FEEDSTOCK - VCM

VCM prices have stagnated at US$780/MT in Asia in the week of November 5, 2007, due to slow moving demand from China. Slow movement in downstream PVC markets has prompted lackluster VCM demand, despite early issue of November offer by Japan's Tosoh. Chinese processors were unwilling to negotiate prices as domestic PVC prices continue to be southbound. VCM prices are expected to dip further in the weeks of November, mirroring the bearish sentiments prevalent in the PVC market.