ETHYLENE

Tight availability of ethylene across Asia has resulted in a quantum leap in prices. Ethylene prices rose to levels above US$1310/MT in the week of August 20, 2007. However, caution prevailed at the buyers' end as they were reluctant to procure material at such elevated prices, on account of uncertainty of downstream PE markets. Buyers seem unsure of the movement that currently strong downstream PE markets will follow in the coming weeks. Ethylene prices are expected to rise further in the next month, even as buyers resist offers at the present level.