FEEDSTOCK - ETHYLENE

Ethylene prices plummeted in Asia to US$1250/MT in the week of March 3, 2008. Prices seem to be on a continuous drop as the Asian region continues to remain amply supplied, coupled with high inventory levels. Influx of cargo from the Middle East region has led to oversupply in the South East region, plummeting prices of spot cargoes to US$1250/MT CFR SE Asia. In the Far East region, few talks were heard as the market remained in a state of lethargy. An unexpected failure could lead to a week long closure of Taiwan's Formosa Plastics Corp.'s 900,000 tpa No.2 cracker in Mailiao.