Chemical Business Focus: A Monthly Roundup and Analysis of The Key Factors Shaping World Chemical Markets

including Maleic Anhydride, Propylene Oxide, POLYESTER POLYOLS, PBT and PTMEG
1,4-Butanediol & Derivatives

ISSUE NUMBER 000
4TH JULY 2013
CHEMICAL BUSINESS FOCUS

A MONTHLY ROUNDUP AND ANALYSIS OF THE
KEY FACTORS SHAPING WORLD CHEMICAL MARKETS
CONTACT: PHILIPPA DAVIES
Email: philippa.davies@orbichem.com
1,4-Butanediol
1,4-butanediol market fundamentals in North America remain consistent from May to June, with
availability in the market considered to be balanced. Discussions surrounding the third quarter
contract are beginning with buyers pushing for a decrease, whilst producers are expected to attempt
to maintain market stability in the form of a rollover. The European BDO market is also gearing
up for quarterly contract discussions with buyers expecting a decrease to reflect the softer Asian
market and balanced market position. Demand remains steady, with PBT volumes impacted by the
weakened automotive sector. In China, the BDO market was stagnant in early June, but downward
price pressure from lengthening supply and softer demand is expected to hit the market later in the
month. However, new PBT start-ups may reduce some of the negative pressure.
PBT
US PBT polymer and compound shipments continue at robust levels underpinned by strong automotive
sales and production, and prices have remained stable over the last month. Producers’ margins
have improved in Q2. In Europe, demand for PBT and its compounds continues to be stable at May
levels. Players expect that demand is unlikely to either significantly improve or fall in the short term.
In Asia and China, demand remains weak and new start-ups continue to overshadow markets.
Polyester Polyols
The North American polyester polyol market has been quite steady from May to June, with demand
remaining quite positive from the construction sector as well as the automotive sector. Following
price increases of an average 5c/lb which were taken on board in April and May, market prices are
reported to be unchanged in June. The European markets for both aliphatic and aromatic polyols
was subdued, with the former particularly affected by the ongoing weakness of the automotive
sector.
PTMEG
The US PTMEG market is steady, although global capacity increases could pressurise pricing later
in the second half. The European market is similarly stable in terms of demand, and pricing has
not changed from May to June. The Chinese spandex market entered its traditional weak season in
May, although this has had little effect on the raw material markets for now. However, players are
still taking a cautious stance as to the short term future. Suppliers were cautious in their shipments
of material and some traders lowered prices to promote sales.
Spandex
Spandex plants in China were operating stably at high rates in June, supported by the current stability
of downstream demand. However, there were signs that sales volume was facing a downward trend
as the slow season begins. Inventories were largely retained at a low level, in the early part of the
month, but in the second half, some weaving mills reduced demand for spandex due to a decline in
orders from end markets. June prices were firmer by about Rmb4000/ton.
PRICE MONITOR
US PRICES
Mar-2013 Apr-2013 May-2013 28-Jun-2013 28-Jun-2013
¢/lb ¢/lb ¢/lb ¢/lb $/ton
Maleic Anhydride Molten Contract Monthly 87.0 - 98.0 85.5 - 95.0 82.0 - 91.0 82.0 - 91.0 DDP 1808 - 2006
Propylene Oxide 97 - 100 92 - 95 84 - 88 83 - 87 DDP 1830 - 1918
1,4-Butanediol * Contract Quarterly 144 - 154 141 - 154 141 - 154 141 - 154 DDP 3108 - 3395
WEST EUROPE PRICES

€/ton €/ton €/ton €/ton $/ton
Maleic Anhydride Contract Price 1665 - 1744 1715 - 1794 ‡ 1715 - 1794 1715 - 1794 DDP 2230 - 2333
Propylene Oxide Merchant 1626 - 1696 1586 - 1656 1522 - 1592 1524 - 1604 DDP 1982 - 2086
1,4-Butanediol Contract Quarterly 2030 - 2150 2045 - 2150 2045 - 2150 2045 - 2150 DDP 2659 - 2796
Polyester Polyols Contract - Aromatic 1770 - 1830 1770 - 1830 1770 - 1830 1770 - 1830 DDP 2302 - 2380
Contract - Aliphatic 2170 - 2250 2170 - 2250 2160 - 2240 2160 - 2240 DDP 2809 - 2913
PBT Contract, unreinforced 3050 - 3350 3050 - 3350 3050 - 3350 3050 - 3350 DDP 3966 - 4356
modified resin
ASIA PRICES
NT$/ton NT$/ton NT$/ton NT$/ton $/ton
Maleic Anhydride Taiwan Domestic Flake 55000 - 56000 52000 - 53000 51000 - 52500 49000 - 51000 EXW 1635 - 1702
CHINA DOMESTIC PRICES: East China

Rmb/ton Rmb/ton Rmb/ton Rmb/ton $/ton
Maleic Anhydride 11800 - 12500 11200 - 11800 11400 - 12000 11000 - 11600 EXW 1792 - 1890
Propylene Oxide 12100 - 13300 11800 - 12350 11800 - 11900 11800 - 12000 EXW 1923 - 1955
1,4-Butanediol 14500 - 15200 14300 - 14500 13700 - 14100 13800 - 14100 EXW 2248 - 2297
PTMEG 27400 - 29200 27400 - 28800 27200 - 28700 27000 - 28500 EXW 4399 - 4644
PBT Virgin 14400 - 14700 13800 - 14000 13000 - 13400 12800 - 13200 DDP 2086 - 2151
Spandex (Elastane) Filament, 40 den 43000 - 47000 44000 - 47000 46000 - 54000 47000 - 48000 EXW 7658 - 7821
CHINA IMPORT PRICES

$/ton $/ton $/ton $/ton
Propylene Oxide 1800 - 1850 1550 - 1650 1520 - 1570 1550 - 1580 CFR
1,4-Butanediol 2000 - 3000 1920 - 3000 1880 - 3000 1850 - 3000 CFR
PTMEG 4000 - 4450 4000 - 4450 3950 - 4450 3850 - 4450 CFR
PBT Virgin 2050 - 2090 2000 - 2020 1880 - 1900 1850 - 1900 CFR
* = Small consumer price

‡ = Revised
Current one US dollar equivalent (28-Jun-2013)

€: 0.769 £: 0.659 (1/1.517) Yen: 99.3 NT$: 29.97 Won: 1142.05 Rmb: 6.14 Rs: 59.43
Current one € equivalent (28-Jun-2013)
US$: 1.300 £: 0.857 (1/1.167) Yen: 129.2
Information contained in this report is obtained from sources believed to be reliable, however no responsibility nor liability will be accepted by Tecnon
OrbiChem for commercial decisions claimed to have been based on the content of the report.
Reproduction of any part of this work by any process whatsoever without written permission of Tecnon OrbiChem is strictly forbidden.
Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

ӋḐ䗑䏾
㕢೑Ӌ
2013ᑈ3᳜ 2013ᑈ4᳜ 2013ᑈ5᳜ 2013ᑈ6᳜28᮹ 2013ᑈ6᳜28᮹
㕢ߚ/⺙㕢ߚ/⺙㕢ߚ/⺙㕢ߚ/⺙㕢‫ܗ‬/ৼ
乎䜤 ⎆ᗕড়ৠ 87.0 - 98.0 85.5 - 95.0 82.0 - 91.0 82.0 - 91.0 ᅠ⿢ৢѸ䋻 1808 - 2006
⦃⇻ϭ⛋ 97 - 100 92 - 95 84 - 88 83 - 87 ᅠ⿢ৢѸ䋻 1830 - 1918
1,4-ϕѠ䝛 * ড়ৠ ᄷᑺ 144 - 154 141 - 154 141 - 154 141 - 154 ᅠ⿢ৢѸ䋻 3108 - 3395
㽓⃻Ӌ
⃻‫ܗ‬/ৼ ⃻‫ܗ‬/ৼ ⃻‫ܗ‬/ৼ ⃻‫ܗ‬/ৼ 㕢‫ܗ‬/ৼ
乎䜤 ড়ৠ ӋḐ 1665 - 1744 1715 - 1794 ‡ 1715 - 1794 1715 - 1794 ᅠ⿢ৢѸ䋻 2230 - 2333
⦃⇻ϭ⛋ ଚϮ㑻 1626 - 1696 1586 - 1656 1522 - 1592 1524 - 1604 ᅠ⿢ৢѸ䋻 1982 - 2086
1,4-ϕѠ䝛 ড়ৠ ᄷᑺ 2030 - 2150 2045 - 2150 2045 - 2150 2045 - 2150 ᅠ⿢ৢѸ䋻 2659 - 2796
㘮䝃໮‫ܗ‬䝛 ড়ৠ - 㢇佭ᮣ 1770 - 1830 1770 - 1830 1770 - 1830 1770 - 1830 ᅠ⿢ৢѸ䋻 2302 - 2380
ড়ৠ - 㛖㙾ᮣ 2170 - 2250 2170 - 2250 2160 - 2240 2160 - 2240 ᅠ⿢ৢѸ䋻 2809 - 2913
㘮ᇍ㣃Ѡ⬆䝌Ѡϕ䝃 ড়ৠ,᳾๲ᔎᬍᗻⱘᷥ㛖 3050 - 3350 3050 - 3350 3050 - 3350 3050 - 3350 ᅠ⿢ৢѸ䋻 3966 - 4356
Ѯ⌆Ӌ
ৄᏕ/ৼ ৄᏕ/ৼ ৄᏕ/ৼ ৄᏕ/ৼ 㕢‫ܗ‬/ৼ
乎䜤 ৄ⑒೑‫ݙ‬೎ᗕ 55000 - 56000 52000 - 53000 51000 - 52500 49000 - 51000 ߎॖӋ 1635 - 1702
Ё೑ ೑‫ݙ‬Ӌ:ढϰ
‫ܗ‬/ৼ ‫ܗ‬/ৼ ‫ܗ‬/ৼ ‫ܗ‬/ৼ 㕢‫ܗ‬/ৼ
乎䜤 11800 - 12500 11200 - 11800 11400 - 12000 11000 - 11600 ߎॖӋ 1792 - 1890
⦃⇻ϭ⛋ 12100 - 13300 11800 - 12350 11800 - 11900 11800 - 12000 ߎॖӋ 1923 - 1955
1,4-ϕѠ䝛 14500 - 15200 14300 - 14500 13700 - 14100 13800 - 14100 ߎॖӋ 2248 - 2297
㘮ಯ⇶ਟୗ 27400 - 29200 27400 - 28800 27200 - 28700 27000 - 28500 ߎॖӋ 4399 - 4644
㘮ᇍ㣃Ѡ⬆䝌Ѡϕ䝃 ॳ⫳ 14400 - 14700 13800 - 14000 13000 - 13400 12800 - 13200 ᅠ⿢ৢѸ䋻 2086 - 2151
⇼㒊(ᔍᗻ㑸㓈) 40 ᮺሐ 43000 - 47000 44000 - 47000 46000 - 54000 47000 - 48000 ߎॖӋ 7658 - 7821
Ё೑䖯ষӋ
㕢‫ܗ‬/ৼ 㕢‫ܗ‬/ৼ 㕢‫ܗ‬/ৼ 㕢‫ܗ‬/ৼ
⦃⇻ϭ⛋ 1800 - 1850 1550 - 1650 1520 - 1570 1550 - 1580 ࠄኌӋ
1,4-ϕѠ䝛 2000 - 3000 1920 - 3000 1880 - 3000 1850 - 3000 ࠄኌӋ
㘮ಯ⇶ਟୗ 4000 - 4450 4000 - 4450 3950 - 4450 3850 - 4450 ࠄኌӋ
㘮ᇍ㣃Ѡ⬆䝌Ѡϕ䝃 ॳ⫳ 2050 - 2090 2000 - 2020 1880 - 1900 1850 - 1900 ࠄኌӋ
* = ᇣᅶ᠋Ӌ
‡ = ᷵ℷ
ᔧ໽㕢‫ܥܗ‬ᤶ⥛ (2013ᑈ6᳜28᮹)
⃻‫ܗ‬: 0.769 㣅䬥: 0.659 (1/1.51 ᮹‫ܗ‬: 99.3 ᮄৄᏕ: 29.97 䶽‫ܗ‬: 1142.05 Ҏ⇥Ꮥ: 6.14 श↨: 59.43
ᔧ໽⃻‫ܥܗ‬ᤶ⥛ (2013ᑈ6᳜28᮹)
㕢‫ܗ‬: 1.300 㣅䬥: 0.857 (1/1.16 ᮹‫ܗ‬: 129.2
ᴀ᡹ਞ᠔ࣙ৿ⱘֵᙃⱚᴹ㞾ৃֵⱘ䌘᭭ᴹ⑤ˈ
Ԛᰃᇍӏԩໄ⿄䎳᥂ᴀ᡹ਞ‫ݙ‬ᆍ᠔‫ⱘخ‬ଚϮ‫އ‬ㄪˈ㣅೑⋄ৃ㤷ܼ⧗࣪ᄺ᳝䰤݀ৌὖϡ䋳䋷Ǆ
᳾㒣㣅೑⋄ৃ㤷ܼ⧗࣪ᄺ᳝䰤݀ৌк䴶䆌ৃˈϹ⽕ҹӏԩᮍᓣᇍᴀ᡹ਞⱘӏԩ‫ݙ‬ᆍࡴҹᡘ㺁Ǆ

Front PAGE SUBSCRIBER NOTE: INCOTERM CHANGES IN PRICE MONITOR

PRICE MONITOR
ECONOMIC NEWS DDP - Delivered Duty Paid
Please note that, in order to bring consistency with Incoterms 2010, price series previously described
INDUSTRY NEWS
using the non-incoterms DEL, FD, Fr.Pd and Fr.Eq will, from now on, be described by the incoterm DDP.
Feedstocks
BUTANE 完税后交货
BUTADIENE 请注意，为了保持与2010年国际贸易术语解释通则的一致性,从现在开始,之前使用非国际贸易术
North America 语送到价, 送到价, 运费已付和平均运费描述的价格系列将会被代替描述为完税后交货.
Europe
Asia
ECONOMIC NEWS
NATURAL GAS
Propylene Oxide US building permits for privately-owned housing have fallen by 3.1% in May to a seasonally adjusted rate
North America of 974,000 but it is 20.8% above the May 2012 estimate of 806,000. Housing starts in May were at a
Europe rate of 914,000, 6.8% above the revised April estimate of 856,000 and 28.6% above May 2012.
China
The final Markit US Manufacturing Purchasing Managers’ Index (PMI) signalled a further improvement in
MALEIC ANHYDRIDE May with a reading of 52.3, up slightly from the six-month low of 52.1 in April. Production levels increased
North America in May as the number of new orders rose in the domestic market, whereas new export orders have
changed little over the month.
West Europe
China The unemployment rate in the Eurozone was 12.2% in April, up from 12.1% in March. In the EU27, the
BDO & DERIVATIVES unemployment rate was unchanged in April at 11.0%. In both zones, rates have increased compared to
April 2012 when they were 11.2% and 10.3% respectively, according to Eurostat.
1,4 BUTANEDIOL
North America Total US nonfarm payroll employment increased by 175,000 in May. Both the number of unemployed
West Europe persons, at 11.8 million, and the unemployment rate, at 7.6%, were unchanged in May, the US Bureau f
Asia Labour Statistics has reported,
PBT The Organisation for Economic Co-operation and Development (OECD) has again cut its growth forecasts
North America for the Eurozone, saying that it will shrink by 0.6% this year, with the UK forecast revised down to 0.8%
West Europe growth this year and 1.1% in 2014. In its twice-yearly Economic Outlook, the OECD reports US activity is
projected to rise by 1.9% this year and by a further 2.8% in 2014 and in Japan GDP is expected to grow
Asia
by 1.6% in 2013 and 1.4% in 2014. It also expects China’s annual growth to be about 8% over the next
China two years.
Polyester Polyols
GDP in the Eurozone fell by 0.2% and by 0.1% in the EU27 in the first quarter of 2013, compared to the
North America
previous quarter, according to a second estimate by Eurostat. In Q4 2012, growth rates were down by
West Europe 0.6% and 0.5% respectively. Compared to Q1 2012, GDP has fallen by 1.1% in the Eurozone and by
PTMEG 0.7% in the EU27.
North America
The Bureau of Economic Analysis (BEA) has released its “second” estimate of real GDP growth in the US,
West Europe reporting it has increased at an annual rate of 2.4% in the first quarter of 2013 compared to Q4 2012. The
China data is based on more complete source data, which was not available for the “advance” estimate in April
(+2.5%). The BEA reports the “second” estimate has taken into account that increases in private inventory
Spandex
investment, both in exports and in imports, were less than previously estimated, but the general picture of
Asia overall economic activity has not greatly changed.
BIO BDO & RELATED PRODUCTS
In China, the Producer Price Index (PPI) for manufactured goods fell in May by 2.9% year on year and 0.6
Bio Routes to 1,4-Butanediol
% from last month, according to the National Bureau of Statistics of China. From January to May the PPI for
Bio-based BDO Market manufactured goods decreased 2.3% year on year. The Consumer Price Index (CPI), however, has gone
Developments up by 2.1% year on year but it is down by 0.6% from last month.
Bio-Succinic Acid
US light-vehicle sales totalled 1.4 million in May, up from April’s figure of 1.28 million, according to Wards
Access Tecnon Auto. Annual sales of 15.2 million mark an increase from April’s 14.9 (when sales had hit the lowest since
orbichem online

Front PAGE October last year). Sales have been driven by large trucks and cross/utility vehicles followed by sales in
PRICE MONITOR the lower-small and lower-luxury sector.
ECONOMIC NEWS
Demand for new passenger cars in the EU fell in May to their lowest level since 1993, dropping by 5.9%
INDUSTRY NEWS
to 1,042,742 units from April. In the first five months of this year, new cars registered in the region were
Feedstocks 6.8% less year on year. Most of the major markets faced a downturn in May ranging from -2.6% in Spain,
BUTANE to -8.0% in Italy, -9.9% in Germany and -10.4% in France. The UK is once again the only country to have
BUTADIENE posted growth at +11.0%.
North America
In China, 1,396,900 passengers cars were sold in May, 3.09% down from April but they are up 9.04%
Europe compared to the same period last year, according to the China Association of Automobile Manufacturers
Asia (CAAM). From January to May, passenger car sales have increased 14.73% year on year to about
7,261,600 units.
NATURAL GAS
Propylene Oxide Car sales have fallen for the seventh consecutive month in India despite the high discounts on offer, according
North America to the Society of Indian Automobile Manufacturers (SIAM). Data shows that car sales fell 12.3% year on
Europe year in May with a total of 143, 216 cars sold. The association now expects job losses as poor sales are
forcing manufacturers to cut back production.
China
MALEIC ANHYDRIDE INDUSTRY NEWS
North America
Chemtura Corporation has announced the launch of its thermoplastic polyurethane product line. The
West Europe
company states that its strong position in cast urethanes, with over 300 prepolymer products, has allowed
China it to leverage its cutting edge urethane technologies in designing its TPU products.
BDO & DERIVATIVES
Lubrizol is launching eight new medical-grade aromatic thermoplastic polyurethane (TPU) products to offer
1,4 BUTANEDIOL
more options for advanced wound care and medical device manufacturers. The new additions to the range
North America are a mix of polyester and polyether aromatic TPU products offering high moisture vapour transmission rate
West Europe for advanced wound care applications, stiffness and non-kinking properties for tubing, backings, film or
Asia catheters.
PBT Saudi International Petrochemical (Sipchem) has announced it expects to start operations at its new 63 ktpa
North America PBT plant in Al Jubail, Saudi Arabia by end 2014. The project investment cost is estimated at Saudi Riyals
West Europe 617 million (about $164.5 million). Sipchem Chemicals Company (Sipchem’s affiliate) has signed a loan
agreement with the Saudi Industrial Development Fund (SIDF) of Saudi Riyals 257.5 million (around $68.7
Asia
million) payable in ten years to support the financing of the plant construction. The remaining investment
China cost of the project will be funded by shareholders and banks. Additionally, Sipchem will source part of its
Polyester Polyols feedstock requirement from a 75 ktpa 1,4-butanediol plant at the site, which it started up in 2005. The
other feedstock, PTA, will be sourced from external sources.
North America
West Europe FEEDSTOCKS
PTMEG
North America
BUTANE
West Europe The North Sea butanes contract index was reduced by $80.50/ton, to $783.50/ton fob terminal for May.
China LPG cargoes from the US and West Africa have headed to Asia rather to Europe and that together with
lower than usual output from Braefoot Bay has kept supply snug during the month. In the week ending 24
Spandex
May large cargoes were trading at around 89% of naphtha, or $720-725/ton cif.
Asia
BIO BDO & RELATED PRODUCTS In the coaster market there was steady demand in the middle of the month from the petrochemical sector but
not for gasoline blending after the switch to lower-RVP summer grades. Prices weakened and bids were in
the area of 80-82% times naphtha - $675-690/ton fob. In the week of 20-24 May prices dropped further
Bio-based BDO Market to around 79% of naphtha or $650/ton fob.
Developments
Sonatrach of Algeria reduced its contract price by $95/ton fob to $715/ton for May. The Mediterranean
Bio-Succinic Acid
butanes market was balanced in mid-May with petrochemical demand taking up most of the product
Access Tecnon from the southern French refineries leaving little available for export. Butane prices followed those in in
orbichem online the Northwest downwards to $690-700/ton cfr. Saudi Aramco’s contract price for May was $775/ton

Front PAGE fob, down by $60/ton from April. Aramco was reported to be offering a full spot cargo of butanes from
PRICE MONITOR Yanbu in May. With material out of Iran being exported to Asia during the month butanes have been freely
ECONOMIC NEWS available in the region. A small contract price reduction is predicted for June. In late May n-butane at
Mont Belvieu was trading at 125-126 c/gal and iso-butane at 127-128 c/gal, both only 4-5 c/gal below
INDUSTRY NEWS
the levels of late May
Feedstocks
BUTANE BUTADIENE
BUTADIENE
North America
North America
Europe The May butadiene contract in the US was settled at 79 c/lb – down by 5 c/lb from April - by the three
Asia producers that account for 85% of the market. The fourth nominating producer originally posted a price
of 85 c/lb for May: its final number is not yet known. The contract price for May was reduced largely
NATURAL GAS
because it was thought that the April figure of 84 c/lb was high enough to attract imports from Asia.
Propylene Oxide Unfortunately for domestic producers a 79-cent contract with spot at 75-80 c/lb proved not to be low
North America enough and another reduction, perhaps around 5 c/lb, seemed likely for June. However, a whole series of
Europe cracker outages in the second half of the month has tightened supply. Some of the units involved, such as
Shell’s GO-1 at Norco, run on liquid feeds and so are significant sources of butadiene.
China
MALEIC ANHYDRIDE Europe
North America
In Europe, the contract price for May was settled at €1340/ton ddp, down by €75/ton from April. Total’s
West Europe
cracker at Gonfreville went down at the end of April. Indications are that the plant may be down for several
China weeks. Butadiene capacity at Gonfreville is 65,000 tpa. Total has declared force majeure on butadiene
BDO & DERIVATIVES at the site. Solvay’s adiponitrile plant at Chalampe, France, began a shutdown on 20 May. The plant
consumes around 1,000 tons per day of butadiene.
1,4 BUTANEDIOL
North America Asia
West Europe
Asia Spot butadiene in Asia was stable at around $1400/ton cfr at the beginning of May. By the middle of the
month numbers had recovered to $1450-1520/ton cfr. In Korea YNCC reduced its contract price for April
PBT (settled retrospectively) by $307/ton to $1451/ton ddp by pipeline. In Taiwan, Formosa Plastics and Chemicals
North America lowered its contract price for April by $328/ton to $1400/ton ddp. Also in Taiwan TSRC reduced the operating
West Europe rate of its SBR plant from 90% in April to 80% in May because of the weak market.
Asia
NATURAL GAS
China
Polyester Polyols Crude oil prices were fairly steady during May. Brent traded in the range of $100-105/bbl, mainly at
$102-104/bbl, reaching a high of $105/bbl on 20 May. WTI was priced mainly in the range of $94-
North America
96/bbl. On 29 May Brent was trading at around $104/bbl and WTI at close to $94.5/bbl
West Europe
PTMEG Spot natural gas prices at the Henry Hub were in the region of $4.30/mmBtu at the beginning of May but fell
during the first half of the month to 3.86/mmBtu on the 16th. Demand for cooling via air conditioning rather than
North America
heating has taken over as a driver of demand and warmer weather saw prices firm to around $4.19/mmBtu in
West Europe the week of 20-24 May and then weaken to $4.15/mmBtu on the 29th. On the NYMEX futures market the June
China contract was trading at around $4.15/mmBtu in late May. When July took over as the front month it opened at
just below $4.00/mmBtu. Contracts for the outer months were priced at $3.980-3.99/mmBtu until November
Spandex
2013 which traded at $4.00 with prices peaking in January at $4.31/mmBtu.
Asia
BIO BDO & RELATED PRODUCTS Inventories as of 17 May were 2,053 Bcf. That is 680 Bcf, or 24.9%, below last year’s record level but
only 84 Bcf, or 3.9%, below the five-year average. After a net injection of 88 Bcf stocks rose to 2,141
Bdf in the week ending 24 May. That is 664 Bcf (23.7%) below last year and 88 Bcf (3.9%) below the
Bio-based BDO Market five-year average level.
Developments
The production of dry gas from shale formations has been running at around 27.5 Bcf per day with
Bio-Succinic Acid
production levels continuing to increase in the Marcellus field in Pennsylvania and West Virginia and the
Access Tecnon Antrim shale in Minnesota, Indiana and Ohio.
orbichem online

Front PAGE PROPYLENE OXIDE

PRICE MONITOR
ECONOMIC NEWS North America
INDUSTRY NEWS
Feedstock propylene looks likely to settle up by 2c/lb in June, although for now this remains unconfirmed
Feedstocks at the time of going to press. However, propylene oxide contracts which in the US are based on the
BUTANE previous month’s propylene contract settlement have moved down this month. May’s monthly propylene
BUTADIENE settlement took the form of a 1c/lb decrease which left the PO settlement down at 0.8c/lb. May had seen
a substantial decrease amounting to 8c/lb.
North America
Europe Demand is understood to be steady, with rigid polyol demand seasonally strengthening at with the rise in
Asia demand during the construction season. Flexible polyol demand is steady. Monopropylene glycol off take
is steady, with UPR demand pushing volumes in this market.
NATURAL GAS
Propylene Oxide July will see a small upward movement on the monthly propylene oxide contract based on the 2c/lb
North America increase in the propylene contract. Propylene availability in May had been curtailed by a number of
Europe production outages, although this does not seem to have affected PO supply significantly.
China
UNITED STATES EXPORTS
MALEIC ANHYDRIDE PROPYLENE OXIDE
North America March 2013 Jan-Mar 13 Jan-Mar 12
Tons $/Ton Tons Tons
West Europe
Netherlands 11,594 1,879 13,596 15,580
China Taiwan 5,937 1,631 13,303 7,224
Mexico 2,814 1,996 12,007 10,825
BDO & DERIVATIVES
Indonesia 2,995 1,850 5,830 889
1,4 BUTANEDIOL Colombia 1,050 2,732 4,894 3,207
Venezuela - - 4,099 1,907
North America Brazil 432 2,130 1,312 2,471
West Europe Others - - 108 169
China - - - 2,399
Asia Total 24,822 55,149 44,671
PBT $/ton figures are calculated from customs data and may not reflect market prices
North America
West Europe Europe
Asia
The European propylene oxide market is still described as reasonably balanced, and demand from the
China main end use sectors is ticking over, although not especially strong. Polyol demand varies from grade to
Polyester Polyols grade. Flexible foam demand has dipped below expectation impacting offtake of polyols whilst rigid foam
is in its peak season for use in construction applications. The restriction in availability of pure MDI has in
North America
some cases impacted demand for polyols in PU applications. Monopropylene glycol demand is lacklustre
West Europe as a result of seasonality and the under par performance of the European UPR market.
PTMEG
The propylene oxide contract price for June has moved up by €12/ton on the basis of the €15/ton
North America
increase in feedstock propylene. Availability of propylene oxide in Europe is reported to be balanced, after
West Europe a couple of producers took maintenance shutdowns in April.
China
Spandex EUROPEAN UNION EXPORTS
PROPYLENE OXIDE
Asia
March 2013 Jan-Mar 13 Jan-Mar 12
BIO BDO & RELATED PRODUCTS Tons $/Ton Tons Tons
Bio Routes to 1,4-Butanediol Switzerland 352 1,764 1,262 1,003

Others 105 2,068 234 65
Bio-based BDO Market Taiwan - - - 1,325
Total 457 1,496 2,393
Developments
The figures in this table are the total, summed over all 27 EU countries, of trade with
Bio-Succinic Acid countries outside the EU. Readers should note, however, that some EU countries may have
suppressed data if trade for this product is commercially sensitive, so it is possible that
Access Tecnon there is under-reporting in the above figures.
$/ton figures are calculated from customs data and may not reflect market prices
orbichem online

Front PAGE
EUROPEAN UNION EXPORTS
PRICE MONITOR PROPYLENE OXIDE
ECONOMIC NEWS (1,000 Metric Tons)
Month 2010 2011 2012 2013 2013
INDUSTRY NEWS
$/ton
Feedstocks Jan 2.1 5.8 0.4 0.4 1,919
BUTANE Feb 0.4 0.4 1.6 0.6 1,933
Mar 2.4 0.5 0.4 0.5 1,835
BUTADIENE Apr 0.5 0.5 0.4 - -
North America May 0.2 0.4 0.3 - -
Jun 0.5 0.4 1.5 - -
Europe Jul 0.4 0.4 0.4 - -
Asia Aug 0.6 4.5 0.3 - -
Sep 0.5 2.3 0.5 - -
NATURAL GAS Oct 4.6 0.4 0.3 - -
Nov 3.5 0.3 0.5 - -
Propylene Oxide
Dec 52.7 0.3 0.3 - -
North America Jan-Mar 4.8 6.6 2.4 1.5 1,899
Europe % Change (55.9) 36.5 (63.8) (37.4)
China Jan-Dec 68.4 16.1 7.0

% Change 13.1 (76.4) (56.3)
MALEIC ANHYDRIDE The figures in this table are the total, summed over all 27 EU countries, of trade with
North America countries outside the EU. Readers should note, however, that some EU countries may
have suppressed data if trade for this product is commercially sensitive, so it is possible
West Europe that there is under-reporting in the above figures.
China
BDO & DERIVATIVES
1,4 BUTANEDIOL EUROPEAN UNION EXPORTS
PROPYLENE OXIDE
North America
(1,000 Metric Tons)
West Europe
Month 2011 2012 2013 2012 2013
Asia $/ton $/ton
Jan 5.8 0.4 0.4 2,039 1,919
PBT
Feb 0.4 1.6 0.6 1,932 1,933
North America Mar 0.5 0.4 0.5 1,972 1,835
Apr 0.5 0.4 - 2,029 -
West Europe
May 0.4 0.3 - 1,934 -
Asia Jun 0.4 1.5 - 1,832 -
Jul 0.4 0.4 - 1,988 -
China
Aug 4.5 0.3 - 2,018 -
Polyester Polyols Sep 2.3 0.5 - 1,934 -
Oct 0.4 0.3 - 1,972 -
North America Nov 0.3 0.5 - 2,113 -
West Europe Dec 0.3 0.3 - 2,102 -
Jan-Mar 6.6 2.4 1.5 1,957 1,899

PTMEG % Change 36.5 (63.8) (37.4) 0.7 (3.0)
North America Jan-Dec 16.1 7.0
West Europe % Change (76.4) (56.3)
China countries outside the EU. Readers should note, however, that some EU countries may
Spandex that there is under-reporting in the above figures.
Asia
Bio-based BDO Market
Developments
Bio-Succinic Acid
Access Tecnon
orbichem online

Front PAGE
EUROPEAN UNION IMPORTS
PRICE MONITOR PROPYLENE OXIDE
ECONOMIC NEWS March 2013 Jan-Mar 13 Jan-Mar 12
INDUSTRY NEWS
United States - - 6,287 8,002
Feedstocks Others - - 48 2
BUTANE Total - 6,335 8,004
BUTADIENE countries outside the EU. Readers should note, however, that some EU countries may have
suppressed data if UNION
EUROPEAN trade for thisIMPORTS
product is commercially sensitive, so it is possible that
North America there is under-reporting in the above figures.
PROPYLENE OXIDE
Europe $/ton figures are calculated from customs data and may not reflect market prices
(1,000 Metric Tons)
Asia Month 2010 2011 2012 2013 2013
$/ton
NATURAL GAS
Jan - - - 4.3 1,860
Propylene Oxide Feb 4.5 2.7 5.4 2.0 2,014
North America Mar - 2.8 2.6 - 59,850
Apr 1.3 2.9 7.5 - -
Europe May - 5.6 5.2 - -
China Jun - 6.3 5.0 - -
Jul - 5.5 - - -
MALEIC ANHYDRIDE Aug - 5.5 - - -
Sep 0.4 1.6 4.7 - -
North America Oct - - 2.5 - -
West Europe Nov - 2.8 5.6 - -
Dec 2.8 - 5.1 - -
China
Jan-Mar 4.5 5.5 8.0 6.3 1,910
BDO & DERIVATIVES % Change 195.3 22.6 45.1 (20.8)
1,4 BUTANEDIOL Jan-Dec 9.0 35.7 43.6

% Change (64.5) 296.7 22.1
North America
West Europe countries outside the EU. Readers should note, however, that some EU countries may
Asia that there is under-reporting in the above figures.
PBT
North America
West Europe EUROPEAN UNION IMPORTS
Asia PROPYLENE OXIDE
China (1,000 Metric Tons)

Month 2011 2012 2013 2012 2013
Polyester Polyols $/ton $/ton
North America Jan - - 4.3 24,720 1,860
Feb 2.7 5.4 2.0 2,252 2,014
West Europe
Mar 2.8 2.6 - 1,966 59,850
PTMEG Apr 2.9 7.5 - 2,009 -
May 5.6 5.2 - 1,953 -
North America Jun 6.3 5.0 - 2,165 -
West Europe Jul 5.5 - - - -
Aug 5.5 - - 36,066 -
China Sep 1.6 4.7 - 1,911 -
Oct - 2.5 - 1,865 -
Spandex Nov 2.8 5.6 - 1,831 -
Asia Dec - 5.1 - 2,002 -
Jan-Mar 5.5 8.0 6.3 2,159 1,910

BIO BDO & RELATED PRODUCTS % Change 22.6 45.1 (20.8) (82.6) (11.5)
Bio Routes to 1,4-Butanediol Jan-Dec 35.7 43.6
% Change 296.7 22.1
Developments countries outside the EU. Readers should note, however, that some EU countries may
Bio-Succinic Acid that there is under-reporting in the above figures.
Access Tecnon
orbichem online

Front PAGE China

PRICE MONITOR
ECONOMIC NEWS The Chinese domestic PO market was stable in early June, with some signs of weakness. Upstream
propylene producers attempted to raise prices due to low inventories, but downstream soft demand
INDUSTRY NEWS
suppressed growth. Propylene was priced at Rmb9600-9650/ton in Shandong. Quotations were steady,
Feedstocks but with the restart of the Befar facility, supply in the market increased, and this pushed values down.
BUTANE Expectations for June were fairly weak due to rising supply of imported PO and the fact that the polyether
BUTADIENE polyol market was in its slow season.
North America
CHINESE IMPORTS
Europe
PROPYLENE OXIDE
Asia April 2013 Jan-Apr 13 Jan-Apr 12
NATURAL GAS
Thailand 23,986 1,583 58,079 70,021
Propylene Oxide Singapore 12,213 1,657 48,667 44,890
North America Japan - - 10,997 2
United States - - 2,952 2,355
Europe Saudi Arabia - - 2,265 56,269
China Others 40 - 40 -
Total 36,239 123,000 173,537
MALEIC ANHYDRIDE $/ton figures are calculated from customs data and may not reflect market prices
North America
West Europe
JAPANESE IMPORTS
China
PROPYLENE OXIDE
BDO & DERIVATIVES December 2010 Jan-Dec 10 Jan-Dec 09
1,4 BUTANEDIOL
South Korea - - - 1,999
North America Total - - 1,999
West Europe $/ton figures are calculated from customs data and may not reflect market prices
Asia
PBT
TAIWANESE IMPORTS
North America PROPYLENE OXIDE
West Europe March 2013 Jan-Mar 13 Jan-Mar 12
Asia
United States 4,297 1,558 9,326 7,964
China Thailand 900 1,429 5,301 5,720
Singapore - - 2,031 7,624
Polyester Polyols
Saudi Arabia - - 1,005 3,408
North America Others 93 2,456 93 -
Total 5,290 17,756 24,716
West Europe
PTMEG
North America
SOUTH KOREAN IMPORTS
West Europe
PROPYLENE OXIDE
China March 2013 Jan-Mar 13 Jan-Mar 12
Spandex
Japan 10,686 1,632 33,630 31,923
Asia Singapore 3,416 1,699 8,364 12,075
Thailand 1,989 1,656 3,990 3,023
United States - - 2,098 -
Bio Routes to 1,4-Butanediol Others 1 - 1 -
Total 16,092 48,083 47,021
Bio-based BDO Market $/ton figures are calculated from customs data and may not reflect market prices
Developments
Bio-Succinic Acid
Access Tecnon
orbichem online
10 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE MALEIC ANHYDRIDE

PRICE MONITOR
INDUSTRY NEWS
The US maleic market is still showing signs of tightness in early June, after a series of production issues the
Feedstocks proliferated during this period. At least one producer is understood to still be facing reduced output and
BUTANE has been looking to source material for June. Several producers are reporting unchanged pricing from
BUTADIENE May into June with a drop in total of about 5c/lb since the beginning of the year. This contrasts with a
very big drop in butanes prices over the same period. Maleic anhydride prices are not dropping as fast
North America
as n-butane prices, apparently because of the tightness in the market, which has allowed producers to hold
Europe on to some margin.
Asia
NATURAL GAS UNITED STATES IMPORTS
MALEIC ANHYDRIDE
Propylene Oxide
North America Tons $/Ton Tons Tons
Europe South Korea 330 1,877 819 388

Brazil 180 2,239 400 720
China Others 168 1,608 364 540
China 111 1,703 183 328
MALEIC ANHYDRIDE
Total 789 1,766 1,976
North America $/ton figures are calculated from customs data and may not reflect market prices
West Europe
China
UNITED STATES EXPORTS
BDO & DERIVATIVES MALEIC ANHYDRIDE
1,4 BUTANEDIOL March 2013 Jan-Mar 13 Jan-Mar 12
North America Mexico 1,704 1,521 4,488 4,730
West Europe Brazil 286 1,526 1,198 149
Others 398 1,452 1,131 1,487
Asia Colombia 387 1,495 1,034 920
Canada 218 1,894 877 7,610
PBT
Germany 377 1,373 833 255
North America United Kingdom 311 1,201 650 1,732
Total 3,681 10,211 16,883
West Europe
Asia
China
Polyester Polyols West Europe
North America
The European maleic anhydride market is relatively quiet in June with no problems heard on the production
West Europe side and no issues on the demand side. Demand in the second quarter is down on same time last year,
PTMEG however, and, overall, the market is subdued. Demand for May was softer than April but this is not just
due to a relatively weak market but also the incidence of several holidays that shut downstream production
North America
in May. June consumption is expected to be similar to April. Benzene-based plants in Italy and Poland
West Europe remained out of operation due to the high cost of benzene.
China
Spandex EUROPEAN UNION IMPORTS
MALEIC ANHYDRIDE
Asia
BIO BDO & RELATED PRODUCTS Tons $/Ton Tons Tons
Bio Routes to 1,4-Butanediol United States 823 1,461 1,581 4,046

Bosnia & Herzegovi 382 1,856 1,334 1,407
Bio-based BDO Market Others 201 1,590 609 2,149
Taiwan - - 286 1,125
Developments South Korea 149 1,785 256 567
Bio-Succinic Acid Israel 116 1,693 116 3
Total 1,671 4,182 9,297
Access Tecnon The figures in this table are the total, summed over all 27 EU countries, of trade with
countries outside the EU. Readers should note, however, that some EU countries may have
orbichem online suppressed data if trade for this product is commercially sensitive, so it is possible that
there is under-reporting in the above figures.
Front PAGE
EUROPEAN UNION EXPORTS
PRICE MONITOR MALEIC ANHYDRIDE
INDUSTRY NEWS
Turkey 221 1,613 704 641
Feedstocks Others 71 1,885 212 652
BUTANE Total 292 916 1,293
BUTADIENE countries outside the EU. Readers should note, however, that some EU countries may have
suppressed data if trade for this product is commercially sensitive, so it is possible that
North America there is under-reporting in the above figures.
Europe $/ton figures are calculated from customs data and may not reflect market prices
Asia
China
NATURAL GAS
Propylene Oxide In line with weaker feedstock benzene prices, China maleic anhydride prices have also lost their upward
North America momentum and fallen back since early May. This trend was reversed toward the end of May when
Europe recovering coke benzene prices and improved buying sentiment shifted market sentiment again, and
maleic anhydride prices showed an upward correction of Rmb100/ton in early June. But by 5 June,
China
maleic anhydride ex-works prices were assessed at Rmb11000-11600/ton ($1792-1889/ton), showing
MALEIC ANHYDRIDE a decrease of Rmb400/ton over levels seen one month ago.
North America
West Europe CHINESE EXPORTS
MALEIC ANHYDRIDE
China
April 2013 Jan-Apr 13 Jan-Apr 12
BDO & DERIVATIVES Tons $/Ton Tons Tons
Saudi Arabia 309 1,514 2,719 3,000
1,4 BUTANEDIOL
India 843 1,781 2,520 9,182
North America Others 727 1,824 2,435 5,233
Turkey 379 1,801 1,707 3,493
West Europe
Russia 260 1,742 998 1,074
Asia Egypt 342 1,796 902 1,005
UAE 210 1,796 778 1,287
PBT Malaysia 105 1,700 489 860
North America United States 198 1,914 477 366
Kuwait 176 1,750 418 264
West Europe Singapore 202 1,743 224 260
Asia Indonesia 120 1,619 120 200
Total 3,871 13,787 26,224
China $/ton figures are calculated from customs data and may not reflect market prices
Polyester Polyols CHINESE EXPORTS

North America MALEIC ANHYDRIDE
West Europe (1,000 Metric Tons)

Month 2011 2012 2013 2012 2013
PTMEG $/ton $/ton
North America Jan 7.7 2.1 2.3 1,472 1,879

Feb 4.6 5.4 1.7 1,511 1,864
West Europe Mar 7.6 10.8 6.0 1,559 1,899
China Apr 8.9 7.9 3.9 1,584 1,765
May 7.3 4.8 - 1,577 -
Spandex Jun 7.3 3.4 - 1,609 -
Jul 5.0 2.6 - 1,555 -
Asia
Aug 3.7 2.8 - 1,620 -
BIO BDO & RELATED PRODUCTS Sep 3.3 2.7 - 1,679 -
Oct 2.1 1.1 - 1,797 -
Bio Routes to 1,4-Butanediol Nov 2.5 3.5 - 1,842 -
Dec 2.0 1.4 - 1,858 -
Jan-Apr 28.7 26.2 13.8 1,550 1,854
Developments % Change 98.4 (8.8) (47.4) 5.4 19.6
Bio-Succinic Acid Jan-Dec 61.9 48.4
% Change 41.1 (21.8)
Access Tecnon
orbichem online

Front PAGE
SOUTH KOREAN EXPORTS
PRICE MONITOR MALEIC ANHYDRIDE
INDUSTRY NEWS
Others 338 1,770 2,088 2,067
Feedstocks United States 313 1,750 912 534
BUTANE India 200 1,825 781 401
Singapore 221 1,675 764 561
BUTADIENE Russia 160 1,779 440 100
North America Indonesia 240 1,728 440 321
Venezuela 120 1,783 120 18
Europe Total 1,592 5,545 4,002
Asia $/ton figures are calculated from customs data and may not reflect market prices
NATURAL GAS
Propylene Oxide
TAIWANESE EXPORTS
North America MALEIC ANHYDRIDE
Europe March 2013 Jan-Mar 13 Jan-Mar 12
China
India 1,220 1,835 2,340 2,420
MALEIC ANHYDRIDE UAE 940 1,830 2,100 1,940
Others 170 2,814 951 1,438
North America Thailand 372 1,842 848 620
West Europe Saudi Arabia 600 1,876 600 290
Singapore 258 1,815 593 1,350
China Malaysia 210 1,822 572 422
Germany 330 1,464 552 1,042
BDO & DERIVATIVES
Total 4,100 8,556 9,522
1,4 BUTANEDIOL $/ton figures are calculated from customs data and may not reflect market prices
North America
West Europe TAIWANESE EXPORTS
Asia MALEIC ANHYDRIDE
(1,000 Metric Tons)
PBT
Month 2011 2012 2013 2012 2013
North America $/ton $/ton
West Europe Jan 2.6 2.9 2.4 1,408 1,812
Feb 2.8 3.4 2.1 1,426 1,817
Asia
Mar 3.2 3.2 4.1 1,488 1,849
China Apr 3.3 2.2 - 1,620 -
May 2.8 3.2 - 1,530 -
Polyester Polyols Jun 3.0 3.0 - 1,510 -
North America Jul 4.5 3.5 - 1,395 -
Aug 2.7 3.3 - 1,394 -
West Europe Sep 2.5 3.5 - 1,458 -
Oct 3.2 3.4 - 1,585 -
PTMEG
Nov 2.9 3.1 - 1,729 -
North America Dec 2.8 3.5 - 1,793 -
West Europe Jan-Mar 8.6 9.5 8.6 1,441 1,831

% Change 5.1 10.4 (10.1) 1.5 27.1
China
Jan-Dec 36.3 38.3
Spandex % Change (15.7) 5.4
Asia $/ton figures are calculated from customs data and may not reflect market prices

Developments
Bio-Succinic Acid
Access Tecnon
orbichem online

Front PAGE
UNITED STATES, WEST EUROPE & CHINA
PRICE MONITOR MALEIC ANHYDRIDE PRICES
ECONOMIC NEWS US Dollars per Ton
2750
INDUSTRY NEWS Rmb/ton Prices ex VAT Converted to US$/ton US Molten
Contract
Feedstocks 2500
WE Molten DDP
BUTANE 2250 China
Domestic
BUTADIENE 2000
North America
1750
Europe
1500
Asia
1250
NATURAL GAS
1000
Propylene Oxide
North America 750
Europe 500
China 250
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MALEIC ANHYDRIDE
North America Source: Tecnon OrbiChem
West Europe
China 1,4-BUTANEDIOL & DERIVATIVES
BDO & DERIVATIVES
1,4-BUTANEDIOL
1,4 BUTANEDIOL
North America North America
West Europe
Asia 1,4-Butanediol market fundamentals in North America remain consistent from May to June. The PBT
sector continues to benefit from the recovery of the automotive sector in the US, with BDO volume into this
PBT sector above that of last year. May proved to be a strong month for automotive sales in North America,
North America according to figures from Autodata. Car and truck sales rose by 8% in May, which was above forecast.
West Europe
Other key downstream sectors such as PTMEG, thermoplastic polyurethanes and cast elastomers are steady
Asia
this month, with performance overall this quarter having remained stable.
China
Polyester Polyols Thoughts are turning towards the third quarter contract, although discussions have yet to get underway.
Buyers say they are looking to achieve a decrease for BDO contract prices in quarter three. The reason
North America
behind this, they say, is the fact that there is a wide gap between US and Asian prices, and this situation
West Europe is likely to result in US derivative producers becoming less competitive in a global arena. The upcoming
PTMEG increase in BDO capacity in Asia along with the stagnant market demand in China has left the Asian
market weakened and the second half of the year is expected to present some challenges.
North America
West Europe At the time of writing, North American BDO producers have yet to voice any price ideas for the quarter.
China However, it is likely that they will look to prevent margin erosion by keeping any price decreases to a
minimum, and a rollover position is thought likely. The domestic market supply situation is balanced, as it
Spandex
has been throughout the first half of the year.
Asia
BIO BDO & RELATED PRODUCTS As announced last month, BASF plans to produce 1,4-butanediol based on renewable feedstock using
Genomatica’s patented process which uses sugars as a renewable feedstock. The agreement allows BASF
to build a world-scale plant using Genomatica’s process technology. BASF will have renewable BDO
Bio-based BDO Market available in the second half of this year for sampling and product trials. (see BIO BDO Section)
Developments
Bio-Succinic Acid
Access Tecnon
orbichem online

Front PAGE West Europe

PRICE MONITOR
ECONOMIC NEWS European 1,4-butanediol market players are beginning to speculate on the direction of contract prices in
the third quarter. Although price discussions have not yet begun in earnest at the time of writing, there is a
INDUSTRY NEWS
strong expectation amongst buyers that the European price should move down in the third quarter, partially
Feedstocks as a result of the increase of capacity coming onstream in Asia, but also due to the wide gap between
BUTANE price level in Asia and in Europe. Some expect that the main threat to market stability in Europe may come
BUTADIENE from the importing of BDO derivatives from Asia into Europe rather than the importing of the raw material
BDO into Europe.
North America
Europe Producers are expected to opt for a rollover position in an attempt to minimise any loss of margin. However,
Asia at this point, no announcements have been heard. Buyers are clearly expecting to see a downward shift in
price for the third quarter and are likely to push hard with the argument of needing to remain competitive
NATURAL GAS
with their Asian counterparts.
Propylene Oxide
North America Regarding downstream demand, there are variations from sector to sector. The shoe sole manufacturing
Europe sector has been hampered by the tightness of pure MDI supply after the force majeure declaration by
Huntsman which left the market short of material. This has reportedly led to some restriction in manufacturing
China
capability, which will also have had an effect on BDO volume during the second quarter.
MALEIC ANHYDRIDE
North America PBT demand remains subdued by the declining fortunes of the automotive sector in Europe. Automotive
and electric/electronic applications as well as other minor end use markets have been hard hit largely as
West Europe
a result of ongoing poor economic conditions in the Euro zone. This has led some manufacturers to scale
China down operating rates to reflect the current degree of demand. Nevertheless this sector has benefitted from
BDO & DERIVATIVES its increased usage in automotive applications, and this has to some extent mitigated the loss of demand
from the European automotive sector.
1,4 BUTANEDIOL
North America There has been at least some positive news on this front, however. European car sales rose for the first time
West Europe in 19 months in April, according to the European Automobile Manufacturers’ Association. ACEA reports it
Asia has counted on average two more working days compared to April 2012, which, it says, would account for
the increase. However, it can also be attributed to continuing strong demand in the UK (+14.8%) with the
PBT market also expanding in Germany (+3.8%) and Spain (+10.8%) in April. Although April’s registrations
North America have increased by 1.7% to 1.04 million compared to a year ago, new registrations in the first four months
West Europe of this year are 7.1% less than the same period last year when 4.3 million cars were registered.
Asia
Asia
China
Polyester Polyols Although the traditional peak season in the first half of the year in China did not happen as forecast, the
low season did not appear in advance as some had expected. BDO production was unstable in May
North America
as most manufacturers had stopped production or just restarted, and inventory was therefore limited.
West Europe However, attempts by some suppliers to raise prices were unsuccessful due to weak downstream
PTMEG demand.
North America
The market was stagnant in June, although there was still a steady stream of buying enquiries. Producer
West Europe quotations in the spot market remained firm, but numbers from some traders were heard down by
China Rmb100/ton in early June. Looking at the principle downstream sectors, Yizheng Chemical Fibre and
Lanshan Tunhe PBT facilities both resumed production gradually. June is traditionally a weak season
Spandex
for BDO in China, and this coupled with increased BDO capacity in Asia may result in downward
Asia price pressure later in the month. This has led to a very cautious attitude on the part of buyers. In
BIO BDO & RELATED PRODUCTS addition, there are questions marks as to whether the PBT sector will show any sign of picking up
through the second half of the year.
Bio-based BDO Market As for June prices, spot BDO was priced at Rmb13800-14100/ton, with trader prices heard at
Developments anything from Rmb14000-14200/ton. Drums and imports were respectively negotiated at around
Rmb14800-16000/ton and $1850-3000/ton. Imports into China were reported at a range of
Bio-Succinic Acid
$2420-3000/ton.
Access Tecnon
orbichem online

Front PAGE China: BDO Import Data of April 2013

PRICE MONITOR
ECONOMIC NEWS Country April 2013 Jan-Apr 2012 Jan-Apr 2013
Japan 64 315 762
INDUSTRY NEWS
Holland 1260 1324 2735
Feedstocks Malaysia 670 2418 2119
BUTANE South Korea 0 809 780
BUTADIENE Taiwan Province 3048 11340 6538
U.S. 0 1050 3024
North America
Saudi Arabia 0 5444 192
Europe Germany 5042 17658 16150
Asia Total 64 315 762
NATURAL GAS
PBT (POLYBUTYLENE TEREPHTHALATE)
Propylene Oxide
North America North America
Europe
North American PBT polymer and compound shipments continue at robust levels underpinned by strong
China
automotive sales and production. May’s US light vehicle sales climbed to 1.4 million units, 14.1% higher
MALEIC ANHYDRIDE than a year ago. This monthly rate again pushes annualised sales above the 15 million mark after falling
North America modestly below that level in April. Most US production estimates are similar to sales rates and producers
have announced plans to reduce or eliminate summer holidays to accomplish increased production
West Europe
levels. Retooling production facilities to introduce new models and increase production moderated May’s
China production level, particularly at General Motors.
BDO & DERIVATIVES
Strong automotive production coupled with increasing penetration of PBT compounds in each unit is resulting
1,4 BUTANEDIOL
in steady growth for PBT producers and compounders. Polymer production is ample but compounders
North America continue to increase staff to facilitate production increases. Delivery times for PBT compounds have not
West Europe changed despite 15-20% growth in the last year. Compounding materials are reportedly well supplied.
Asia
Polymer and compound prices have remained stable over the last month. Producers’ margins have
PBT improved in Q2 as PTA and BDO costs modestly declined in April and are expected to remain relatively
North America stable in May and June following contract price determinations. Prices for compounding materials are
West Europe generally stable as well.
Asia
West Europe
China
Polyester Polyols Demand for PBT and its compounds in the region continues to be stable at May levels. Players expect that
demand is unlikely to either significantly improve or fall in the short term, but possibly excluding the last
North America
couple of months of the year when inventories are normally reduced for financial/accounting purposes.
West Europe Automotive and electric/electronic end use markets as well as other minor end-use markets have been hard
PTMEG hit principally because of poor economic conditions in the Eurozone and producers/manufacturers have
had to scale down production levels. Therefore, demand has gradually fallen away in recent years for PBT
North America
and its compounds in the region too.
West Europe
China However, West European PBT and its compounds producers have been able to survive by producing high
specification material, used for a wide variety of products for diverse end uses. This has meant that buyers
Spandex
would have found it very difficult and complicated to suddenly change to another supply source for non-
Asia standard applications. Although producers have been able to maintain their position in the market, sales
BIO BDO & RELATED PRODUCTS volumes have still been below their expectations.
June West European PBT prices remain at the same levels of last month with virgin PBT contract prices at
Bio-based BDO Market about €2200-2400/ton ddp, unreinforced modified PBT resin at approximately €3050-3350/ton ddp,
Developments and reinforced modified PBT resin with glass fibres or minerals, as per product specification, at plus/minus
€30-50/ton. Flame retardant unreinforced or reinforced modified PBT resin grades are at about €3900-
Bio-Succinic Acid
4200/ton or higher depending on product specifications. It was reported there were additional enquiries
Access Tecnon for spot basis material from Asia, specifically China, throughout May but these type of transactions were
orbichem online more sporadic than sustained.

Front PAGE
WEST EUROPE
PRICE MONITOR 1,4-BUTANEDIOL vs PBT PRICE
5500
INDUSTRY NEWS 1,4-Butanediol
PBT
Feedstocks 5000
BUTANE 4500
BUTADIENE 4000
North America
3500
Europe
3000
Asia
2500
NATURAL GAS
2000
Propylene Oxide
North America 1500
Europe 1000
China 500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MALEIC ANHYDRIDE
West Europe
China Saudi International Petrochemical (Sipchem) has announced it expects to start operations at its new 63
BDO & DERIVATIVES ktpa PBT plant in Al Jubail, Saudi Arabia by end 2014 (see Projects News). The project investment cost
is estimated at Saudi Riyals 617 million (about $164.5 million). Sipchem confirmed last year that it had
1,4 BUTANEDIOL
started construction on the plant (see Issue Number 51, October 2012, page 22), but has only now
North America confirmed the exact timing and capacity of the facility.
West Europe
Asia Asia
PBT In South Korea, transaction prices for imported PBT were at $1950-1990/ton in the first week of June.
North America Weak downstream demand has kept compounder sales sluggish in the last month. South Korean domestic
West Europe car sales decreased in May by 1.2% year on year to 119,124 units. Car imports showed positive growth.
Downstream demand for electronic and electrical items was also reported to be slower in early June. One
Asia
compounder said PBT resin prices may remain stable for the rest of June as there is no particular sign of a
China big change in feedstock prices, and downstream demand also looks unlikely to change.
Polyester Polyols
In Taiwan, the BDO price was seen as having reached bottom in early June, and further reductions were
North America
seen as unlikely by PBT producers. BDO supply was normal. Demand for PBT resin from Turkey and India
West Europe have continued to hold steady in the last month. Demand from Europe is also reported to be stable, but
PTMEG may weaken as the European holiday season approaches.
North America
Demand from South Korea has been slow in the last month. One major PBT resin producer said that orders
West Europe for resin from South Korea were down 20% compared with the previous month. Demand from China was
China still weak in early June, and transaction levels were reported to be low. The market in China is reported to
have become more aggressive in terms of pricing as new producers have started up capacity.
Spandex
Asia Additional electricity costs with effect from June 2013 in Taiwan will mean higher production costs for PBT
BIO BDO & RELATED PRODUCTS resin. As a result, PBT resin producers are trying to lift offer prices, but are meeting strong resistance from
buyers, raising concern that margins may again be squeezed this summer.
Bio-based BDO Market Shinkong Synthetic Fibres will maintain high production rates in June after its one-week shutdown in May.
Developments Its PBT resin inventory is thought to be low.
Bio-Succinic Acid
Access Tecnon
orbichem online

Front PAGE China

PRICE MONITOR
ECONOMIC NEWS Demand for PBT in China has remained weak in the last month and operating rates have been kept at low
levels. Shipments of PBT resin to China were reported agreed in the first week of June in the range $1850-
INDUSTRY NEWS
1900/ton cfr. Transaction volumes were reported to be small. Downstream inventories of both polymer
Feedstocks and finished product are reported to be high. Bids from China were reported to be at low levels. Chinese
BUTANE domestic PBT transaction prices decreased to Rmb12800-13200/ton ddp in early June from Rmb13000-
BUTADIENE 13400/ton in May.
North America
PBT producers in China expect current resin price should be the bottom as there is little room for further price
Europe reductions. PBT resin producers in China are already struggling with squeezed margins, and operating
Asia rates are reported to be low.
NATURAL GAS
The biggest issue is the lack of any sign of a recovery in downstream demand. Some PBT producers think
Propylene Oxide it is possible there may not be any real recovery during the second half of 2013. At the same time, new
North America producers are understood to be marketing resin aggressively to secure sales in both domestic and export
Europe markets.
China
In 2013, an estimated 157 ktpa of new effective capacity will be started up, lifting the total effective PBT
MALEIC ANHYDRIDE base resin capacity for this year in China to around 417 ktpa. Henan Kaixiang’s new PBT resin production
North America is delayed to the end of June due to technical issue, and it is still not 100% certain whether it will smoothly
have commercial start up by the end of June. Yingkou Kanghui’s PBT resin operating rate is reported to
West Europe
have been low since it was started up. It is not yet clear whether all of the further planned new capacity
China due onstream later this year and in early 2014 will be started on time or delayed because of poor market
BDO & DERIVATIVES conditions. Lower overall operating rates for PBT resin are expected once the new plants are on stream
this year.
1,4 BUTANEDIOL
North America Feedstock prices have been more or less stable in the last month. The BDO price has been steady at around
West Europe Rmb13700-14000/ton since early May. BDO operating rates are low because of weak downstream
Asia demand and limited margins. New capacities due on stream this year are expected to put further pressure
on an already long supply-demand balance. At the same time, PBT producers suggest that there is no room
PBT for BDO prices to fall further.
North America
West Europe Domestic PTA prices have been stable since April at Rmb7750-7800/ton while import prices have increased
slightly in the last month to around $1055-1060/ton. PTA producers in China increased operating rates
Asia
to around 80% in early June, after running at low levels for some time, a move taken to indicate demand
China is recovering slowly.
Polyester Polyols
North America
POLYESTER POLYOLS
West Europe North America
PTMEG
The polyester polyol market has been quite steady from May to June, with demand remaining quite positive
North America
from the construction sector as well as the automotive sector. Construction demand was reportedly quite
West Europe slow to ramp up, but improvements have been seen this month.
China
Following price increases of an average 5c/lb which were taken on board in April and May, market prices
Spandex
are reported to be unchanged in June. There is some expectation that July may remain flat once more.
Asia Nevertheless, some suppliers pointed out the rise in adipic acid spot prices and with many producers taking
BIO BDO & RELATED PRODUCTS their adipic acid volumes on a part contract/part spot basis.
As far as feedstock markets are concerned, US phthalic anhydride prices are up by 2 c/lb in June in line
Bio-based BDO Market with the same price increase of the orthoxylene contract price in May. Phthalic prices in the US lag one
Developments month behind orthoxylene contract prices.
Bio-Succinic Acid
June is expected to see a tightening in DEG availability, with a potential demand increase meeting a lower
Access Tecnon supply scenario and this could lead to firmer prices. Both Indorama and MEGlobal announced price rises
orbichem online for this May of just 1.0 c/lb, which brought levels up to 62.0-63.0 c/lb ($1367-1389/ton) FOB US Gulf.

Front PAGE West Europe

PRICE MONITOR
ECONOMIC NEWS Polyester polyol producers in Europe continue to face a sluggish market in terms of demand for both
aliphatic and aromatic grades.
INDUSTRY NEWS
Feedstocks The weaker of the two sectors is still the aliphatic sector which has been most impacted by the downtrend in
BUTANE the European automotive sector. In addition, though, other demand segments such as CASE have been flat
BUTADIENE in recent months and players report that the shoe sole market has not been as strong as it was the previous
year. The aliphatic sector has struggled through the first half of the year with slow demand and volumes
North America
have consistently fallen below 2012 volumes.
Europe
Asia The aromatic polyester polyol sector has largely remained the more robust of the two grades, but this sector
has also suffered from the late start to the construction season this year caused by the long winter, as well
NATURAL GAS
as the difficult economic conditions affecting many countries in the region.
Propylene Oxide
North America Pricing for both aromatic and aliphatic polyester polyols remains largely unchanged from May to June, with
Europe pockets of small fluctuations noted, but an overall rollover reported in most cases.
China
As far as quarterly contracts for aromatic polyester polyols for the third quarter, there is an expectation
MALEIC ANHYDRIDE that suppliers will look to maintain a stable price, although buyers see some potential for a downward
North America correction.
West Europe
PTMEG
China
BDO & DERIVATIVES North America
1,4 BUTANEDIOL
The North American PTMEG market has been quite steady in June, with pricing heard at around $3700-
North America 3800/ton for 1000-2000 Molecular Weight, although higher prices have also been reported for smaller
West Europe volumes. These prices apply for non-spandex applications which are typically priced at a higher level
Asia that large volume orders into the spandex sector. Availability in the North American PTMEG market is
ample.
PBT
North America PTMEG capacity has historically been most significant in North America and North East Asia, but with
West Europe substantial investment in PTMEG capacity in China, the focus has been gradually shifting to China in recent
years. By 2015, about 65% of global PTMEG capacity will be based in China. The majority of this extra
Asia
capacity is understood to be destined for the growing Chinese domestic spandex textile market.
China
Polyester Polyols With the loss of some spandex capacity in recent years in the US, there is now only one spandex producer,
Invista, operating in North America. As far as non - spandex applications are concerned, the main
North America
downstream applications are polyurethane elastomers, as well as thermoplastic polyurethanes.
West Europe
PTMEG PTMEG consumption in the US is estimated to increase by approximately 3% over the next five years.
North America
West Europe
West Europe
China In Europe, PTMEG pricing is steady in June, and is expected to remain at a consistent level into next month.
However there is likely to be an increasing amount of pressure on the global market as the year progresses.
Spandex
A substantial amount of new capacity is slated to come onstream in the second half of the year in Asia, and
Asia its impact is widely expected to extend to other regions. Sources expect that in order to stem Asian imports
BIO BDO & RELATED PRODUCTS into Europe, local suppliers may be inclined to lower offers. Pricing this month is reported at around €2800-
3400/ton DDP for 1000-2000 Molecular Weight, with variation depending on the size of customer. Small
volume spot offers for imported material from Asia have been heard at around €3500/ton.
Developments Approximately 44% of PTMEG consumption in West Europe goes into spandex production. The remainder
goes into sectors such as thermoplastic polyurethane and elastomers.
Bio-Succinic Acid
Access Tecnon
orbichem online

Front PAGE
CHINA
PRICE MONITOR 1,4-BUTANEDIOL vs PTMEG PRICE
5000
INDUSTRY NEWS 1,4-Butanediol
East China
Feedstocks 4500
Domestic price
BUTANE 4000
PTMEG
East China
BUTADIENE Domestic price
3500
North America
Europe 3000
Asia 2500
NATURAL GAS 2000

Propylene Oxide
1500
North America
Europe 1000
China 500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MALEIC ANHYDRIDE
West Europe
China China
BDO & DERIVATIVES
PTMEG in the spandex sector was stable in June, supported by stable spandex operating rates. In
1,4 BUTANEDIOL
addition, Sichuan Tianhua’s new PTMEG facility was still operating at a low rate and had little effect on
North America market supply. Facilities in Ningbo Mitsubishi and Hangzhou Samraong operated stably. As the spandex
West Europe market entered its traditional weak season in May, although this has had little effect on the raw material
Asia market for now, players are still taking a cautious stance as to the short term future. The vast majority of
PTMEG consumption in China goes into the spandex sector (over 90%), so this is an extremely influential
PBT end use market. Prices were heard at Rmb26000-28000/ton, with Shanxi Sanwei and Hangzhou
North America Samraong at the lower end (Rmb26200-26500/ton) whilst high end prices from Mitsubishi (Ningbo)
West Europe and BASF were reported at Rmb27200-28000/ton. Imported material was priced at Rmb26800/ton.
Asia
The non-spandex PTMEG market was sluggish due to the low season and lack of demand. Suppliers
China were cautious in their shipments of material and some traders lowered prices to promote sales. Upstream
Polyester Polyols raw materials and orders from the PU market were stable. Overall operating rates were at a low level,
but the market was supported by high polyether polyol rates to some extent. Domestic 2000 Molecular
North America
Weight was priced at Rmb27200-28500/ton in east China, whilst Rmb27300-28600/ton in the south.
West Europe Low end prices are for bulk material and the high end represents drummed material from traders.
PTMEG
As for imports, Dalian goods are reported at Rmb29000/ton and quotations from Korea PTG are heard
North America
at Rmb30800/ton whilst prices settled at Rmb30000-30500/ton. 2000 Molecular Weight from BASF
West Europe and Mitsubishi were heard at Rmb30800-31500/ton. In the non-spandex area, prices for drummed
China 1000 Molecular Weight were heard at Rmb30200-30800/ton. Material from Korea PTG and Dalian
was offered at Rmb29600-30800/ton. Quotations from BASF were also heard at Rmb33200/ton.
Spandex
Asia China: PTMEG Import Data of April 2013
Country Apr 2013 Jan-Apr 2013 Jan-Apr 2012
Germany 16 2287 2854
Bio-based BDO Market Korea 626 2701 2642
Developments Japan 112 751 879
USA 160 256 0
Bio-Succinic Acid
Taiwan 10061 34207 34362
Access Tecnon Others 0 0 0
orbichem online Total 10975 40202 40737

Front PAGE SPANDEX

PRICE MONITOR
ECONOMIC NEWS Asia
INDUSTRY NEWS
Chinese spandex manufacturers had gradually lifted their operating rates from 80% to 90% earlier in
Feedstocks the second quarter Spandex plants using a melting production process had operated at lower rates,
BUTANE however, as a result of high production costs and comparatively low selling prices.
BUTADIENE
Spandex manufacturing plants were operating stably at high rates through June, supported by the current
North America
stability of downstream demand. However, there were signs that sales volume was facing a downward
Europe trend, which is to be expected at this time of year. Inventories were largely retained at a low level, in the
Asia early part of the month, but in the second half, some weaving mills reduced demand for spandex due to
a decline in orders from end markets. June is a slow season for the spandex industry, and operating rates
NATURAL GAS
were expected to be slashed as a result. 20D was mainly heard at Rmb64,000-65,000/ton. 30D and
Propylene Oxide 40D were respectively priced at Rmb54,000-55,000/ton and Rmb48,000/ton.
North America
Europe Manufacture Quotations of Domestic Spandex in June 2013
(Unit Rmb/Ton)
China
MALEIC ANHYDRIDE East China
North America Manufacturers Specifications Market Prices
Jiangsu Shuangliang 30D 56000
West Europe
Zhuji Huahai 20D 63000
China Zhuhai Dongguo 20D 66000
BDO & DERIVATIVES Shandong Yantai 40D(315) 47000
Jiangsu Lianyungan 20D 57000
1,4 BUTANEDIOL
Kaipute 40D 46000
North America Xinxiang 40D(315) 46000
West Europe Ao’shen 20D 60000
Asia Shaoxing Longshan 40D 46000
PBT South China

North America Manufacturers Specifications Market Prices
West Europe Shandong Yantai 40D 47000
Zhejiang Shu’erzi 30D 57000
Asia
Banglian 40D 44000
China Shaoxing Longshan 40D 47000
Polyester Polyols Zhuji Huahai 40D 45000
Jiangsu Shuangliang 40D 45000
North America
Toplon 40D(AA) 50000
West Europe
PTMEG CHINESE IMPORTS
North America SPANDEX
April 2013 Jan-Apr 13 Jan-Apr 12
West Europe
China China 242 - 936 298
Singapore 263 - 747 631
Spandex Japan 185 - 746 560
Asia South Korea 131 - 691 428
United Kingdom 214 - 679 527
BIO BDO & RELATED PRODUCTS Thailand 170 - 489 549
Others 56 - 108 306
Vietnam 27 - 88 1,634
Bio-based BDO Market Total 1,288 4,484 4,933
Developments
Bio-Succinic Acid
Access Tecnon
orbichem online

Front PAGE
CHINESE EXPORTS
PRICE MONITOR SPANDEX
ECONOMIC NEWS April 2013 Jan-Apr 13 Jan-Apr 12
INDUSTRY NEWS Tons $/Ton Tons Tons
Others 740 - 3,522 2,666
Feedstocks
South Korea 572 - 2,845 1,818
BUTANE Hong Kong 504 - 1,936 772
Turkey 690 - 1,629 853
BUTADIENE Vietnam 503 - 1,514 856
North America Belgium 337 - 1,355 2,044
Taiwan 291 - 1,281 620
Europe Indonesia 329 - 1,270 574
Asia India 157 - 615 738
Italy 144 - 448 405
NATURAL GAS Brazil 144 - 432 300
Colombia 104 - 402 250
Propylene Oxide
Total 4,515 17,249 11,896
North America $/ton figures are calculated from customs data and may not reflect market prices
Europe
China
MALEIC ANHYDRIDE BIO BDO & RELATED PRODUCTS
North America
West Europe
China At the end of 2012, Genomatica and DuPont Tate & Lyle for the first time successfully produced 1,4-
BDO & DERIVATIVES butanediol (BDO), from a one-step, bio-based process on a commercial scale.
1,4 BUTANEDIOL
During this 5-week production campaign over 2,000 tons of BDO was produced, which is equivalent to a
North America run-rate of over 23,000 tons/year. The collaboration utilised DuPont Tate & Lyle’s commercial-scale batch
West Europe fermentation operation to feed continuous downstream processing at the plant in Tennessee. DuPont Tate
Asia & Lyle has been running its plant in Tennessee since 2006, producing 1,3-propanediol (PDO) made from
corn sugar. Products with different grades have been marketed (Zemea™ propanediol and Susterra™
PBT propanediol) for use in different applications.
North America
West Europe Genomatica claims that this is the first time that BDO has been produced from a biological process at
commercial scale.
Asia
China BDO has been produced from a one-step, microbial fermentation process directly from corn dextrose
Polyester Polyols feedstock. Genomatica’s technology has been published in Nature Chemical Biology in 2011, where it
describes in detail the design and development of E. Coli strain using a systems-based metabolic engineering
North America
approach to produce BDO from glucose, xylose, sucrose and biomass-derived mixed sugar streams.
West Europe
PTMEG Although this was only a 5-week demonstration for commercial production, Genomatica has already a joint
venture project in place with Italy-based Novamont to convert an old amino acid plant in Adria, Italy, to
North America
40m lb/year (i.e. 20,000 tons/year) of bio-BDO production, which is scheduled for completion towards
West Europe the end of 2013.
China
Genomatica owns 20% of the BDO venture while the other 80% will be owned by Novamont, which is
Spandex
financing the plant conversion and will operate it. All of the bio-BDO output from the plant will be purchased
Asia and consumed by Novamont for its own internal use in biopolymer products that incorporate BDO as a key
BIO BDO & RELATED PRODUCTS monomer. Genomatica may purchase a portion at its discretion for further market development. It is claimed
that Genomatica’s model is based on licensing its process technology to other parties to build plants, and it
can also take an equity stake in projects in exchange for technology.
Developments It is also worth mentioning that Genomatica plans to couple its Bio-BDO process with M&G’s (Mossi &
Ghisolfi) Chemtex PROESA™ technology, which converts cellulosic biomass to fermentable sugars. This will
Bio-Succinic Acid
hopefully mean a feedstock cost advantage.
Access Tecnon
orbichem online

Front PAGE Other companies which have also planned bio-BDO production include Reverdia (JV between DSM and
PRICE MONITOR Roquette), BioAmber/Mitsui, BASF/Purac, and Myriant. Unlike Genomatica that uses a one-step direct
ECONOMIC NEWS fermentation process, these other technologies are mainly based on a two-step process consisting of the initial
production of succinic acid from biofeedstocks and subsequent conversion to BDO through conventional
INDUSTRY NEWS
hydrogenation. BioAmber and Myriant for instance, have suggested they will produce bio-based BDO from
Feedstocks bio-succinic acid using DuPont’s hydrogenation catalyst technology and the Davy butanediol technology
BUTANE respectively.
BUTADIENE
The bio-BDO route for Metabolix is thorugh polyhydroxyalkanoate (PHA), or more specifically, poly-4-
North America
hydroxybutyrate (P4HB), a biopolymer that can be produced through fermentation from renewable
Europe feedstocks. Metabolix claims that they have developed a proprietary route for producing renewable GBL
Asia and has demonstrated that GBL can also be converted cost-effectively to BDO via a standard catalytic
process. In 2006 Metabolix partnered with agribusiness giant Archer Daniels Midland (ADM) to create
NATURAL GAS
JV Telles, producing bioplastics made with PHA made from agricultural products like corn sugar and corn
Propylene Oxide oil, the products were marketed as Mirel and Mvera. However, this JV was terminated in Jan 2012, and
North America Metabolix is now working with partner Spanish-based pharmaceutical ingredients company Antibioticos
Europe to produce PHA bioplastics.
China
A diagram illustrating bio-based BDO routes by various developers is shown below
MALEIC ANHYDRIDE
North America
West Europe
BASF BioAmber Reverdia
Genomatica Myriant Metabolix
China Purac Mitsui (DSM/Roquette)
BDO & DERIVATIVES

1,4 BUTANEDIOL Sugar or other
Sugar Biomass
agricultural
North America Sugar products?
West Europe
Fermentation Fermentation
Asia Fermentation
PBT Succinic
Poly-4-
hydroxybutyrate
North America Acid (P4HB)
West Europe Conventional

FAST
recovery
hydrogenation
Asia process
China Catalytic process

BDO GBL
Polyester Polyols
North America
West Europe
PTMEG
North America
Due to the fact that bio-based BDO commercialisation is still at its early stage, information on product pricing
West Europe is scarce. However, producers seem to be generally optimistic on bio-based chemicals and confident
China that not only they will be better for the environment but also they will cost less than their conventional
counterparts.
Spandex
Asia BioAmber claims that ‘the cost of its bio-succinic acid is lower than petro-derived succinic acid, with a
BIO BDO & RELATED PRODUCTS higher purity profile’.
Based on the initial lifecycle analysis, Genomatica has claimed that its bio-BDO uses about 60% less
Bio-based BDO Market energy than acetylene-based BDO and emits 70% less CO2. As a result, they expect that production
Developments expenses for bio-BDO to be 15-30% less than petro-based BDO, and that bio-BDO to be competitive at oil
prices of even as low as $45/bbl or at natural gas prices of even as low as $3.50/mmBtu.
Bio-Succinic Acid
Access Tecnon Myriant has also said its bio-BDO will be cost competitive if oil is over $45/bbl.
orbichem online

Front PAGE Bio-based BDO Market Developments

PRICE MONITOR
INDUSTRY NEWS
BASF announced last month plans to produce 1,4-butanediol based on renewable feedstock using
Feedstocks Genomatica’s patented process which uses sugars as a renewable feedstock. The agreement allows BASF
BUTANE to build a world-scale plant using Genomatica’s process technology. BASF will have renewable BDO
BUTADIENE available in the second half of this year for sampling and product trials.
North America
As far as bio-based economics are concerned, Genomatica claims that its bio-BDO is competitive with
Europe current petroleum-based BDO prices of around 141c/lb.
Asia
Genomatica and DuPont Tate & Lyle Bio Products started commercial production of 1,4 BDO in late 2012
NATURAL GAS
at DT&L’s Loudon, Tennessee, facility. In a span of five weeks, the companies produced over 2,000 metric
Propylene Oxide tons of BDO by direct fermentation using dextrose sugar supplied by DT&L. This is an equivalent run-rate
North America of over 23 ktpa.
Europe
The US dextrose price in Midwest markets was stable at around 35c/lb, dry weight, between December
China
2012 and May 2013. This is the Wholesale list price for dextrose sugar according to the US Department
MALEIC ANHYDRIDE of Agriculture (USDA) Economic Research Service (ERS). Sugar is a significant component of variable cost
North America in a bio-based BDO process.
West Europe
Genomatica is the first company to commercially produce bio-based 1,4 BDO. The company reports that
China the products from the Loudon facility have been delivered for customer testing.
BDO & DERIVATIVES
BioAmber, a US-based bio-based succinic acid producer, plans to start up a bio-based 1,4 BDO toll
1,4 BUTANEDIOL
manufacturing plant in the US in late 2014 for consumer sampling, which would have a capacity to
North America produce 2-4 ktpa. The company is identifying several companies that have the infrastructure, know-how and
West Europe purification equipment needed to convert their bio-succinic acid to bio-based BDO on a toll manufacturing
Asia basis.
PBT BioAmber plans to design and install a proprietary hydrogenation reactor at the selected toll manufacturer, to
North America provide a catalyst produced by its partner Evonik, and to supply the toll manufacturer with bio-succinic acid,
West Europe produced initially at its Lestrem, France, demonstration facility, and subsequently in Sarnia, Ontario, where
a 30 ktpa bio-succinic acid facility is being built and which is expected to start operations in 2014.
Asia
China West Europe
Polyester Polyols
German-based specialty chemical firm, Lanxess and in partnership with US renewable chemicals company
North America
Genomatica, announced on 25 June that Lanxess has produced biobased PBT at its 80 ktpa co-owned
West Europe petro-based PBT production facility in Hamm-Uentrop, Germany, using 20 tons of Genomatica’s BDO as a
PTMEG raw materials. The Hamm-Uentrop PBT facility is a 50-50 joint venture between Lanxess and DuPont.
North America
Genomatica and Lanxess said Genomatica’s bio-BDO fully complied with the Lanxess specifications for
West Europe petro-based BDO allowing a direct feed of 100% bio-based BDO into the facility’s continuous production
China process. The properties and the quality of the biobased PBT produced are reportedly fully equivalent to
conventional petro-based PBT with regards to all tested parameters.
Spandex
Asia Commercialized PBT is currently produced using petro-based BDO and terephthalic acid (PTA). Lanxess
BIO BDO & RELATED PRODUCTS currently manufactures petro-based PBT and its blends under the trademark Pocan®, which is used in
automotive, electronics/electrical products, lighting, household appliances, sports, etc.
Bio-based BDO Market Lanxess did not disclose further future plans on when it will start producing bio-PBT or if it will start sourcing
Developments bio-BDO from Genomatica for future biobased PBT production.
Bio-Succinic Acid
German chemical company, BASF, announced in May that it has licensed the bio-based 1,4 BDO processing
Access Tecnon technology of Genomatica, and plans to produce bio-BDO for testing in the second half of 2013.
orbichem online

Front PAGE BASF did not disclose the location or the size of its upcoming bio-BDO production. The company is a major
PRICE MONITOR manufacturer of petroleum-based BDO with facilities in Ludwigshafen, Germany; Geismar, Louisiana;
ECONOMIC NEWS Chiba, Japan: Kuantan, Malaysia; and Caojing, China. BASF’s BDO production worldwide is 535 ktpa
using conventional feedstocks.
INDUSTRY NEWS
Feedstocks It appears that BASF may construct a bio-BDO production facility with a capacity of 50 ktpa but the project
BUTANE is subject to market acceptance and demand for bio-BDO as the size of the plant would require a pre-
BUTADIENE existing market.
North America
BASF intends to use bio-BDO to tap markets in which the company can create additional value for their
Europe customers, such as in the textile, automotive and plastics markets.
Asia
Genomatica’s joint venture partner, bioplastic producer Novamont, is currently constructing a 20 ktpa bio-
NATURAL GAS
BDO facility in a recently purchased amino acid facility in Adria, Italy. Novamont expects to start operations
Propylene Oxide by the end of 2013.
North America
Europe Novamont will finance the plant conversion and operate the facility. The company intends to consume the
bio-BDO output for its own internal use as key monomer for its biopolymer products. Genomatica may
China
purchase a portion of the production at its discretion to support further market development.
MALEIC ANHYDRIDE
North America Asia
West Europe
Japanese chemical firm, Toray, announced in April the successful production of molded partially bio-based
China polybutylene terephthalate (PBT) engineering plastic components using Genomatica’s bio-BDO.
BDO & DERIVATIVES
Toray has been working on bio-based PBT with Genomatica for more than two years and produced its
1,4 BUTANEDIOL
first PBT pellets made with bio-BDO samples in February 2011. Toray said the partially bio-based PBT has
North America physical properties and formability equivalent to PBT made with petroleum-derived BDO.
West Europe
Asia Toray plans to produce bio-based PBT at commercial scale using Genomatica’s bio-BDO process. Toray
said it will share samples of bio-based PBT with its customers this year to help develop market demand.
PBT Toray expects to bring products to market as soon as supplies of bio-BDO are readily available from one
North America of Genomatica’s bio-BDO licensees.
West Europe
PBT is the second largest use for BDO accounting for around 25-30% of all BDO consumed worldwide
Asia
or an equivalent of 700 ktpa as PBT compound. The polymer is used in wide-ranging applications from
China automobile parts such as switches and ignition coils to electrical parts like connectors and plugs.
Polyester Polyols
Asian PBT demand is showing some signs of improvement but this is patchy and varies by geography and
North America
downstream sector.
West Europe
PTMEG New Bio-BDO Capacity 2012-2015
North America
Company Location Capacity (ktpa) Start-Up
West Europe Genomatica/
China Dupont Tate & Lyle California, USA 24 (?) Q4 2012*
Novamont Adria, Italy 16 2013*
Spandex
PTT/MCC Thailand 50 2014#
Asia BioAmber/Mitsui Sarnia, Canada 23 2015+
BIO BDO & RELATED PRODUCTS BioAmber/Mitsui Brazil (or North America) 50 2015+
Myriant Louisiana, USA ? ?
Bio-based BDO Market +from succinic acid
Developments *Direct fermentation
#with PBS 20ktpa
Bio-Succinic Acid
Access Tecnon
orbichem online

Front PAGE Bio-Succinic Acid

PRICE MONITOR
ECONOMIC NEWS New Bio-Succinic Acid Capacity 2012-2015
INDUSTRY NEWS
Company Location Capacity (ktpa) Start-Up Date
Feedstocks Reverdia Cassano Spinolo, Italy 10 Dec 2012
BUTANE Myriant Louisiana, USA 14 Apr 2013
BUTADIENE BioAmber/Mitsui Sarnia, Ontario, Canada 17 2013
BioAmber/Mitsui Sarnia, Ontario, Canada 35e 2015
North America
BASF Purac Barcelona, Spain 10 early 2014
Europe BioAmber/Mitsui Thailand 65 2014
Asia BioAmber/Mitsui Brazil (or North America) 65 2015
BASF Purac Barcelona, Spain 50e ?
NATURAL GAS
e = Expansion of existing capacity
Propylene Oxide
North America
Europe
China
MALEIC ANHYDRIDE
North America
West Europe
China
BDO & DERIVATIVES
1,4 BUTANEDIOL
North America
West Europe
Asia
PBT
North America
West Europe
Asia
China North America
Polyester Polyols
In North America, BioAmber is building a 30 ktpa bio-succinic acid plant in Sarnia, Ontario, Canada, which is
North America
expected to start operating by 2014. BioAmber already operates the world’s first succinic acid plant in Pomacle,
West Europe France owned by ARD, which is under exclusive use to BioAmber through a toll manufacturing agreement. As of
PTMEG the end of March, the plant has produced over 836 tons of bio-succinic acid since 2010 and the high purity, cost
competitive bio-succinic acid is available for sale. BioAmber will move production to a global scale North American
North America
facility in 2014. The Sarnia, Ontario based plant will offer economies of scale and benefit from lower feedstock and
West Europe utility costs than France, leading to a significant reduction in the price of BioAmber’s bio-succinic acid.
China
Myriant started operation of its 14ktpa Louisiana, USA, plant in April/May 2013 and reported successful
Spandex
production of on-spec bio-succinic acid in June. Myriant will focus on four primary applications: biobased
Asia polymers, coatings, urethanes and plasticizers. Piedmont Chemical has said it will be using a combination
BIO BDO & RELATED PRODUCTS of bio-succinic acid from Myriant and propanediol from DuPont Tate and Lyle Bio Products to produce
renewable, sustainable polyester polyols. This renewable, 100% bio-based polyester polyol will be
available by the end of the year for urethane producers seeking green polyols for their urethane products.
Developments West Europe
Bio-Succinic Acid
BioAmber has been supplying bio-based succinic acid in France through a tolling agreement with ARD
Access Tecnon since 2010 but large-scale commercial production only began in December 2012 with the start of the
orbichem online Italian based Reverdia plant. Contrary to some observers’ expectations, the market for succinic acid (petro

and bio-based) overall in Europe does not seem long. The new bio-based production is targeted toward
downstream applications of polybutylene succinate (PBS), polyester polyols for polyurethanes, coating and
composite resins, phthalate-free plasticizers, and 1,4 butanediol.
Prices for petroleum-based succinic acid are reported at around $2500/ton, but this is only a provisional
assessment and actual numbers may vary widely.
Succinity GmbH, the joint venture between BASF and Purac announced in October 2012 has been
established in June 2013. The company’s 10 ktpa bio-succinic acid plant in Spain is expected to start by
the beginning of 2014. This plant is an upgrade of an existing fermentation facility at Purac’s Montmélo site.
An expansion to 50 ktpa is expected some time after 2015 but details on timing are not yet available.
Asia
BioAmber and Mitsui with joint venture projects already underway in North America, are now looking at
Thailand as a site for future projects. A feasibility study is underway with PTT MCC (a joint venture between
PTT and Mitsubishi Chemical) with a view to starting up in 2014 and a possible capacity of 65 ktpa of
succinic acid and 50 ktpa of BDO. BioAmber and Mitsui are also looking at North America or Brazil for
the location of a third plant of similar size.
Information contained in this report is obtained from sources believed to be reliable, however no responsibility nor liability will be accepted by Tecnon
OrbiChem for commercial decisions claimed to have been based on the content of the report.
Reproduction of any part of this work by any process whatsoever without written permission of Tecnon OrbiChem is strictly forbidden.
SUPPLEMENTARY CHARTS, TABLES 补充图表，表格及价格数据

& PRICE DATA

In addition to the text, tables and charts contained within this report, 订阅英国泰可荣全球化学有限公司出版的《化工商业聚焦》月
Tecnon OrbiChem Chemical Business Focus subscribers have free, 报的客户，除了能获得月报中包含的文字、表格和图表等信息
on-line access to supplementary tables, charts and price data. 外，还能在公司网站上免费获得补充图表、表格及价格数据。
• To access Supplementary Charts click here • 进入补充图表请点击这里
• To access Supplementary Tables click here • 进入补充表格请点击这里
For historical Price Data go to Tecnon OrbiChem Online 历史价格数据请上英国泰可荣全球化学有限公司网站查询
To access Tecnon OrbiChem Online, you will need to enter your 访问英国泰可荣全球化学公司网站时，您将需要输入您的用户
User Name (your e-mail address, unless you have changed it) and 名（注册时使用的电子邮箱地址）和密码（如果您忘记了密
your Password (if you have forgotten it, enter anything and you will 码，请输入任意字符，您将通过电子邮件得到一个新的密码）
be e-mailed a new one). On the Tecnon OrbiChem Online home 。在英国泰可荣全球化学有限公司网站主页上选择价格数据，
page select Price Data and follow the instructions. 并按照提示操作。
• To access Tecnon OrbiChem Online click here • 进入英国泰可荣全球化学有限公司网站请点击这里
Tecnon OrbiChem Ltd

12 Calico House,
Plantation Wharf, York Place
London SW11 3TN UK
Senior Consultant Rachel Uctas
BDO, PO, PTMEG, GBL, THF, Spandex Rachel Uctas Tel: +44 20 7924 3955
Maleic Anhydride Philippa Davies, Zhao Na Fax: +44 20 7978 5307
PBT Darrel Collier, Hamid Villareal Mohsenian, Email: rachel.uctas@orbichem.com
Kim Hyun-Min Web: www.orbichem.com

Chemical Business Focus: A Monthly Roundup and Analysis of The Key Factors Shaping World Chemical Markets

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chemical Business Focus: A Monthly Roundup and Analysis of The Key Factors Shaping World Chemical Markets

Uploaded by

Copyright:

Available Formats

including Maleic Anhydride, Propylene Oxide, POLYESTER POLYOLS, PBT and PTMEG

1,4-Butanediol & Derivatives

CHEMICAL BUSINESS FOCUS

Propylene Oxide 97 - 100 92 - 95 84 - 88 83 - 87 DDP 1830 - 1918

WEST EUROPE PRICES

CHINA DOMESTIC PRICES: East China

CHINA IMPORT PRICES

* = Small consumer price

Current one US dollar equivalent (28-Jun-2013)

 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

⦃⇻ϭ⛋ 97 - 100 92 - 95 84 - 88 83 - 87 ᅠ⿢ৢѸ䋻 1830 - 1918

 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE SUBSCRIBER NOTE: INCOTERM CHANGES IN PRICE MONITOR

 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE PROPYLENE OXIDE

Bio Routes to 1,4-Butanediol Switzerland 352 1,764 1,262 1,003

 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

China Jan-Dec 68.4 16.1 7.0

Jan-Mar 6.6 2.4 1.5 1,957 1,899

 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

1,4 BUTANEDIOL Jan-Dec 9.0 35.7 43.6

China (1,000 Metric Tons)

Jan-Mar 5.5 8.0 6.3 2,159 1,910

 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE China

10 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE MALEIC ANHYDRIDE

Europe South Korea 330 1,877 819 388

Bio Routes to 1,4-Butanediol United States 823 1,461 1,581 4,046

Polyester Polyols CHINESE EXPORTS

West Europe (1,000 Metric Tons)

North America Jan 7.7 2.1 2.3 1,472 1,879

12 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

West Europe Jan-Mar 8.6 9.5 8.6 1,441 1,831

BIO BDO & RELATED PRODUCTS

13 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

14 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE West Europe

15 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE China: BDO Import Data of April 2013

16 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

17 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE China

18 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE West Europe

19 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

NATURAL GAS 2000

20 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE SPANDEX

PBT South China

21 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

22 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

BDO & DERIVATIVES

West Europe Conventional

China Catalytic process

23 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE Bio-based BDO Market Developments

24 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

25 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Front PAGE Bio-Succinic Acid

26 Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013

Tecnon OrbiChem ISSUE NUMBER 000 / 4TH JULY 2013