FEEDSTOCK - ETHYLENE

Prices of ethylene have stagnated at US$1085/MT in Asia in the week of November 5, 2007. Reluctance on part of the sellers to sell at this low price due to gaining strength of downstream PE and MEG prices has sustained market activity at a very low level. Expectation of a dip in ethylene prices due to an expected increase in supplies from the Middle East has softened buying interest. Thus, despite rising crude oil and naphtha values, ethylene prices have stagnated at last weeks' levels.