Chemicals Showed Different Price Change

Caustic soda

In June 2007, due to the demand decrease in downstream sectors
and the sales increase in domestic market, the price of caustic
soda dropped considerably. In North China, the trading price of
ionic membrane caustic soda was RMB540-580/t by the end of June
2007, compared to RMB560-630/t at the end of May 2007.
   In July 2007, due to the capacity expansion, the output of
caustic soda is expected to increase steadily, and the price of
caustic soda will decrease slightly.

Liquid chlorine

In June 2007, China's price of liquid chlorine showed different
change according to the regions. In East China and North China,
the demand for liquid chlorine in downstream sectors increased,
the price of liquid chlorine therefore increased to RMB1 200-1
550/t and RMB1 400-1 600 respectively by the end of June 2007.
In Central China, South China and Southwest China, the supply
and demand was basically balanced, and the prices in these
regions remained stable. In Northeast China, the price of liquid
chlorine decreased slightly due to consumption shrink of liquid
chlorine.
    In July 2007, the supply of liquid chlorine is expected to
increase and the demand for liquid chlorine in downstream
sectors such as pesticide and papermaking will shrink. The price
of liquid chlorine therefore will drop slowly.

Sulfur

In June 2007, due to the demand growth for sulfur, the supply
of sulfur was tense, and China's price of sulfur continued to
increase. Some local sulfur producers such as Maoming
Petrochemical Company Ltd. and Qilu Petrochemical Company Ltd.
lifted their ex-work prices in succession, and their ex-work
prices reached RMB1 700/t, an increase of RMB200/t over a month
before.
   By the end of June 2007, sulfur was traded at RMB1 450-1 700/t
in South China, compared to RMB1 350-1 490/t in a month before,
and in North China, the bulk trading prices of sulfur increased
to RMB1 550-1 650/t.
   In July 2007, China's output of sulfur will be stable, however,
due to tense supply of imported products, the price of sulfur
will continue to increase.
   
Maleic anhydride

In June 2007, due to the low operating rate of downstream
unsaturated polyester resins (UPR) and the shrink of export, the
price of maleic anhydride dropped around RMB600/t from a month
before. Some local producers decreased their ex-work prices
considerably.
  As of June 20th, 2007 the bulk trading prices of maleic
anhydride were RMB8 400-8 600/t and RMB9 200-9 300/t
respectively in Shanxi province and East China.
  Due to the profit being drastically narrowed, it is impossible
for maleic anhydride producers to decrease their ex-work prices
greatly. However, due to the shrink demand for maleic anhydride,
the price of maleic anhydride will still fluctuate or drop
slightly.

Bisphenol A

In June 2007, due to the shrink market of downstream sectors,
the demand for bisphenol A (BPA) decreased, and the price of BPA
dropped considerably.
   As of June 19th, 2007 BPA was trading at RMB18 400-18 600/t
in East China, drop of RMB300-400/t from a month before, and in
North China, the bulk trading prices of BPA drop around RMB300/t
to RMB18 600-18 650/t.
   Due to the slow growth of demand for BPA, even if the price
of BPA rebounds, it will be difficult to reach RMB19 000/t. It
is expected that the price of BPA will fluctuate slightly.

Phthalic anhydride

In June 2007, due to the price drop of DOP (dioctylphthalate)
and the demand decrease for phthalic anhydride in downstream
sectors, the price of phthalic anhydride dropped considerably.
  As of June 19th, 2007 the bulk offer prices of phthalic
anhydride was RMB10 600-10 700/t in East China, a drop of
RMB400/t compared with those in early June 2007, and in Shandong
province, the bulk trading prices of phthalic anhydride
decreased to RMB10 600/t.
  Due to slack demand for plasticizers, the demand for phthalic
anhydride in downstream sectors will unlikely be brisk in
short-term, and the price of phthalic anhydride will probably
continue to decrease.