FEEDSTOCK - PROPYLENE

Propylene prices dipped to US$1080/MT in Asia in the week of October 29, 2007. Limited supplies did not boost prices on weak end user demand as buyers preferred to wait and watch. The hesitation on part of the buyers is in anticipation of a clearer picture of the market movement that will influence future pricing. Influx of propylene in the market upon restart of Taiwans' Mailiao and Formosa Plastics Corporation is expected to further push down November prices.