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Volume 30 / Issue 23 / June 5, 2007

Platts European and US Solvents Price Assessments Solvent Naphtha

FOB Rdam FD NWE
(US$/mt) (Euro/mt)
Solvent Naphtha (C9) 845 - 850 715 - 720 Northwest Europe
Toluene 816 - 820 730 - 735 In the solvent naphtha truck market a UK source reported
Xylenes 1030 - 1034 840 - 850
White Spirit(14-195) 765 - 770 645 - 650 achieving month on month price increases of between 2-3
Hexane(Special Grade) 856 - 860 765 - 775 pence per liter this week, adding that UK delivered prices
(¢/lb) FOB USGulf FOB Chicago were now pegged at 47 pence per liter. The increase
Toluene 44.75 - 45.25 47.75 - 48.25 reflected a $48.26/mt rise in the average European 10ppm
Xylenes 51.75 - 52.25 55.75 - 56.25 gasoline price over May. However, the rest of the European
(¢/lb) FOB USGulf DER market came under pressure from a fall upstream as the
Hexane 44.00 - 45.00 46.00 - 47.00
Hexane cts/gal 253.00 - 258.00 gasoline price fell by just over $24/mt over the week and
closed at $738/mt FOB Rdam, Tuesday. Many sources said
Platts Global Oxygenated Solvents Price Assessments that the current volatility of gasoline had kept solvent
naphtha trading low with both bulk and truck prices seen
FOB Rdam FD NWE FOB USGulf DER
(US$/mt) (Euro/mt) (US$/mt) (US$/mt) stable through the rest of Northwest Europe. In the truck
IPA 995 - 1005 1050 - 1060 1310 - 1320 1420 - 1430 market, prices were reported between Eur690-730/mt FD
Phenol (N) 1335 - 1345 1335 - 1350 1550 - 1570 1680 - 1700 (N) NWE and between Eur720-730/mt for deliveries into the
Acetone T1 715 - 730 - 1035 - 1055 1120 - 1140
Acetone T2 760 - 780 710 - 720 - 893 - 893
Mediterranean. Producers pegged bulk prices between $840-
MEK 925 - 945 930 - 940 1170 - 1180 1180 - 1190 860/mt FOB Rdam although no trades were reported.
MIBK 1280 - 1300 1205 - 1215 1315 - 1325 1495 - 1505
E Acetate 1010 - 1030 930 - 940 1000 - 1020 1140 - 1150
B Acetate 1070 - 1080 1050 - 1060 1212 - 1234 1354 - 1378
**Methanol 174.00 - 175.00 69-70
Solvent Toluene
FOB DSP (190) FOB DSP (200)
US Ethanol (cts/gal) 347.50 - 352.50 367.50 - 372.50
(US$/mt) CFR China CFR SEA Northwest Europe
Phenol 1655-1660 1645-1650 Bulk European toluene prices dropped $34/mt over the
Acetone 975-980 965-970
week, pushed down by falling US prices as volatility in the
*NWE methanol FOB Rdam price is in Euro/MT for T2 cargoes. **US Methanol is cts/gal
FD NWE prices in table based on spot lots of 20 mt in the German mkt. FOB based on larger
crude complex saw gasoline slump. The European average
spot parcels for import/export. DER US prices in table based on spot lots sold on a delivered, 10ppm gasoline price fell by over $24/mt over the week and
east of the Rockies basis in truckloads.
closed at $738/mt FOB Rdam, Tuesday. This saw toluene
European and US Chlorinated Solvents & Chlor-Alkali Assessments prices drop and despite a June arrival parcel reported done
at $850/mt CIF Germany Friday, numbers continued to fall
FOB Rdam FD NWE
(US$/mt) (Euro/mt) to an assessed mid point of $818/mt FOB Rdam, Tuesday.
Trichloroethylene 750 - 780 750 - 800 This lead one producer to say, “This is a very low premium
Perchloroethylene 440 - 450 450 - 490 to gasoline. At these levels it is preferable for producers to
Methylene Chloride 350 - 370 450 - 495
Caustic Soda 300 - 315 270 - 310 use toluene internally in the gasoline pool.” Truck prices
FD NWE (CP)
were so far unaffected by the bulk fall although many
(Euro/mt) sources felt that a decrease was inevitable. One source felt
Chlorine 180-190 that they could hold delivered numbers “for at least this
FOB USGulf DER week” while a distributor said, “I think the bulk fall won’t
(US$/mt) (US$/mt) effect prices for two weeks.” At present prices were reported
Trichloroethylene 1080 - 1102 1234 - 1256
Perchloroethylene 859 - 881 970 - 992 stable at levels between Eur730-745/mt for deliveries into
Methylene Chloride 837 - 859 926 - 948 Northwest Europe and the Mediterranean.
FOB USG FOB Plant US Contract
Chlorine — 330 - 335 320 - 330
Caustic Soda 340 - 350 $/mt 340 - 350 $/dst 310 - 320 United States
Solvent toluene prices settled at 45 cents/lb this week,
down slightly as barge values dropped. On Tuesday, spot

The McGraw Hill Companies

 PLATTS SOLVENTSWIRE
toluene prices were assessed at 285 cents/gal FOB USG,
down 21 cents from the previous week the lowest price
since April 4. The recent high barge prices have squeezed
margins, distributors said, causing some to hope the
market will not slip below 45 cents/lb anytime soon.
“Margins for solvents have been tight,” a source said.
“[Lower barge prices] restore some margins to our
products.” The softens in the spot market was attributed to
declining benzene values, which fell to 378 cents/gal FOB
USG on Tuesday. Last week, the June contract was settled
at 400 cents/gal. In May, benzene climbed as high as 425
cents/gal FOB USG.
Solvent Xylenes
Northwest Europe
Bulk xylene continued to rise this week as prices increased
$14/mt with market participants citing the Eur68/mt
increase in the European paraxylene contract price as a
driver. A deal was partially confirmed between a producer
and a trader “at the level of $1,045-1,050/mt” FOB Rdam,
May 31. One producer said he was surprised at this level
but added, “with the paraxylene European CP boost, it is
to be expected that PX feed should be quoted higher.”
However, a trader disagreed and felt that these price levels
were unworkable. “I was offered $1,040/mt but distributors
can’t absorb these prices. Even outside Europe they can’t
absorb these prices,” she added. The impact of the strong
bulk prices also boosted truck business by Eur15/mt. A
producer saw numbers up to between Eur850-860/mt FD
NWE, while a German distributor also reported that prices
were rising and quoted numbers between Eur840-855/mt.
He continued to say, “the market is short. Polish suppliers
are not offering product and many of my competitors did
not buy because of high prices.” Upstream, the average
gasoline price fell by $24/mt over the week, closing at
$738/mt FOB Rdam, Tuesday.
United States
Distributors were hoping to keep solvent xylene prices flat
this week as barge values were falling. “I’m lobbying to
hold prices,” a distributor said. “We need some margins.” If
barge prices continue to slip, sources said they expect a
price reduction to be announced later this month or early
next month. Barge prices were at 337 cents/gal FOB USG
on Tuesday. Recently the barge market had climbed as high
as 350 cents/gal FOB USG. “It’s nice to get a breather on
those [barge prices],” a source said. “At 350 cents/gal, it’s a
high priced product.” There was talk in the spot market,
though, that a major buyer could step in and make a large
purchase for the second half of June, pushing the spot
market higher.
2 Copyright © 2007, The McGraw Hill Companies
VOLUME 30 / ISSUE 23 / JUNE 5, 2007
White Spirit
Northwest Europe
The bulk white spirit market rose by $5/mt this week amid
rumors that buyers in the Mediterranean region were
looking to source product from Northwest Europe.
Although sources could not confirm fixtures, the market
was reported short and one participant said that he was
looking for a $10/mt increase on his current FOB price of
$765/mt, following a $20/mt increase last week. Prices of
$765-775/mt FOB Rdam were also reported by a producer
in Northwest Europe. In truck business, prices remained
stable although one supplier in the Iberian peninsula said
there was “a real difference of opinion on delivered
pricing.” He reported delivered prices as anywhere between
Eur620-680/mt FD. In Northwest Europe a producer
reported prices as up by Eur15/mt, to levels between
Eur645-650/mt FD, citing an increased demand from the
coatings industry as the reason for the rise. A German
distributor agreed with these levels although he also
warned that prices could fall by the end of the week.
Upstream, jet kerosene fell by over $10/mt on the week
and closed at $692/mt CIF NWE, Tuesday. Over May, the
average jet price rose by over $37/mt.
Hexane
Northwest Europe
In the Iberian peninsular a producer felt that FOB Med
prices should be between $855-860/mt adding that the
despite a fall in upstream naphtha, the market was willing
to pay this due to strong export demand in North Africa.
The range of bulk prices remained wide throughout the
European market this week, although with no clear
direction, prices were assessed flat. A German distributor
reported buying 1.2KT of material at $825/mt FOB Rdam,
however a producer responded to this by saying, “with the
current feedstock price, it is not possible to buy at this
level” and pegged levels between $890-900/mt FOB Rdam.
He also added that prices could rise but at present “it was
not reasonable to the market to push prices up.” Truck
business was reported as stable across all regions with
prices reported at Eur760-780/mt for special grade material.
Upstream naphtha fell heavily over the week, with the
average price down by over $30/mt and closing at $664.25
FOB Rdam Tuesday. However, on a month by month basis
naphtha has risen by $28/mt.
United States
Rising feedstock prices pushed hexane values higher this
week. “I’ve had no issue in getting supply,” one buyer said.
He added however that he’s seen 20 cents/gal increases on
a regular basis, due to rising feedstock prices and tightness
 PLATTS SOLVENTSWIRE
in supply. Spot was talked at 47 cents/lb DER and about 45
cents/lb FOB USG. Meanwhile, prices ticked up 1 cent from
last week to 44-45 cents/lb FOB USG, 253-258 cents/gal
FOB USG and 46-47 cents/lb DER. In feedstocks, toluene
was pegged at 285 cents/gallon FOB USG Tuesday, falling
more than 20 cents from last week.
Isopropyl Alcohol
Northwest Europe
Isopropyl alcohol prices rose further this week, up
Eur10/mt to Eur1,050-1,060/mt FD NWE on a lack of
available product for sale in the spot market. “There simply
is not enough product around,” said one trader. Some
material was rumored to be heading to Europe for second
half of June arrival but sources were unsure of the source.
Even so, the volume of material was not thought to be
large enough as to affect the market and values of around
Eur1,100/mt FD NWE were possible through June if the
supply situation does not change, sources commented. The
export market also increased $10, assessed at $995-1005/mt
FOB NWE.
United States
The IPA market continued to be tight, sources said. “There
hasn’t been as much import lately. Asia has been up, and
those guys can’t get enough propylene. At this time, (US
producers) can get better returns in Asia and Europe.” Spot
pricing was at $1,310-$1,320/mt FOB USG and $1,420-
$1,430/mt DER. In production news, calls about Dow’s
scheduled turnaround in June were not returned by time of
press. In upstream news, all eyes were on propylene. June
nominations were plus 1-2.5 cents/lb. Spot pricing was at
45 cents/lb delivered USG for rfg and at 47.75 cents/lb
delivered USG for chemical grade.
Phenol
Northwest Europe
Supplies in the NWE phenol market continued to be tight
this week but buyers continued to hold back. Prices were
heard unchanged at Eur1,335-1,350/mt FD NWE. “The
market is still under a lot of pressure and we are all in a
tight position,” said one producer. Despite Ertisa’s Huelva,
Spain, plant coming online at the end of April, there has
been no easing in supply to the market, said a source with
the company. The site is able to produce of 250,000mt/year
of phenol and 155,000mt/year of acetone. Looking ahead,
prices were expected not to move much through June since
material was expected to continue to remain tight. Borealis
was due to restart its 130,000mt/year Porvoo plant in
Finland on May 30 but it was not possible to confirm this.
3 Copyright © 2007, The McGraw Hill Companies
VOLUME 30 / ISSUE 23 / JUNE 5, 2007
A benzene CP settlement of Eur868/mt FD, reflecting a fall
of Eur2/mt on the month would have little impact on the
market through the month, a number of sources said.
United States
Phenol prices moved lower this week as cumene prices
were dropping off. Benzene prices fell sharply this week,
following last week’s contract price settlement at 400
cents/gal for June. On Tuesday, benzene was at 378
cents/gal FOB USG, down 30 cents for the week. Last
month, benzene traded as high as 425 cents/gal FOB USG.
Asia
Asian phenol prices were assessed higher on the week,
with deals taking place at the levels of $1,655-1,660/mt
CFR China L/C 90 days. Among those that had concluded
deals were a South Korean producer, which sold about
3,000 mt for June delivery at $1,660/mt with 90 days
credit to China, after making initial offers last Tuesday.
Over the week, a Taiwanese producer also sold out parcels
totaling 4,000 mt—about 2,000 mt less than previous
month—due to the channeling of product to its
bisphenol-A unit. The cargoes were sold to Chinese
trading houses at around $1,605/mt FOB Mai Liao.
Japan’s Mitsui Chemical was meanwhile still in
negotiations with contract customers after having
nominated its June Asian contract price at $1,620/mt
CFR, and expects to have it settled by the end of this
week, a company source said Tuesday. The company has
no spot cargoes to offer due to upcoming maintenance
shutdowns of its plants in Osaka and Singapore. The
plant in Osaka has a 200,000 mt/year phenol capacity
and will be shut on June 23 for a 30-day maintenance
turnaround. Meanwhile, Mitsui Phenol Singapore expects
to shut its plant in the third week of June for
maintenance and debottlenecking. Mitsui’s Singapore unit
currently produces 250,000 mt of phenol yearly. Those
figures are expected to be increased to 300,000 mt/year
after the expansion. The Southeast Asian market has
remained tight with scant spot deals heard, primarily
because of Mitsui Phenol Singapore’s planned
turnaround—which put a halt to its spot offers. Despite
benzene values having fallen by more than $85/mt since
May 18, to reach $1,060/mt FOB Korea on Asia’s market
close Tuesday, phenol-acetone producers said they did not
feel compelled to reflect the drop in feedstock costs
because the market was still facing both tight availability
and healthy Chinese demand. They added that any
change in price levels might only be reflected in offers for
July cargoes. In China, Sinopec subsidiary Shanghai
Gaoqiao Petrochemical was heard to have hiked offers by
Yuan 550/mt to Yuan 15,700/mt ex-works. The other
three major producers had followed suit to a lesser degree
with prices increases of Yuan 350/mt to Yuan 15,400-
15,500/mt ex-works.
 PLATTS SOLVENTSWIRE
Acetone
Northwest Europe
Prices in the NWE acetone market fell Eur10/mt FD NWE
this week from last week’s assessed level Eur720-725/mt FD
NWE due to a lengthening in supplies. In mid-May, the
distribution market stood at Eur735-745/mt FD NWE,
supported by high phenol prices. Producers continued to
bemoan the recent trend of falling prices seen in recent
weeks amid the tight upstream phenol market. However by
contrast, a buyer said the acetone market was well supplied
and therefore prices had to come down. Price levels were
expected to remain within the recent weeks’ trading range
through this month as the market waited for feedstock
contract settlements for the third quarter. The export
market was stable at $760-780/mt FOB Rdam.
United States
Acetone prices were said to be near 47.5 cents/lb
($1,046.90/mt) this week, down slightly from the previous
week. Sources said the market should stay flat or even
rebound slightly as supply was tightening. “Acetone seems
to be holding,” a distributor said on Tuesday. Supply this
week was called adequate, though there was concern that
plants leaving maintenance outages could put a squeeze on
supplies, as they increase their need for acetone. Higher
propylene values also are helping provide price support,
sources said.
Asia
Asian acetone prices were assessed higher this week on the
back of deals heard done at the levels of $960-980/mt CFR
China L/C 90 days. A source from a South Korean producer
reported the company had sold about 5,000 mt of product
for June delivery at $980/mt, inclusive of freight and
usance of 90 days, to southern China, and at $960/mt to
eastern China. Following that sale, he said the company no
longer had cargoes to offer for June. A Taiwanese major,
meanwhile, said that due to the recent start-up of a
bisphenol-A unit of an affiliated company, it only had a
few spot cargoes left to offer. Another Korean producer was
rumored to have 5,000 mt of product to offer, although a
source from the company denied this. Japan’s Mitsui
Chemical remained in negotiations with contract
customers after having nominated its June Asian contract
price at $980/mt CFR, and expects to have it settled by the
end of this week, a company source said Tuesday. The
company has no spot cargoes to offer due to upcoming
maintenance shutdowns of its plants in Osaka and
Singapore. The plant in Osaka has a 120,000 mt/year
acetone capacity and will be shut on June 23 for a 30-day
maintenance turnaround. Furthermore, Mitsui Phenol
Singapore expects to shut its plant in the third week of
June for maintenance and debottlenecking. Mitsui’s
4 Copyright © 2007, The McGraw Hill Companies
VOLUME 30 / ISSUE 23 / JUNE 5, 2007
Singapore unit currently produces 150,000 mt of acetone
yearly. Those figures are expected to be increased to
180,000 mt/year after the expansion. The Southeast Asian
market has remained tight with scant spot deals heard,
primarily because of Mitsui Phenol Singapore’s planned
turnaround—which put a halt to its spot offers. Despite
benzene values having fallen by more than $85/mt since
May 18, to reach $1,060/mt FOB Korea on Asia’s market
close Tuesday, phenol-acetone producers said they did not
feel compelled to reflect the drop in feedstock costs
because the market was still facing both tight availability
and healthy Chinese demand. They added that any change
in price levels might only be reflected in offers for July
cargoes. In China, the four major producers were heard to
have hiked offering prices by about Yuan 200/mt to Yuan
8,700-8,800/mt ex-works.
Methyl Ethyl & Methyl Isobutyl Ketones
Northwest Europe
MEK prices were reported Eur10/mt lower at Eur930-
940/mt FD NWE this week as a result of lower demand,
sources said. “The market is seeing slow demand in long-
term comparison and we are not considering it worth it to
bring product into Europe to market it,” said one trader.
MIBK, remained steady at Eur1,205-1,125/mt FD NWE this
week as sources reported a continued lack of market
activity.
United States
Producers were working to push 3-cent increases on June
contract prices, sources reported. One participant said that
the MIBK market was getting smaller. He also reported that
another participant was on MEK sales control as they were
having trouble getting product. Prices were talked flat.
MEK was at $1,170-$1,180 FOB USG and $1,180-$1,190/mt
DER. MIBK was at $1,315-$1,325 FOB USG and $1,495-
$1,505/mt DER.
Ethyl Acetate
Northwest Europe
The NWE ethyl acetate market edged up Eur5/mt to
Eur930-940/mt FD NWE with deals were heard done as low
as Eur910/mt and as high as Eur990/mt FD NWE. However,
market sources said both were extremes and the majority
of business was done at assessed levels. The small rise was
attributed to the “psychological impact” of a possible
ethylene shortage from INEOS’ Grangemouth production
site in the UK, sources said. The producer declared FM on
supplies of ethylene, propylene and butadiene from its
320,000mt/year G4 cracker May 29. During scheduled
 PLATTS SOLVENTSWIRE
maintenance, the company had discovered additional
required work, meaning that the cracker could be offline
for up to three more months. In production news, a source
at BP said that they had managed to re-supply spot product
to Europe from the 250,000 mt/year Hull ethyl acetate
production site. The INEOS FM could also have a knock-on
effect on the BP site, sources said.
United States
This week, sources said that suppliers were working toward
a 3-cent increase on June contract prices. In production
news, there have been no new updates about Celanese’s
FM for its acetic acid unit at Clear Lake, Texas. Spot pricing
was flat from last week at $1,000-$1,020/mt FOB USG and
$1,140-$1,150/mt DER. In upstream news, acetic acid
prices ticked up due to strong demand and the issues at
Celanese. In pricing the market was at $680-690/mt
delivered USG for export and 48-50 cents/lb FOB USG for
domestic.
Butyl Acetate
Northwest Europe
The NWE butyl acetate market firmed Eur25/mt this week
to Eur1,050-1,060/mt FD NWE despite producer reports
that the market was “as yet not short”. But buyers as well
as sellers said the FM declaration by Celanese in the US on
acetic acid would ultimately have an effect on Europe.
Celanese declared force majeure May 14 at its 1.2 million
mt/year acetic acid facility at Clear Lake, Texas. Butac
buyers said they wanted to secure product while sellers said
they wanted to “lay down the basics” to avoid a sharp
ramp-up in prices. Producers also pointed to a higher
intake for order books from the close of May. One German
producer said his books had seen a 10-12% increase on
orders at the close of May as more and more people were
trying to cover their demand. “It is more a question of
securing supplies than paying a higher price,” he said. The
order pattern was looking busy into the third week of June
as well, as buyers anticipated rising prices and wanted to
escape a possible shortage of product. The direction into
July was up based on rising feedstock prices and expected
stronger quarterly settlements for propylene and AA. The
export market increased $30/mt FOB.
United States
Demand from solvent buyers has picked up in the last
week weeks, according to sources. They added that supply
has been available. “Seasonal demand has kicked in,” one
participant said. In contracts, the Oxea Group announced
12-cent increases on off-list prices for the US, Canada and
Mexico effective July 1. Meanwhile, spot prices were talked
at 61-63 cents/lb DER or about $1,366/mt DER. The
5 Copyright © 2007, The McGraw Hill Companies
VOLUME 30 / ISSUE 23 / JUNE 5, 2007
assessment was flat from last week at $1,212-$1,234/mt
FOB USG and $1,354-$1,378/mt DER. In upstream news, n-
butanol producers announced 5 cents increases on June
contracts. Meanwhile, buyers were concerned about
propylene nominations.
Chlorinated Solvents and Chlor-Alkali
Northwest Europe
There was some downward pressure heard on chlorinated
solvent prices in the south of Europe this week as sellers
competed for buyers in a sluggish market. Sources said that
prices for methylene had slipped to Eur430-440/mt FD in
Iberia and were just a shade higher for perchloroethylene.
Prices in southern France and Italy were pegged slightly
higher than those in Spain. And, in NWE, including the
UK, sellers insisted that Eur450/mt FD was the base for
both perc and methylene with sellers seeking an increase
on top of this level in June. Export prices for bulk perc
were talked lower than in Apr-May but methylene was
relatively stable upwards of $350/mt FOB Rdam. Vessel
space was said to be an issue although freight rates were
not increasing to prohibitively high levels as has been seen
on some other petrochemical products. Caustic Soda and
Chlorine: Rising stock levels were not likely to have a
marked effect on third quarter negotiations for caustic soda
given forthcoming chlor-alkali turnarounds, the
expectation of continued steady demand and a weakening
situation on vinyls, according to sellers. Nevertheless,
buyers were already talking prices down based on
developments on the spot market during Q2 which had
dragged levels from above Eur300/mt FD to around
Eur270/mt FD in the north of Europe and from Eur320-
340/mt FD to upwards of Eur300/mt FD in the south. A
Mediterranean source said a slip of between Eur10-15/mt
was the most likely outcome for Q3. It was too early for
feedback from the majority of Northwest Europeans which
said discussions had not yet started to take shape. In
production news, operations at the 190,000 mt/year
Vilaseca, Spain unit were still impacted by transformer
issues which began in May. Rates were set to be fully
restored by the end of the month. Separately, Ercros said it
would be moving PVC emulsion production from its
smaller 70,000 mt/year plant at Monzon to Vilaseca. The
company already operates a 130,000 mt/year PVC unit at
Vilaseca close to the port of Tarragona, which will be
expanded. The process of closing the old capacity and
starting the new could take up to seven years, a company
source said.
United States
Chlorinated solvents demand was characterized as decent
to strong during the first week of June with one producer
suggesting that the trend will hold throughout the
 PLATTS SOLVENTSWIRE
summer. “We had a strong May and don’t anticipate any
changes in the foreseeable future,” the source added.
Methylene chloride prices were reportedly under pressure
and as a result edged slightly higher this week, pegged at
42-43 cents/lb. Perchloroethylene prices also ticked up
slightly and were talked at 44-45 cents/lb for industrial
grade material. Trichloroethylene prices were reported in
the mid- to upper 50 cents/lb. No spot activity was heard
done this week. Chlorine: There was little change in the
chlorine market this week as it continued to maintain its
strength in early June. Demand was characterized as
robust and was expected to continue to be strong in the
coming months. Strong demand was reported in all sectors
and in particular from the vinyls sector. Supplies were said
to be tight and several producers were still heard to be in
arrears. Sources reported that a $25 proposed April price
hike had been accepted. Spot values were talked at $330-
$335 per short ton FOB plant while contract prices were
reported in a wide range with US Gulf Coast prices level at
$320-330 per short ton. May operating rates were expected
to be level to April, around 94% industry-wide for May,
sources said. Caustic soda: Caustic soda supplies remained
tight this week amid continued strong demand. “Demand
is stronger than we had forecasted,” commented one
industry source. Inventory levels were said to be low and
little spot activity was heard due in part to the tightness of
the market. Domestic caustic soda spot prices were
unchanged and were reported to be on either side of $345
per short ton FOB plant. Contract prices were talked in the
range of $310-$320 per short ton. Little export activity was
reported this week. “There may be some smaller parcels
here and there but nothing substantial,” one source noted.
In production news, Dow is expected to bring its unit at
Plaquemine online within the next 7-10 days following an
extended outage, a source close to operations said.
Ethanol
United States
The ethanol market was quiet, sources said, but they
expected increases in the near future. This week prices
were flat at 347.50-352.50 cts/gal FOB DSP (190) and
367.50-372.50 FOB DSP (200). In production news, the US’
Grain Processing Corp is working to avoid declaring a
force majeure for its GPC plant at Muscatine, Iowa, as a
result of a tornado that hit the area on Friday, according
to a source familiar with the company’s operations. As of
Monday, the plant had not returned to normal production
rates, the source detailed. The tornado came within 8
blocks of the plant that lost power and water for a
sustained period Friday. “This (event) has put a significant
strain on our supply capabilities as our inventories were
already at the lowest levels in modern history,” the source
said. “Demand for quality alcohol has been extremely
strong. As we bring our units back online, it will take
6 Copyright © 2007, The McGraw Hill Companies
VOLUME 30 / ISSUE 23 / JUNE 5, 2007
some time to reach quality production, and that means
our inventories will be critical.”
Methanol
Northwest Europe
The Northwest European methanol market was assessed
Tuesday at Eur174.50/mt FOB Rdam, level from May 22 as
no new demand and no new supplies had emerged into
the market. The “trend is to stabilize rather than over-
produce,” one source said Tuesday adding that people are
keen to avoid the situation seen last year where prices
fluctuated a great deal between quarters. A source saw that
“on a world scale, production is higher than demand,” at
present and that this will be a factor in the upcoming
quarterly contract negotiations. The source thought that
contract prices would not fall too low because “importers
may have problems even at the current spot level.”
United States
Spot methanol values ticked up slightly last week despite
thin trading throughout most of the week. Mid-week
activity saw spot values at their lowest levels in weeks,
pegged at 68.50-69.00 cents/gallon FOB USG. The lower
sell ideas however failed to attract buyers and prices
remained at that level until Friday when several deals were
confirmed done. While no trades were heard following the
weekend, notional buy and sell ideas edged up a touch and
were heard at 69 and 70 cents/gallon FOB USG,
respectively. One source reported the possibility of making
a trade Monday at 70 cents/gallon FOB USG for prompt
material however opted to wait anticipating higher prices.
News Briefs
Valero says shuts Houston FCC
for about two weeks for work
New York—Valero Energy said Tuesday it has idled the
gasoline-making fluid catalytic cracking units at its refineries
in Houston, Texas, and Krotz Springs, Louisiana. Valero, in a
statement, said it idled the FCC at its 130,000 b/d Houston
refinery "due to mechanical issues." The outage is expected
to last about two weeks while repairs are made, during
which time the refinery will lose roughly 40,000 b/d of
gasoline output, the company said. It added that crude runs
at the refinery will be cut to 55,000 b/d during the FCC
outage. Valero said it also shut the FCC at its 85,000 b/d
Krotz Springs refinery to replace the flue gas cooler. The
statement did not indicate how long the outage would last,
but noted 25,000 b/d of gasoline production would be lost.
"In both cases, we are working hard to make sure this impact
is as small and as short as possible," Valero said.
 PLATTS SOLVENTSWIRE VOLUME 30 / ISSUE 23 / JUNE 5, 2007

Dow announce global acrylic acid,
ester price hikes from July 1
London—Dow has announced price increases for acrylic
acid and esters effective July 1, 2007. Dow will increase
prices for glacial acrylic acid, butyl acrylate, ethyl acrylate,
methyl acrylate and 2-ethylhexyl acrylate, as follows:
Butyl Acrylate/2-Ethylhexyl Acrylate
In North America by 5 cents/lb
In Asia Pacific by $120/mt
In Middle East/Africa by $120/mt
In Latin America by $120.00/mt
In Europe by Eur90/mt
Ethyl Acrylate/Methyl Acrylate/Glacial Acrylic Acid
In North America by 3 cents/lb
In Asia Pacific by $70/mt
In Middle East/Africa by $70/mt
In Latin America by $70.00/mt
In Europe by Eur50/mt
"The need for these increases is driven by an industry-
wide butanol and 2-ethylhexyl supply/demand imbalance,"
explained Mark Bassett, global business director for the
Acrylic Monomers business of The Dow Chemical
Company. "This has reached such a critical point that
production is not able to meet demand. This increase also
attempts to recover increases in the cost of raw materials
such as propylene and natural gas."
US-bound Saudi crude OSP hikes
in line with sour gains: traders
New York—Saudi Aramco's increases of the official
selling prices for US-bound crudes for July were in line
with overall trends seen recently and an attempt to catch
up with gains made in May by egional sour crudes,
notably Mars Blend, market sources said Tuesday. Aramco
announced earlier Tuesday, that it was hiking July US-
bound crude OSPs by $0.60-$1.50/barrel from June OSPs
(story 1026 GMT). In the past week, regional sour crude
benchmark Mars Blend differentials have risen sharply.
Prompt July-delivery Mars differentials were last quoted
Tuesday at a $3.00/b discount to cash WTI, compared
with the start of the June at $3.58/b discount. Sources
noted that while the differentials have come off from
levels seen when the July cash contract took the main
focus May 29, those were mostly in response to rising
underlying benchmark crude prices, and in sympathy
with sweet crudes that have come under pressure from an
array of foreign sweet crudes now sitting in the US Gulf
region. "The overall trend in Mars has been upwards,"
said one source. Also, Mars differentials averaged a
$1.58/b discount to cash WTI for May-delivered oil, and
$3.44/b discount for June-delivered oil, sources said.
"They were just trying to catch up with May," said
another source of the Aramco OSP move. Healthy US
refining margins may have given Aramco yet another
reason to hike prices for its export crudes, sources said.
According to some sources, US topping margins are
currently at $14/b, while complex margins are at $24/b.
BASF completes German specialty
plasticizer plant expansion
London—Germany's BASF has completed the expansion
of its specialty plasticizer plant at Ludwigshafen from the
previous 25,000 mt/year to 100,000 mt/year, the company
announced Tuesday. The expansion of the di-isononyl-
cyclohexane-1,2-dicarboxylate (DINCH) plant was done
over a six-month period. BASF markets its DINCH, which is
use in soft PVC toys and medical devices, under the
tradename Hexamol.
Spain's Ercros to move PVC operation
from Monzon to Vilaseca
London—Spain's Ercros has plans to move its polyvinyl
chloride emulsion operations from Monzon to Vilaseca, a
company source said Tuesday. Ercros already operates
chlor-alkali, ethylene dichloride-vinyl chloride monomer
and PVC units at Vilaseca. The company's 70,000 mt/year
PVC plant at Monzon will eventually be closed and its
130,000 mt/year plant at Vilaseca near the port of
Tarragona will be expanded. The planning process for the
move is at an early stage and it could take up to seven
years for the project to complete, the source added.

] Solventswire Volume 30 / Issue 23 / June 5, 2007

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