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TableofContents

ConfidentialityStatement YnFxMonthlyPriceForecastPolyester. AsianPriceForecast Naphtha Paraxylene.. Ethylene PurifiedTerephthalicAcid. MonoEthyleneGlycol. PolyesterChip,semidull PSF1.4D/38mm.. POY75D TexturedYarn150/48. EuropeanPriceForecast. Naphtha PurifiedTerephthalicAcid. MonoEthyleneGlycol. Glycol PolyesterChip.. PSF1.7dtexSD.. POY167dtex TexturedYarn167dtex.. USAPriceForecast.. Naphtha PurifiedTerephthalicAcid. MonoEthyleneGlycol. Glycol PolyesterChip.. PSF1.2/1.5DSF. POY70D. TexturedYarn150D..

2 3 3 3 3 3 3 3 3 3 3 3 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6

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ConfidentialityStatement
This document is confidential and has been made available to the individual to whom it is addressed on the understanding that its content py g p y part p y any y process p p and copyrights will not be misused. Reproduction of any of this work by whatsoever without written permission of YNFX.comisstrictlyprohibited. All prices in this PriceWatch Report are indicative prices and may vary according to the type of fiber, quality level required. Information contained in this report is obtained from sources believed to be reliable, however YNFX.com will accept no responsibility or liability for commercialdecisionsclaimedtohavebeenbasedonthecontentofthereport.

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AsianPolyesterChainPriceForecast
Product/Specs Naphtha Paraxylene Ethylene PTA MEG PETChipSemidull, contspngFibregrade PSF1.4D/38mm POY75D TexturedYarn150/48 Market JapanCFR KoreaFOB KoreaFOB Korea/TaiwanFOB Korea/TaiwanFOB TaiwanFOB Korea/TaiwanFOB FEAsia(C&F) FEAsia(C&F) Unit US$/ton US$/ton US$/ton US$/ton US$/ton US$/ton US$/kg US$/kg US$/kg Apr13 Actual 846.0 1,442.9 1,225.0 1 225 0 1,044.8 1,005.0 1,390.0 May13 Sep13 Dec13 %YoY %YoY %YoY Forecast Mostlikely Tentative 849.8 4.1 865.01 11.9 876.41 7.1 1,447.9 1.6 1,468.25 3.1 1,483.47 8.1 1,225.9 1 225 9 8 1 1,229.31 8.1 1 229 31 7.4 7 4 1,231.90 1 231 90 2.9 29 1,048.2 4.7 1,061.87 2.3 1,072.14 7.9 1,006.6 2.7 1,012.76 8.4 1,017.41 10.2 1,395.2 1.4 1,416.17 5.5 1.47 10.8 1.59 2.6 1.75 0.1 1,431.87 2.7 1.49 6.4 1.60 1.6 1.76 0.6 1.7 4.6 1.7

1.45 1.46 1.57 1.57 1.73 1.73

1600 1500 1400 1300 1200 1100 1000 900


US$/Tons

1400 PTAPriceTrend 1300 1200 1100 1000 900 800


US$/Tons

MEGPriceTrend

800

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

700

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

2000 1800 1600 1400 1200


US$/Tons

2.25 2.00 1.75 1.50 PETChipsPriceTrend 1 25 1.25 1.00


US$/kg

PSFPriceTrend

1000

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

2.50 2.25 2.00 1.75 1.50 1.25 1 00 1.00


US$/kg

2.50 2.25 2.00 1.75 1.50 POYPriceTrend 1.25 1 00 1.00


US$/kg

TextureYarnPriceTrend

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

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POLYESTERCHAININASIA
ForecastforMay2013 Both Nymex crude and European Brent have been sensitive to economic indicators recently, including disappointing data on the US and Chinese economies. They may move on either side of US$100 a barrel mark in May depending on how European Central Bank's Bank s decision to cut interest rates would influence the equity and commodity markets. Oil market will remain well supplied,whichcouldcapanysustainedpricegains. Ethylene prices may remain flat in Asian markets after losing over US$185 a ton in the last two months. Ethylene has been trending with the energy complex and downstream demand, which may turn volatile in May. Similarly, volatility in paraxylene markets will continue for some months as the bigger PTA producers in China may sell spot paraxylene as they see fit, hoping to influencethelistprices.

Asian MEG announcements for May were heard at US$1,1501,190 a ton. Spot prices may remain flat to high depending on the strength in polyester chain. PTA sellers will increasingly look for formulatype pricing, with a settled margin over paraxylene ratherthancontinuingtorelyonaveragespotpricesforparaxylene. Polyester filament and stable fibre markets will remain dull and prices may inch marginally given the easing of raw material costs in March and April. Polyester filament yarn trading may pick up in Asian markets but prices will remain almost flat. PolyesterstaplemarketswilldullandoffersandpriceswouldstabilizeatAprillevels. TrendsinApril Contract price for paraxylene in Asia was initially pegged at US$1670 which prompted the surprising settlement for April at US$1400 a ton which was seen by some sellers as too low but very close to the floor price at that time. This led to quick rise in the spot prices which saw values touching US$1540 a ton within a week, only to fall back again. As for PTA, spot prices declined inMarchandcapacitiesweretakenofflinetopushpricesupbyUS$90100aton. MEG price in Asia for April was significantly lower since the return from the February holiday. March was settled at US$1300 1310 a ton and April at US$11501210 a ton. ton This reduction reflected spot prices that moved sharply over March, March below US$1000.SpotpricesweresteadyatUS$9901030. Polyester fibre chip prices in China for April Aril were nominated at a reduction from March, but they edged up a bit resulting from an increase in filament yarn shipment. Export offers were also seen increasing since the beginning of April from US$1350 to US$1400 per ton FOB. Polyester fibre inventories moved down sharply in China as seasonal demand increases and as the textile mills responded to keener prices. Offers for 150D POY for exports were pegged at US$1.431.48 a kg FOB, down US cents 10 over the month, while regional C+F prices were at US$1.441.50 a kg. 150D DTY offers were at US$1.681.73 per kg FOBin i China Chi asagainst i tth theregional i lposition iti of fUS$1 US$1.70 701 1.75 75ak kgC C+F. F

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USAPolyesterChainPriceForecast
Product/Specs Naphtha PTA MEG PETChip PSF1.2/1.5DSF POY70D TexturedYarn150D USGulf Delivered FOB Delivered Delivered Delivered Delivered Market US$/bl US$/ton US$/ton US$/ton US$/ton US$/ton UScents/lb Apr13 Actual 123.54 1,467.00 1 234 00 1,234.00 1,930.00 2,402.36 2,876.22 141.50 May13 Sep13 Dec13 %YoY %YoY %YoY Forecast Mostlikely Tentative 124.14 11.2 126.58 1.4 128.40 8.2 1,472.05 3.2 1,492.27 7.1 1,507.44 6.2 1 237 46 4 0 1,251.29 1 251 29 4 8 1,261.67 1 261 67 2 1,237.46 4.0 4.8 0 0.2 1,935.80 2.2 1,959.02 0.0 1,976.43 0.2 2,411.48 0.8 2,447.97 4.8 2,475.33 2.6 2,886.43 3.1 2,927.27 5.8 2,957.89 4.4 141.81 6.2 143.05 9.2 143.98 4.7

1600 1500 1400 1300 1200 PTAPriceTrend


US$/Ton

1600 1500 1400 1300 1200 1100


US$/Ton

MEGPriceTrend

1100

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

1000

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

2400 2200 2000 1800 1600 1400


US$/To on

2900 2700 2500 2300 2100 PETChipsPriceTrend 1900 1700


US$/Ton n

PSFPriceTrend

1200

1500

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

3200 3000 2800 2600 2400 2200


US S$/Ton

150 140 130 120 110 100


US Scents/lb

POYPriceTrend

TextureYarnPriceTrend

2000

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

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EuropeanPolyesterChainPriceForecast
Product/Specs Naphtha PTA MEG PETChip PSF1.7dtexSF POY167dtex TexturedYarn167dtex Market Rotterdam Delivered FOB Delivered Delivered Delivered Delivered US$/bl US$/ton US$/ton US$/ton US$/ton US$/ton UScents/kg Apr13 Actual 94.08 1,228.50 1,379.00 1 379 00 1,740.00 2,155.00 2,080.00 243.00 May13 Sep13 Dec13 %YoY %YoY %YoY Forecast Mostlikely Tentative 94.52 2.6 96.25 10.0 97.55 6.0 1,230.31 5.4 1,237.54 5.7 1,242.96 7.3 1,382.53 1 382 53 10 7 1,396.67 10.7 1 396 67 0.5 0 5 1,407.28 1 407 28 16 1.6 1,744.90 3.4 1,764.52 2.0 1,779.23 1.4 2,159.18 1.4 2,175.91 1.3 2,188.46 2.3 2,084.56 2.1 2,102.81 2.4 2,116.50 2.2 243.51 2.4 245.54 3.1 247.07 3.1

1600 1500 1400 1300 1200 1100


US$/Tons

1700 PTAPriceTrend 1600 1500 1400 1300 1200 1100


US$/Tons

MEGPriceTrend

1000

1000

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

2400 2200 2000 1800 1600 1400 1200


US$/Tons

3500 PSFPriceTrend 3000 2500 PETChipsPriceTrend 2000 1500


US$/Ton

1000

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

2900 2700 2500 2300 2100 1900

400 350 300 250 POYPriceTrend 200 150


UScent ts/kg

1700
US$/Tons

TextureYarnPriceTrend

1500

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2011 2012 2013

J F M AM J J A S O N D J F M AM J J A S O N D J F M AM 2011 2012 2013

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POLYESTERCHAININEUROPE&USA
ForecastforMay2013 In Europe, monthly contract price for European ethylene was fully settled for May, down Euro 100 a ton. The initial settlement was between Shell as a seller with Vinnolit. Retreating naphtha costs as well as spot ethylene prices since early April paved way for the decrease in May ethylene contracts. Ethylene supply in Europe will remain oversupplied but selling will become less distressed. After losing over US$150 a ton in the last two month, ethylene prices will go up in May. In US, ethylene market will remainbuyersmarketdespitethreeongoingturnaroundscuttinglargesupply.

In Europe, second half of 2013 will see a dramatic change in MEG production with higher performance from fresh catalysts and expansionatMEGlobalwhileasteeperdeclineisexpectedinPTApricesbutitwillalldependonAsianmarket.

POY price in US are poise to increase in May after dropping dramatically in April. There was a range of opinion in the US as to whether the reduction in costs will set a new level from for May onwards or if the present fall is short term and will be reversed come May. In Europe, domestic textile filament producers had made little progress in their attempts to negotiate increasesforQ2.

TrendsinApril In Europe, Europe March paraxylene settlement was concluded at Euro1250 a ton with a huge premium over Asia which was not acceptable to some buyers. April took a while to agree, but was finally settled at Euro 1120 a ton. Given the high price in March, demand was very low as buyers preferred to wait until April to take volume. The market for PTA was difficult in April. March PTA was provisionally pegged at Euro10011044 a ton, April was at Euro914957 a ton. In US, paraxylene for March was settled at US cents 79.5 with PTA at US cents 66.55. April paraxylene was agreed lower at US cents 72.25 with PTA hovering aroundUScents61.70withnoconfirmation. April was very quiet for MEG activity in US although inventory remained on the lower side as turnarounds kept production low. Contract prices based on Asian spot values were at US cents 47. 47 In Europe, Europe contract for March was settled at Euro 1070 a ton while demand remained lusterless. Some spot bulk MEG was heard done under tender for April delivery at Euro835840 a ton CFR. Contract discussions for April were in deadlock. In US, in spite of delays regarding the position of paraxylene, polyester fibrechippricesmoveddownUScents5andinEuropebyEurocents26.

There was some weakening in demand for polyester textile filament in early April in US, indicating a general slowing due to inventory corrections. DTY price increases went through for March while some increases did not materialize until April. All sectors t h have seen US cents t 46 per pound d increase, i largely l l reflecting fl ti hi higher h raw material t i l cost ti in Q1. Q1 April A il DTY was reported t d unchanged while the lag passing on raw material costs take effect. Polyester filament markets in Europe remained quiet, but there was some optimism regarding shortterm recovery. Import price to the EU for textile filament began to move down, losingUScents910perkg,inspiteofthemovingUSEurorate.

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