JIANGYIN SUNPING NEW MATERIAL CO., LTD

Japan's Idemitsu Kosan is maintaining runs at its three styrene monomer plants at reduced rates of

about 70-80% due to poor margins and low export demand, a company source said Tuesday.

The company has a 210,000 mt/year plant at Chiba, and two plants at Tokuyama -- a 120,000

mt/year No. 1 unit and a 220,000 mt/year No. 2 unit. Runs were reduced in November last year to

about 80% for the Tokuyama plants and about 65% for the Chiba unit, Platts reported previously.

The source said export demand has been "worse than expected after the Lunar New Year

holidays", but he remained optimistic that the market would improve in March and April. Idemitsu

plans to shut all three plants for turnarounds this year.

The Chiba plant will be shut for about a month from mid-March, while both plants at Tokuyama will

be shut for about a month from mid-September.

Recently China EPS Construction Conserves Energy and Fire Protection Seminar is held in Beijing.

At the Semiar, the Specialists said that domestic application of outer construction material still

has a  big differential when compaired with aboard. We should promote the new type of energy

conservation material and support the technological development and industrialization process

of our demestic enterprise in this field.

 Many specialists indicates that EPS as one of the most extensive outer thermal insulation material

in our domestic applied range, plays an important role in the operation of building energy

conservation emission reduction. In the construction market at home and aboard, the thin-

plastered EPS material systerm prevented any of the fire accident and its fireproof performance

has already been proved.

On the recent stage, the enterprises should seize the opportunity and study the B1 grade EPS.

At present, consider the current development of our construction thermal insulation material

market, EPS is to remain as the best choice.

  Recently the breakout of fire on many high-rising buildings in some big cities appears to be

rising.

  The government’s remediation on heat preservation industry has an impact on the EPS

 usage which is used for external wall insulation in May and June.

   The new policy will be announced in July. It is reported that EPS panel for external wall

insulation will be forced to made by B1 raw material.

HOUSTON-Braskem is buying Dow Chemical's global polypropylene (PP) business, the

Brazil-based company said on Wednesday.

Earlier in the day, Dow said it was selling the business to an unnamed strategic buyer

for $340m (€235m). Braskem said the purchase would make it the leading PP producer

in North America. Included in the sale are two PP plants in the US and two in Germany,

with a total capacity of more than 1m tonnes/year, Braskem said. The plants in the US

are in Texas at Freeport and Seadrift, and will increase Braskem's PP capacity in the

region by 50% to 1.4m tonnes/year. The two plants in Germany, at the petrochemical

complexes of Wesseling and Schkopau, have a capacity of 544,000 tonnes/year.

"The acquisition of Dow's assets consolidates our leadership in polypropylene in the US,

the largest thermoplastic resins market, and it also enhances our current position in

Europe, an important market for our biopolymers strategy," said Braskem CEO Carlos

Fadigas. "In addition, as our second acquisition in the US, this transaction will enable

Braskem to capture approximately $140m in synergies [net present value] through a

more diversified portfolio, a more leveraged fixed cost base and working capital, logistics

and supply optimisation," he added.

The transaction is expected to close by the third quarter 2011 pending regulatory

approvals. ($1 = €0.69)

Today's EPS Quotation:

China: 11,700-11,800yuan/mt   Standard Grade

             12,700-12,800yuan/mt   Fire Retardant Grade

100-200yuan/mt up compared with last week.

SM market price of Eastern China-July 8^th,2011: 10950-11000yuan/mt, 100/120yuan/mt up.

European polystyrene producers were on course to accept lower May prices and, as a result,

see margin erosion on a combination of lengthening supply, a stronger euro and more imports

from Asia, producer sources reported Monday.

Producers at the start of the month posted May general-purpose PS contract price nominations

with a range of Eur30-50/mt. With one producer seeking Eur30/mt ($26.26/mt) this became the

de facto reference target for May. But a number of sellers have since reduced their offers, with

one producer settling some May contracts at an increase of Eur20/mt.

This implies that it would have to swallow a margin of around Eur15/mt, after the May styrene

contract price settled at Eur1,276/mt, an increase of Eur35/mt above April.

One producer said it expected May average contracts to settle at around Eur1,460/mt FD NWE.

April net contracts were assessed by Platts at $1,450-1,460/mt FD NWE.

"The market has turned. [Supply] balances are different than Q1. The market is turning into a

longish, buyer's market," said one producer.

"Producer stocks [have been] running up a few thousand tonnes since the start of the year. By

the end of April [the level] was the highest it has been for a couple of years," the producer said.

Sources pointed to industry statistics published that showed that by April stocks had grown

from an average of 15-16 days' worth to around 25-26 days since the start of the year.

Some industry sources said other producers had allowed production to overrun because of an

overestimation that supply would be short.

"We've had to restrict and control stocks. Our stocks are well below average, but this is clearly

not the case for others," one producer source said.

Sources said the supply situation was baffling, given that demand was described as healthy

and better compared to 2010.

"Demand is OK -- it is not causing too many problems," the producer said.

"Demand has increased by 4.5% since last year, even if we take into account imports," a

second producer said.

A third producer explained that compared to last year, when supplies were unusually and

extremely tight because of a number of unscheduled shutdowns, 2011 was likely to be better

balanced while with new capacity additions in the second quarter, this was always expected to

see some additional polystyrene length.

"In 2010, a number of shutdowns took place and we recognized that there would not be the

same number of shutdowns in 2011. Polimeri has also added another line and the market is not

as strong as of late," the third producer said.

Polimeri started production at its new 85,000 mt/year general-purpose polystyrene line at its

Mantova, Italy, site in the first quarter.

"There are also lower exports, partly due to the stronger euro, recently. Turkey is considered an

export market (and because of the euro) Turkey and Africa demand has fallen, as well as the

political situation affecting Libya. They are not importing a lot of polystyrene," the third producer

said.

Sources also pointed to "lower-priced" polystyrene coming to Europe from Asia.

"These are all a number of factors that go into the making of a weaker export market, so I'm

not that optimistic in terms of [May] pricing. "We could get at best a Eur30/mt, I'd be pleased. I

would expect less than Eur1,500/mt [for net May contract prices]," the third producer said.

However, one converter said it was optimistic of achieving lower May prices. I don't believe in an

increase of Eur20/mt, I will push for a rollover in crystal [GPPS]," the converter said.

    China imported 319,850mt of LPG in May, up 10% from the previous month, according to data

released by the General Administration of Customs.

    Chinese importers were active in purchasing May LPG cargoes, stimulated by bullish

sentiment in domestic market in April, market sources denoted.

    The nation's LPG imports added up to 1.11-mil mt in the first five months of this year, up 17%

compared with a year earlier, showed the data.

    China recorded 103,753mt of LPG exports in May, up 7% on month, the data also indicated.

Sinopec Hainan refinery again exported LPG in the month, which explained the increase, market

sources pointed out.

China's LPG Imports & Exports in May'11 Unit: -mt
  May'11 MOM % YOY % Jan-May'11 YOY %
Imports 319,850 10% 16% 1,110,511 17%
Exports 103,753 7% 35% 521,446 66%
Source: General Administration of Customs of PRC