Contract olefins prices were confirmed to be lower this week on lower ethane prices and weakening demand, sources say. February ethylene contracts lost 3 cts/lb, after 13 months without a decline. Primary-grade and chemical-grade propylene contracts were agreed to at 3 cts/lb for February contracts, a compromise from split settlements earlier in the month, sources say. Spot ethylene prices held steady, while spot propylene prices fell 3 cts/lb on poor derivative demand, sources say.

Spot naphtha in Europe lost $30/m.t., along with oil. However, spot olefins were able to hold steady, thanks to stronger demand in most derivatives. Given the declines recently, a plateau against a drop in feedstock prices is a gain for cracker operators, sources say.

Spot aromatics were generally quiet, but the bigger developments were in the monthly settlements. March benzene on the U.S. Gulf Coast was agreed to at an increase of 43 cts/gal, putting the contract price at a premium to spot, which dropped a dime. Spot toluene was higher by 5 cts/gal, while spot mixed xylenes gained 7 cts/gal. Higher prices for fiber intermediates helped xylenes, sources say. Styrene continued to creep higher, with February contracts settled at an increase of 2 cts/lb and the spot price higher by a penny. Producers are talking about a much higher March contract increase, of perhaps as much as 5 cts- 10 cts/lb.

The pattern was the same in Europe, where aromatics spot prices were level, except styrene, which gained $20/m.t. The March benzene contract was agreed to at an increase of €46/m.t. March styrene was still a split contract, but the two price tiers moved higher at the same rate, each gaining €50/m.t. At least one major producer has nominated an increase of €120/m.t. for acrylonitrile butadiene styrene and styrene acrylonitrile thanks to robust demand.

In the fuels market, spot methanol slumped 30 cts/gal on the Gulf Coast and €20/m.t. in Europe.

A recovery in fibers markets, combined with production problems for isomer xylenes in Asia, gave a bounce to European spot prices. Para-xylenes were higher by $110/m.t. while ortho-xylenes gained $10/m.t. March contracts on both sides of the Atlantic were unsettled as of CW press time, as buyers were hoping a spike in Asia would be short-lived.

Acrylonitrile also saw some gains, with the first-quarter contract price in Europe being agreed to at an increase of €100/m.t. Discounting continues unabated, however, sources say.

70 cts 60

50 40 30 20 10 0

MAMJ J AS ON ’07

58 cts/lb del Feb ▼

59.5 cts/lb del Feb ▼

61 cts/lb del Feb

397 cts/gal fob Feb ▲

286 cts/gal fob Feb

64 cts/lb fob Feb ▲

190 cts/gal fob Mar

€840-850/m.t. cif

€860-870/m.t. cif

$1,230-1,240/m.t. fob

$1,180-1,190/m.t. fob

$900-920/m.t. fob

$890-900/m.t. fob

$1,490-1,500/m.t. fob ▲

€300-320/m.t. fob

$980-990/m.t. fob

€945/m.t. del Q1

€890/m.t. del Q1

€787/m.t. del Mar ▲

€ 1,088; 1,120 del Mar ▲

€490; 525/m.t. fob Q1

DJ F ‘08

BENZENE (U. S. spot; dollars/gal)

$4.5

4.0

3. 5

3.0

2. 5

2.0

11. 5

11.0

0.5

0

DJF MAM J JA ’07

S ON

DJ FM ’08

S T YRENE (U.S. spot; cts/lb)

70 cts

60

50

40

30

20

10

0

DJF MAM J JA ’07

S ON

PArA-XYLEnE

SPot

$1,055-1,065/m.t. fob

ortHo-XYLEnE

EtHYLEnE GLYcoL

50-52 cts/lb fob

METHANOL (U.S. spot cts/gal)

300 cts

250

200

150

100

50

0

DJ FM DJF ’08 ’07

MAMJ JASON

DJ FM ’08

contrAct

SPot

contrAct

54.25 cts/lb del Feb

$1,140-1,1180/m.t. fob ▲

€785/m.t. del Feb

50.5 cts/lb fob Feb

$1,060-1,080/m.t. fob ▲

€750/m.t. del Feb

54-56 cts/lb fob ▼

antifreeze

fiber-grade

AcrYLonItrILE

EDc

InorGAnIcS

c HLor In E $280-295/ton fob Q1 €190-230/m.t. del Q1

cAUStIc SoDA $445-475/ton fob Feb $380-395/m.t. fob ▲ €315-330/m.t. del Feb

SoDA ASH $125-155/ton fob 2008 €180-220/m.t. del. 2007

11) Nitration-grade. CW Price Report is compiled the Wednesday prior to publication through consultation with producers, consumers, and traders. Prices are quoted fob (free-on-board), cif (cost, insurance & freight), c&f (cost & freight), or frteq (freight equalized). References are N WE (Northwest Europe) port for Europe and USG (U. S. Gulf ) port for the U. S., and reflect recent large-volume transactions.

$1,800-1,820/m.t. fob

$15-17 cts/lb ▼

55 cts/lb del Mar

84-86 cts/lb del Jan

€750-800/m.t. cif ▼

$1,850-1,870/m.t. cif ▲

€250-260/m.t. fob ▼

€951/m.t. del Feb ▼

€ 1,600-1,640/m.t. del Q1 ▲

$150-190/ton fob ▼

$500-525/ton fob ▲