FEEDSTOCK - VCM

VCM prices recorded a hike, moving up to US$750/MT in Asia in the week of December 10, 2007. VCM prices have gained strength in the Asian markets amid a quick upsurge in sellers' offers. In fact, December offers were heard quoted higher by almost thirty dollars - at levels as high as US$770/MT CFR China. This sharp hike can be attributed to an ongoing rise in naphtha prices; and has been met with some opposition from the buyers from China. The sharp difference in sellers' offers and buying intentions has resulted in an absence of deals.