordance to the pegged Sep/Oct spread at minus $16/mt, the H1 Oct laycans was assessed at $553/mt, between an Asia origin bid from SK Global Chemical Singapore at $552/mt which was normalized to $549/mt due to restriction in origin and an offer from Yisheng at $573/mt.

Sep/Oct spread widened to minus $16/mt July 29, from minus $12/mt July 28.

The above rationale applies to the following market data codes: "PHASS05" for FOB Korea and "AAQNE00" for CFR Taiwan/China.

(Daily price can be found on PC214, weekly assessments on PC337)Exclusions: No MOC market data was excluded from the July 29,

2020, assessment process.

STYRENE

European Styrene: High trading at odds with wider market�� Strength felt from upstream benzene liquidity�� Players avoiding high stocks: source

Producer interest in styrene spot cargoes continued on July 29 for the European styrene market, with a cargo for any-August loading seen purchased on July 28 at $710/mt.

The trade was higher than bids and offers, therefore sources questioned how relevant it was to the wider market.

Some support on the day for styrene was seen from upstream feedstock benzene.

European prices surged, following increased supply uncertainty in the US that sparked reports of an open benzene arbitrage from Europe to the US Gulf.

This saw European benzene prices surge during the evening trading hours of July 28, and as a result strength appeared in bids and offers in the styrene market July 29.

A reverse auction of 1,500 mt was heard to have been held on July 29, with material sold on an FCA basis, a trader said. He put value of the trade equivalent to $690/mt FOB ARA.

The market had certainly firmed overnight, he said, but players were still cautious and trying to avoid sitting on too much material.

Platts European Styrene Daily RationaleS&P Global Platts assessed styrene for loading five-to 30-days forward at $700/mt FOB ARA on July 29, down 75 cents from July 28, based on the backwardated structure between August and September.

M1 August was assessed up 25 cents at $699.50/mt FOB ARA, based on a curve.

August 3-15 was calculated down at $704/mt, under the offer in a $695-$705/mt bid-offer range for any August and no indications for first-half August.

August 16-31 was calculated up at $696/mt, above the bid in a $695-$705/mt bid-offer range for any August.

M2 September was assessed up $6/mt at $696/mt, above the bid in a $695-$705/mt bid-offer range.

USGC Styrene Monomer:�� Movement to Asia, India heard not possible at current prices�� Polystyrene demand dropped in Q2 as styrene prices rose

US styrene prices decreased during the week ending on July 24 as arbitrage opportunities open in recent weeks closed, shutting off the key driver of stateside demand.

Prompt US styrene was assessed at $625/mt FOB USG on July 25, down $5/mt on the week but up $7/mt on the day. August styrene was assessed at parity with July-loading barrels, increasing $7/mt on the week.

Early week declines in spot styrene prices marked the first in more than three weeks, S&P Global Platts data showed.



The week was volatile, with bids dropping as low as $605/mt FOB USG for August styrene, following trades in the $630s/mt just days earlier. A cargo with an unknown laycan was heard traded July 23 at $525/mt FOB USG, signaling that prices had recovered from those earlier lows.

Weakness in US styrene comes after months of mostly steady price increases, despite lower demand for downstream polystyrene in the US, Platts reported July 24.

Arbitrage opportunities that had been available in recent weeks to Asia and India have shut, traders said.

"I just don't think the economics have been there to move styrene, other than to Turkey and, to a lesser degree, Europe," a trader said July 21.

Platts US Gulf Styrene Monomer Weekly RationaleUS styrene monomer loading in the prompt month was assessed July 24 at $625/mt FOB USG, up $7/mt day on day, considering a trade heard at $625/mt FOB USG with an unknown laycan, and indications of equitable pricing between July and August.

August styrene was also assessed $7/mt higher day on day at $625/mt FOB USG, considering the trade at $625/mt FOB USG heard transacted July 23.

Asian styrene: CFR China up $2/mt on higher domestic discussions�� Jiangsu Leasty raises styrene storage fees�� Upstream FOB Korea benzene surges $16/mt on-day

Asian styrene inched up $2/mt on the day to $690/mt CFR China and $665/mt FOB Korea on July 29, following the rally in the domestic China market amid thin trading.

Trading remained muted in the CFR China market, while the domestic prompt marker rose Yuan 35/mt on the day at Yuan 5,470/mt ex-tank, equating to $678.27/mt on an import-parity basis, despite the pressure from high inventory.

Shore tanks in east China remained full and a source noted an average of 8-10 days of waiting time for vessels to offload, while it may take almost 20 days for cargoes from the Middle East to be discharged.

To speed up cargo movement, Jiangsu Leasty, one of the major commercial tank provides in East China, will also increase storages fees for styrene materials.

Styrene stored less than 15 days will cost Yuan 1.8/mt per day, while for styrene stored beyond 15 days, an additional rate of Yuan 0.2/mt per day will be imposed for the next 15-day block. The new rates will take effect on August 10, according to the company's circular.

In Europe, several purchases have been made by a same producer over the last few weeks at prices around $710/mt FOB ARA.

The purchases have fueled speculation in the market as to if maintenance works are set to begin at a specific production site.

This would line up time-wise with reports of another European producer expected to undertake maintenance on a production line in September, then again in December.

Upstream, the FOB Korea benzene marker jumped $16/mt on the day to $451/mt FOB Korea July 29, following the boost in DDP USG values due to supply tightness arising from unplanned plant troubles. However, the market saw little impact on Asian styrene.

Platts Asian Styrene Monomer Daily RationaleAsian styrene monomer was assessed up $2/mt at $690/mt CFR China and $665/mt FOB Korea on July 29.

The marker takes the average of H2 August and H1 September laycans.

There were no transparent bids or offers during the Platts Market on Close assessment process.

H2 August was assessed at the pegged level of $685/mt CFR China, tracking the price movement in domestic China.

H1 September was assessed at the pegged level of $695/mt, maintaining a $10/mt contango between August and September.

In the East China market, the prompt marker was assessed up Yuan 35/mt on the day at Yuan 5,470/mt ex-tank, equating to $678.27/mt on an import-parity basis.

The FOB Korea marker was assessed at $665/mt, based on the pegged $25/mt spread to CFR China, while the CFR Taiwan marker was assessed at $678/mt, based on the pegged $12/mt spread to CFR China.



PURIFIED TEREPHTHALIC ACID

Asia PTA: Prices fall $3/mt on week�� PTA-PX spread averages $73/mt�� Escalating US-China tensions add to uncertainties

The Asian purified terephthalic acid market stayed rangebound and was assessed $3/mt lower on the week at $437/mt CFR China on July 24.

The PTA-paraxylene spread was calculated to be $73/mt on average in the week started July 19, based on S&P Global Platts data.

Asian PTA fundamentals remained bearish amid high stocks and an uncertain demand outlook.

Trade participants were closely monitoring the escalating US-China tensions, which could add further bearishness to the already challenging environment, sources said.

Both Chinese and Indian PTA customers were staying at the sidelines, with limited demand.

A few northeast Asian PTA producers had decided to cut operating rates in July and August to manage PTA stocks.

It was better to cut runs than sell at a loss in the spot market for the CFR China prices, a northeast Asian producer said.

In addition, a few Chinese PTA plants, with a total capacity of around 3 million mt/year, planned to shut for maintenance in August, according to sources.

However, this was too little to make a change to the current bearish PTA fundamentals, and larger scale PTA production cut was required to sustain the market, sources said.

In downstream, the Chinese polyester sector continued to run at around 86%-87% of total capacity in the week started July 19, a source said.

Meanwhile, it would still take at least one to two months to see any improvement along the polyester chain in India, another source said.

Turkish PTA customers were heard asking for floating price of CFR Turkey at CFR China plus $40-$50/mt.

There were buying enquiries from Turkey, but the bids were too low to be accepted, a producer added.

Upstream paraxylene faced high stocks as well. PX buyers had been requesting for cargoes to arrive later in the month, post-declaration, while producers were looking to load at the earliest possible laycan for inventory management purposes, resulting in an "operational mess," market sources said. But this was no surprise to market participants as this issue has been recurring for months, exacerbating market frustrations.

The Asian PX-naphtha spread averaged $151.675/mt in the week started July 19, based on Platts data.

Platts Asian PTA Weekly RationaleThe PTA CFR China marker was assessed up $2/mt day on day, or down $3/mt on the week, at $437/mt on July 24, following the adjacent marker amid limited spot discussions.

China domestic PTA was assessed Yuan 15/mt higher day on day, or Yuan 25/mt higher on the week, at Yuan 3,510/mt, reflecting tradable discussions heard at Yuan 3,500-3,520/mt.

CFR India marker assessed up $2/mt day on day, or $3/mt lower on the week, at $456/mt, maintaining the spread to CFR China marker at $19/mt, reflecting an indicative value of $19-$20/mt for the CFR India/CFR China spread.

The CFR SEA marker was assessed down $3/mt at $445/mt following the CFR China marker.

(Asian PTA weekly price assessments are found on PCA179, daily price assessments on PCA737)

POLYMER FEEDSTOCKS: INTERMEDIATES

($/mt)

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24-Jul 26-Jun 29-May 30-Apr 03-Apr 06-Mar

PTA CFR China PX CFR Taiwan

PLATTS ASIAN PTA vs PARAXYLENE

Polymer FeedStockS – intermediateS

Weekly Spot

PTA CFR China ($/mt) 434.40-436.40

PTA CFR SE Asia ($/mt) 444.0-446.0

PTA CFR India ($/mt) 453.4-455.4

EDC CFR FE Asia ($/mt) 274-276

EDC CFR SE Asia ($/mt) 269-271

EDC FOB NWE ($/mt) 198-202

EDC FOB USG ($/mt) 190-200

VCM CFR FE Asia ($/mt) 649-651

VCM CFR SE Asia ($/mt) 694-696

VCM FOB NWE ($/mt) 448-452

VCM FOB USG ($/mt) 520-530

Acrylonitrile CFR FE Asia ($/mt) 979-981

Acrylonitrile CFR SE Asia ($/mt) 979-981

Acrylonitrile CFR South Asia ($/mt) 894-896

Acrylonitrile FOB USG ($/mt) 825-835

Acrylonitrile CIF ARA ($/mt) 868-872

Monthly Contract Price

PTA FD NWE (Eur/mt) (Jul) 470-480

PTA Delivered USG (¢/lb) (Jun) 36.62-36.62

VCM Delivered USG (¢/lb) (Jul) 45.00-47.00

Global ACN, European and US prices of EDC and VCM reflect assessments at close of Tuesday. PTA CFR China and PTA CFR India prices reflect average prices for week ending previous Friday. All other intermediates prices reflect assessments at the close of previous Thursday. US domestic prices reflect transaction pricing for medium-sized customers.



ACRYLONITRILE

European Acrylonitrile: Market awaits upstream C3 settlement�� Slow European spot market�� European holiday season impacts demand

Spot market activity in northwest Europe remained muted in the week to July 28, with the European summer holiday season denting demand recovery and price levels in the spot market remaining unattractive to local sellers.

Attention in the wider European ACN market has turned to feedstocks, with market participants awaiting the outcome of the August industry-settled propylene contract price.

Firmer upstream naphtha pricing in July, compared to June, and uncertain downstream demand provide conflicting arguments as August propylene contract price discussions evolve.

Nevertheless, demand for August has been dampened by the European summer holiday season.

Although weaker summer demand in Europe is in line with seasonal expectations, the coronavirus pandemic has led to 2020 being an atypical year.

One producer said demand has been rising since May, and following the August summer holiday season, a return to demand growth is expected as the market continues to recover from the impact of measures put in place earlier in the year to curb the spread of the virus.

The same producer said current production rates remain below normal levels.

Platts European Acrylonitrile Weekly RationaleS&P Global Platts assessed CIF ARA acrylonitrile spot prices

unchanged on the week at $870/mt July 28, near the top of a $830-$880/mt CIF ARA indicative range and taking into account talks of limited activity in the week.

US Acrylonitrile: Spot continues to rise�� Participants await upstream contract settlement�� Pricing follows stable to firmer global markers

US spot acrylonitrile continued to climb the week of July 28 amid market expectation for higher August pricing amid higher feedstock costs and tracking a hike in key Global markets.

US spot was assessed $10 higher at $830/mt FOB basis in line with pricing talked for the week. Pricing was talked in a range and as high as $840/mt FOB basis. The uptick marked a second consecutive increase. The marker has gained $30 since July 14.

Market sentiment is that pricing would continue to rise in the short term amid the ongoing chemical-grade propylene contract settlement for July.

Elsewhere, the increase tracked a $10 hike in the CFR FE Asia marker at $980/mt amid tight supply in China.

In Europe, the CIF ARA acrylonitrile was flat at $870/mt July 28.

Meanwhile, the domestic ACN market, contract prices were assessed flat at 42.25 cents/lb ($931/mt). The assessment follows an industry-accepted formula incorporating the settled June chemical-grade propylene price at 25 cents/lb ($551/mt) and the ammonia contract price at $205/mt.

Platts US Acrylonitrile Weekly RationaleUS acrylonitrile was assessed at $810/mt, up $10 week on week July 28 on higher pricing talked and tracking a $10 hike in Asia at $980/mt CFR FE Asia.

The domestic ACN contract was assessed flat week on week at 42.25 cents/lb ($931/mt) delivered. The assessment was based on an industry-accepted formula incorporating the June chemical-grade propylene settlement at 25 cents/lb ($551/mt) and the lower ammonia contract price settlement of $205/mt. Contract pricing for July has not settled at time of publication.

Asian ACN: CFR Far East Asia up $10/mt on tight spot supply in China�� Jiangsu Sailboat to delay MTO unit restart to around Aug. 5�� Asahi Kasei nominates Aug ACN CP at $1,090/mt, down $50/mt

The Asian acrylonitrile market inched up July 21-28, as a major producer in China is planning to delay the restart of their acrylonitrile plants, which led to spot shortage, pushing up indicative bids and offers as a result.

China's Jiangsu Sailboat Petrochemical is delaying the restart of its methanol-to-olefins unit until August 5 at the latest, a company source said July 28, following an unplanned shutdown of the unit July 16 due to a technical issue.

Jiangsu Sailboat had earlier said it planned to restart the MTO unit, which has nameplate capacity of 460,000 mt/year of propylene and 380,000 mt/year of ethylene, by July 31.

Due to the shutdown of the MTO unit, the company also shut both of its 260,000 mt/year acrylonitrile plants at Lianyungang.

The MTO unit provides propylene feedstock for the acrylonitrile plants.

"We will restart the ACN plants with the MTO," said the source.ACN prices in China have tumbled since February, initially on weak

downstream demand and then due to the coronavirus pandemic hammering buying interest — particularly in Europe and the US, the main consumers of downstream ABS products such as white household appliances.

The ACN CFR Far East Asia price hit an 11-year low of $860/mt on April 28.

Some buying has returned since May due to tighter spot supply as Chinese and international ACN producers lowered operating rates or carried out planned turnarounds in May and June, sources said.

Upside momentum was lost after Zhejiang Petrochemical started its new 260,000 mt/year ACN plant on June 23, adding supply and, in turn, pressure on spot prices, but Sailboat's shutdown of its two ACN plants on July 16 lent support to the market.



The CFR Far East Asia ACN price was assessed up $10/mt week on week at $980/mt on July 28. Meanwhile, demand from Indian buyers remained thin during the week ended July 28.

Sources said offer prices for India have gone up due to supply issues in the international market, but demand had taken a beating due to the economic slowdown.

According to industry estimates, India’s ACN imports fell to 5,000 mt in July compared to 9,500 mt a year ago. India’s ACN demand is likely to remain depressed in the coming weeks, as downstream demand for acrylic fibre was barely half of normal even though this is usually the peak demand season.

"In India, ACN demand is bad, and 'bad' is a nicer way of putting it. Industry-wide demand is not even 50% of usual," a buyer said.

The spread between CFR Far East Asia and South Asia stood at $85/mt on July 28, up $10/mt from $75/mt the week before.

Japan's Asahi Kasei, the world's second-largest acrylonitrile producer, nominated its Far East contract price for August at $1,090/mt CFR, down $50/mt month on month, a company source said July 28.

"I think the Sailboat shutdown only helped to stem the fall in domestic prices in China. There is still a supply glut in the seaborne market," another Asian major producer said, adding that oversupply in the Asian market will continue to heap pressure on the spot price in August.

Platts Asian ACN Weekly RationaleCFR Far East Asia ACN was assessed up $10/mt on the week at $980/mt July 28, in line with tradable indications heard at $980-$1,000/mt CFR Far East Asia.

CFR Southeast Asia ACN was assessed up $10/mt on the week at $980/mt during the same period on a stronger adjacent market.

Meanwhile, CFR South Asia ACN was assessed unchanged at $895/mt July 28,

with tradable indication heard at $895/mt CFR South Asia.

ETHYLENE DICHLORIDE, VINYL CHLORIDE MONOMER

European Chlor-Alkali, EDC/VCM: FOB NWE caustic falls to $200/dmt on supply overhang�� Caustic exports dominate to US East Coast�� EDC export price up $10/mt on higher demand

In the European caustic soda market, price pressure continued both in NWE and the Mediterranean amid the supply overhang exasperated by softer demand.

The NWE industry has almost concluded the Q3 contract price discussions, and some decreased prices were heard, while producers kept actively exporting the excess to keep the balance in the domestic market, sources said.

"Caustic spot around $200/dmt as FOB outside Europe. European manufacturers are united to remove tank overspill to far-away destinations," one source said.

"Europe is long, a lot of activity going to export now. Some people are being very aggressive in the market," another source said, adding

that "looking at further business, it has to be lower prices, in Q3 both volumes and prices could come down a bit".

In the Mediterranean, limited activity was heard partially due to a holiday season as well as lacking interest from buyers, who waited on the sidelines until later in August for better direction in the market, sources said. Market prices were heard in the range of mid-high $200s/dmt CFR Med, but no fixtures were reported.

Regarding EDC, supply was heard tighter with most volumes feeding into PVC production, and spot activity was lacking. "EDC is tight in Europe while VCM is long," one source said.

S&P Global Platts assessed FOB NWE EDC prices up $10/mt on July 28 at $200/mt, closer to the offer levels heard at $220-$230/mt. Meanwhile, the VCM market remained uneventful with stable prices, assessed by Platts at $450/mt FOB NWE on July 28.

"This month has been a roller coaster for VCM spot trade in Europe. Still small tons get moved to far-away destinations such as Vietnam. At the same time European demand is muted," a source said. According to traders, VCM prices in Asia are expected to be stable in August and September, similar to July to support potential business from Europe.

Platts European Chlor-Alkali, EDC/VCM Weekly RationaleS&P Global Platts assessed FOB NWE caustic soda spot prices at

$200/dmt on July 28, down $10/dmt on the week, in line with a deal heard at this level, within a range heard at $180-$210/dmt amid length in the market.

The CFR Med price for caustic soda was also assessed down $10/dmt on the week, at $280/dmt reflecting an indication at mid-high $200s/dmt amid muted market activity and softer prices in Northwest Europe. European EDC prices were assessed up $10/mt on the week at $200/mt FOB NWE, moving closer to offer levels heard at $220-$230/mt and partially tracking an increase in Asian prices. European VCM was assessed stable on the week at $450/mt FOB NWE amid a lack of fixtures.

US EDC/VCM: Export EDC, VCM prices strengthen�� Spot EDC availability seen nil�� VCM rises alongside downstream PVC

EDC: US export ethylene dichloride prices were assessed up $50/mt on the week July 28, reflecting stronger pricing indications amid a dearth of available spot supply.

Prices were assessed at $190-$200/mt FOB USG.Market sources said integrated producers have been keeping all

EDC output internal for downstream polyvinyl chloride productions, seeing a better return from strengthening PVC prices. Sources also said Olin, the sole producer with no downstream PVC operations, has sought to lock up EDC output in contracts to avoid more volatile spot markets.

US spot export EDC prices have whipsawed this year from a 2020 high of $280/mt FOB on March 24 to $65/mt FOB by April 21, an all-time low since S&P Global Platts began assessing EDC in June 1996. That crash came as demand for upstream chlorine and downstream PVC



cratered amid widespread shutdowns in April to stem the spread of the coronavirus pandemic.

Producers slashed chlor-alkali rates to 68% in April from 90% in March, according to industry statistics. In May, rates rose to 75%, but retreated to 72% in June on a combination of Formosa Plastics USA's turnaround at its 736,000 mt/year chlor-alkali plant in Texas and continued reduced rates among producers as economies slowly began reopening.

"Completely no cargo available," a source said of spot EDC. "Though some customers indicate $200/mt FOB, suppliers give them no feedback due to no cargo available."

Another source said EDC prices would have to rise further to entice spot deals, but uncertainty of whether further COVID-19 spread could undercut PVC strength in the coming months has producers focused on PVC through August, when supply is expected to remain tight.

In Asia, the CFR Far East Asia marker was last assessed July 23 up $15/mt from the prior week at $275/dmt, while the CFR Southeast Asia marker was flat at $270/mt. In Europe, EDC prices were assessed up $10/mt on the week July 28 at $200/mt FOB NWE.

VCM: US export vinyl chloride monomer prices were assessed up $40/mt on the week July 28, tracking stronger downstream PVC prices.

VCM prices were assessed at $520-$530/mt FOB USG.PVC prices have been strengthening on tight supply stemming

from continued reduced rates as well as Formosa Plastics USA's July turnaround at its 513,000 mt/year PVC plant in Baton Rouge, Louisiana. Westlake Chemical also has an ongoing outage of a VCM line at its Lake Charles, Louisiana, complex. Multiple mid-July deals at $750/mt FAS Houston pushed prices up from the settled July level of $710/mt FAS. A producer on July 23 nominated August pricing at $790/mt FAS, and negotiations were ongoing.

Nearly all US export VCM is sold on contract in Colombia, Mexico and Canada, leaving very little available for spot deals. As such, spot VCM pricing tends to move in tandem with downstream export PVC, per market feedback.

US VCM prices were assessed unchanged on the week July 28 at 45-47 cents/lb delivered, tracking stable downstream PVC prices.

In Asia, VCM was last assessed July 23 unchanged from the prior week at $650/mt CFR Far East Asia and $695/mt CFR Southeast Asia.

In Europe, VCM prices were assessed flat on the week July 28 at $450/mt FOB NWE.

Platts US EDC/VCM Weekly RationaleEDC: US export EDC prices were assessed up $50/mt on the week July 28 to $190-$20/mt FOB USG based on higher pricing indications amid a lack of volume availability.

VCM: US export VCM prices were assessed up $40/mt on the week July 28 at $520-$530/mt FOB USG, tracking stronger downstrream PVC prices. US VCM was assessed unchanged on the week at 45-47 cents/lb delivered, also tracking stable downstream PVC contracts.

Asian EDC/VCM: EDC up by $15/mt on tight supply�� Less arbitrage opportunity for EDC�� Direction unclear for VCM

EDC: Asian Ethylene Dichloride spot discussions were heard stronger, amid tight supply from local and the US producers.

The last traded deal was heard at $275/mt CFR Far East Asia, mid-August arrival for 3,000 mt. The number of offers heard were limited amid tight supply from the local producers.

"The local Asian supply considered to be tight, amid weak caustic soda prices and lower EDC operations, which leads to higher selling indications," said a trader.

The strong upstream ethylene prices have driven firmer EDC prices. Asian ethylene price was assessed at $800/mt CFR Northeast Asia and $715/mt CFR Southeast Asia on July 23, S&P Global data shows.

The US origin deepsea cargoes, on the other hand, were heard with higher selling indications amid tight supply.

"The US cargoes are not likely to come over to Asia, considering FOB USG price hit almost $150/mt or higher. Chinese buyers are not likely to able to afford with an additional 25% tariff," a trader said.

In the US, the EDC price was assessed unchanged on the week on July 21 at $140-150/mt FOB USG, S&P Global Platts data showed.

VCM: Asian vinyl chloride monomer market discussion limited, while almost all August arrival demand had been fulfilled.

A market source noted some deals for September arrival cargoes had been concluded, with a floating price basis.

"Some buyers started to buy September arrival cargoes, with a floating price basis. It's too early to determine the fixed price of the cargo now," a trader said.

The September arrival deals were heard mostly concluded at flat to benchmark.

The sentiment was not clear with China hit by floods. The country's infrastructure sector has been hit, which has led to expectations of weaker polyvinyl chloride demand from China.

In the US, the VCM price was assessed unchanged on the week on July 21 at $480-$490/mt FOB USG, Platts data showed.

Platts Asian EDC/VCM Weekly RationaleEDC: Spot prices were assessed up by $15/mt week on week at $275/mt CFR Far East Asia, tracking last deal done at $275/mt CFR Far East Asia, mid-August arrival for 3,000 mt, above tradable value from buyer at $250/mt and in line with market discussion at $275/mt. CFR southeast Asia was assessed flat week on week at $270/mt, tracking last done deal at same level.VCM: Spot prices were assessed unchanged at $650/mt CFR Far East Asia, in line with market discussion at $630-$665/mt. CFR southeast Asia was assessed flat week on week at $695/mt, tracking same trend with CFR Far East Asia amid muted discussion.

(Asian EDC/VCM price assessments are found on PCA183)



POLYMERSCANContact Platts support:

E-mail: [email protected]; Americas: +1-800-752-8878; Europe & Middle East: +44-20-7176-6111; Asia Pacific: +65-6530-6430

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METHYL METHACRYLATE

Asian MMA: CFR China prices rebound; CFR SEA in the doldrums�� Heavy turnarounds in China tightens MMA supply�� New MMA startups in China to add lengthy supply

Asian methyl methacrylate (MMA) CFR China marker rose $5/mt on the day and up $8/mt on the week at $1,228/mt on July 29, driven by the tighter supply in China due to on-going massive turnarounds and regains in the China domestic MMA prices.

In China, massive turnarounds continued, with around 700,000 mt/year of MMA plants heard to have idled in July, which accounts for about 26% of the total MMA capacity in the country.

Jiangsu Sailboat's 170,000 mt/year of MMA plant has shut in mid-July for about 15 day-long maintenance, while Shandong Yidali's

50,000 mt/year of MMA plant has been shut during the similar period for scheduled maintenance.

Heze Huali New Materials' 50,000 mt/year of MMA plant has been idled since mid-July for 10-to-15 days of turnaround, according to market sources.

On the back of the heavy maintenance, the domestic China MMA price slightly recovered with rising Yuan 8.33/mt, or 0.185% on thr week at Yuan 9,833.33/mt, which is equivalent to around $1,168.95/mt on an import parity basis. Nevertheless, the market sentiment in China remained sluggish.

"MMA [China] domestic market remains weak," an MMA trader based in North China said on July 29, adding that, there is a flurry of new MMA capacity coming on stream August onwards.

There were also oversupply concerns on the MMA market pressured by the new capacity additions.

GLOBAL PRODUCTION UPDATE Company Location Capacity* Timing Status

kt/yr

HMEL Bhatinda, India 450,000 HD 2021 BN

JG Summit Batangas, Philippines 250,000 HD Early 2021 BN

Formosa USA Point Comfort, TX 400,000 LD Aug-20 New capacity

LyondellBasell La Porte, TX 550,000 HD Q1 2020 New capacity

Sasol Lake Charles, LA 420,000 LD Sep-20 SU

Formosa USA Point Comfort, TX 675,000 HD Jul-Sep 20 PL

Formosa USA Point Comfort, TX 200,000 HD Oct-20 PL

SK Global Ulsan, South Korea 210,000/190.000 LLD/HD Oct-20 PL

Zhongke Refinery Zhanjiang 350,000 HD Q2-Q3 2020 BN

TA = scheduled turnaround; SD! = unplanned shutdown; SU = startup; DB = debottlenecking; OR = operating rate



As Platts reported, Zhejiang Rongsheng's new 90,000 mt/year of MMA plant has started its trial runs in early-July and will likely to begin the commercial operation in August, while around 350,000 mt/year of new MMA capacities are coming online in Shandong area in China in the second-half of this year.

The exact start-up details were not confirmed by the companies when contacted. Once all new MMA plants come on-line, the total MMA capacity in China will reach around 1.92 million mt/year, which accounts for around 45.42% of the total MMA capacity in Asia.

In Southeast Asia, CFR SEA MMA marker was unchanged over the same period at $1,275/mt, with no transparent indications were heard amid thin liquidity due to the long holiday in Japan.

On the shipping front, a 1,000-mt MMA cargo from South Korea arriving in China in the end-July was seen.

The downstream PMMA market is currently not good, which might have prompted the Korean MMA producers to sell the feedstock to China, a Chinese trader said on July 29.

Platts Asian MMA Daily RationaleAsian methyl methacrylate (MMA) CFR China marker rose $5/mt day on the day and up $8/mt week on week at $1,228/mt on July 29, notionally tracking a firmer China domestic market, which was up 2.08% on-day.

CFR China MMA marker was the average of H1 Aug and H2 Aug, in the absence of valid indication.

In theChina domestic market, MMA price was heard at Yuan 9,833.33/mt, which is equivalent to around $1,168.95/mt on an import parity basis, up 2.08% on-day and up 0.085% on the week.

PMMA CFR China price was heard at $1,450-$1,500/mt levels, which means the PMMA/MMA spread is above the typical breakeven of around $550-$600/mt.

CFR SEA MMA marker was unchanged over the same period at $1,275/mt, with no transparent indications were heard.

This rationale applies to symbol(s) <AMMAC00> <AMMAS00>

SUBSCRIBER NOTES (continued)

Platts changes frequency of European virgin HDPE spot assessments to dailyFollowing market consultation, S&P Global Platts has changed the frequency of its free delivered northwest Europe and FCA Antwerp high-density polyethylene spot price assessments from weekly to daily, effective July 29, 2020.The change follows a proposal published on June 3, 2020, in a subscriber note available here: http://plts.co/H11W30qRDuhThe proposed change was confirmed on June 22, 2020, in a subscriber note available here:http://plts.co/Rceh30qZKACThe move to daily frequency aligns with daily coverage of the virgin low density and linear low density polyethylene and recycled HDPE spot markets.The daily assessments of blow molding, injection and film grade HDPE in Eur/mt take into consideration price information gathered up to the close of the assessment process at 16:30 London time and continue to reflect delivery within 3 to 30 days from the date of publication.The change affects the following:HDPE B/Mldg FD NWE: AALUF00HDPE B/Mldg FCA Antwerp: AAVKE00HDPE Inj FD NWE: AALUD00HDPE Inj FCA Antwerp: AAVKD00HDPE Film FD NWE: AALUH00HDPE Film FCA Antwerp: AAVKF00Platts continues to publish a weekly commentary and rationale every Wednesday and has introduced new weekly averages calculating from Thursday to Wednesday.The new weekly averages are found under the following codes:HDPE B/Mldg FCA Antwerp Eur/mt WAvg: AAVKE04HDPE B/Mldg FD NWE Spot Eur/mt WAvg: AALUF04HDPE Film FCA Antwerp Spot Eur/mt WAvg: AAVKF04HDPE Film FD NWE Spot Eur/mt WAvg: AALUH04HDPE Inj FCA Antwerp Spot Eur/mt WAvg: AAVKD04HDPE Inj FD NWE Spot Eur/mt WAvg: AALUD04Platts European HDPE assessments appear in Polymerscan, on Platts Petrochemical Alert pages 272, 239 and 573 and in the Platts price database. The daily assessments also appear on Platts Petrochemical Alert page 571.Please direct any questions or comments to [email protected] with copy to [email protected] provide a clear indication if written comments are not intended for publication by Platts for public viewing. Platts will consider all comments

received and will make comments not marked as confidential available upon request.

Format change for Petrochemicals publicationsS&P Global Platts wants to make sure our newsletter subscribers have access to the news as soon as it's published.In order to make sure that our subscribers always have the most up-to-date news available, starting July 17 Platts will move Petrochemical news from our newsletters to Platts Market Center.Platts Market Center is a free service to our newsletter subscribers. If you haven’t logged in, go to https://pmc.platts.com, use the email associated with your subscription, and follow the prompts to login for the first time or to reset your password. Alternatively, if you are a Platts Petrochemical Alert (PCA) subscriber, you can find all the news on PCA0100.Subscribers can also opt to subscribe to a daily news email. For instructions, or if you have any questions about this change, please contact our Client Services team at [email protected].

S&P Global Platts launches daily post-consumer mixed HDPE bales assessment for Northwest EuropeS&P Global Platts has launched a daily post-consumer mixed HDPE bales assessment for Northwest Europe, in light of increasing consumer demand for recycled plastic, effective July 1, 2020.The assessment has the following specifications:Basis: Free delivered Northwest Europe (Eur/mt) Northwest Europe includes Germany, Benelux region and Switzerland. Indications from other regions may be taken into consideration for the assessment and normalised.Standard spot cargo size: Minimum 18 mt lotsSpecification: Post-consumer mixed HDPE bales containing a minimum of 80% mixed colored HDPE by weight. Typical impurities, such as LDPE and PP, should not amount to more than 20% by weight.The new assessment is listed under the following symbols:Symbol description SymbolPost-consumer mixed HDPE bales FD NWE (Eur/mt) APCHA00Post-consumer mixed HDPE bales FD NWE (Eur/mt) WAvg APCHA04Post-consumer mixed HDPE bales FD NWE (Eur/mt) MAvg APCHA03The assessments are published on Petrochemical Alert page PCA503, PCA574, PCA441, in Polymerscan, Platts Platform, Platts Market Center and in Platts' price database.Please direct any questions or comments to [email protected] with a

http://plts.co/H11W30qRDuh



SUBSCRIBER NOTES (continued)

copy to [email protected] written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing.Platts will consider all comments received and will make comments not marked as confidential available upon request.

S&P Global Platts launches assessment for US Recycled PETS&P Global Platts has begun publishing spot price assessments for US recycled polyethylene terephthalate hot-washed clear flakes effective July 1, 2020.This assessment follows the April 1, 2020 launch of spot price assessments for US recycled bottle bales, and continues to expand Platts' coverage of the recycled polymers markets in the US.The recycled PET assessment reflects clear flakes traded in the US West Coast, normalized to a FOB Los Angeles basis, for loading 3-30 days forward. The assessment reflects spot transactions with a typical volume size of 1-5 truckloads (approximately 40,000-200,000 lbs). Material should have an intrinsic viscosity between 0.70-0.80 and a PVC content no higher than 100 ppm. Platts may also take into consideration US recycled PET of other specifications and may normalize price information to the standard

specifications reflected for the assessment.The assessments are published in US Polymerscan, on Platts Market Center and the on Platts Petrochemical Alert under the following symbols:ARPLA00 Recycled-PET Clear Flake FOB Los Angeles cts/lbARPLA03 Recycled-PET Clear Flake FOB Los Angeles cts/lb MAvgARPLA04 Recycled-PET Clear Flake FOB Los Angeles cts/lb WAvgARPLB00 Recycled-PET Clear Flake FOB Los Angeles $/mtARPLB03 Recycled-PET Clear Flake FOB Los Angeles $/mt MAvgARPLB04 Recycled-PET Clear Flake FOB Los Angeles $/mt WAvgAdditionally, market commentary for the recycled PET market can be found on PCA page 1542. Market commentary for the recycled bottle bales markets has been moved from the current PCA 1552 to this page as well.For questions or comments, please email [email protected] and [email protected]. For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing.Platts will consider all comments received and will make comments not marked as confidential available upon request.



Assessment rAtionAleThe daily and month ahead hydrogen assessments are valuations that incorporate fixed capital and operating costs and variable natural gas, electricity, and carbon prices. Details on hydrogen methodology can be found at https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/electric-power/hydrogen-methodology

0

1

2

3

4

28-Jul22-Jul16-Jul10-Jul06-Jul30-Jun24-Jun18-Jun

SMR w/o CCS (inc. carbon) month ahead

SMR w CCS (inc. carbon) month ahead

PEMElectrolysis

AlkalineElectrolysis

NETHERLANDS HYDROGEN �INCLUDING CAPEX�

Source: S&P Global Platts

(Eur/kg)

CALIFORNIA ELECTROLYSIS �INCLUDING CAPEX�


($/kg)

N. Calif.Alkaline

N. Calif.PEM

S. Calif.Alkaline

S. Calif.PEM

2.0

2.5

3.0

3.5

4.0


NATURAL GAS�LNG


($/MMBtu)

1.0

1.5

2.0

2.5

3.0


Henry HubTTFJKM

NORTH AMERICA HYDROGEN ASSESSMENTS, JULY 28*

Excluding Capex Including CapexProduction Pathway $/kg Change $/kg Change

Alberta (C$/kg)

SMR w/o CCS 0.37 +0.02 1.66 +0.01

Alkaline Electrolysis 1.75 +0.19 3.21 +0.18

PEM Electrolysis 1.96 +0.21 4.07 +0.21

Appalachia

SMR w/o CCS 0.26 -0.01 1.25 -0.01

Alkaline Electrolysis 1.30 -0.23 2.31 -0.23

PEM Electrolysis 1.45 -0.27 2.90 -0.27

Gulf Coast

SMR w/o CCS 0.30 0.00 1.14 0.00



Midcontinent

SMR w/o CCS 0.27 +0.01 1.16 +0.01



Northeast

SMR w/o CCS 0.36 +0.03 1.42 +0.03



Northern California

SMR w/o CCS 0.61 0.00 1.83 0.00



Northwest

SMR w/o CCS 0.29 0.00 1.53 +0.05



Rockies

SMR w/o CCS 0.30 +0.01 1.23 +0.01



Southeast

SMR w/o CCS 0.32 0.00 1.19 0.00



Southern California

SMR w/o CCS 0.63 +0.07 1.80 +0.07



Upper Midwest

SMR w/o CCS 0.30 +0.01 1.25 +0.01



*Assessed previous day

NETHERLANDS HYDROGEN ASSESSMENTS, JULY 28

Production Pathway Eur/kg Change Eur/KWh ChangeSMR w/o CCS 0.2895 +0.0021 0.0087 +0.0001

SMR w/o CCS (inc. Capex) 0.7399 +0.0038 0.0222 +0.0001

SMR w/o CCS (inc. Carbon) 0.5503 +0.0093 0.0165 +0.0003

SMR w/o CCS (inc. Capex & Carbon) 1.0006 +0.0110 0.0300 +0.0003

SMR w CCS 0.3157 +0.0032 0.0095 +0.0001

SMR w CCS (inc. Capex) 1.0495 +0.0060 0.0315 +0.0002

SMR w CCS (inc. Carbon) 0.3445 +0.0039 0.0103 +0.0001

SMR w CCS (inc. Capex & Carbon) 1.0783 +0.0067 0.0324 +0.0002


Alkaline Electrolysis (inc. Capex) 1.9732 -0.3417 0.0592 -0.0103


PEM Electrolysis (inc. Capex) 2.4587 -0.3821 0.0738 -0.0114

JAPAN HYDROGEN ASSESSMENTS, JULY 28*

Excluding Capex Including CapexProduction Pathway Yen/kg Change Yen/kg ChangeSMR w/o CCS 61.88 +0.74 225.23 +0.74



*Assessed previous day

HYDROGEN

americas polymer spot price assessments

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