Resins Showed Different Price Change

Polyethylene

In early June 2007, due to the unduly price rise in earlier months,
the demand in downstream sectors did not increase synchronously,
and the offer price of LLDPE (linear low density polyethylene)
dropped slightly. The price of HDPE (high density polyethylene)
remained up trend because of tense supply.
   At the end of June 2007, with the overhaul of LDPE units in
Sinopec Shanghai Petrochemical Company and CNPC Daqing
Petrochemical approaching, the price of LDPE (low density
polyethylene) film materials increased considerably. LLDPE
price fluctuated with narrow range, the market of HDPE film
materials still hovered with few trading actions, whereas the
price of HDPE filament materials increased steadily with active
trading actions.
   As of June 29th, 2007 in East China, the bulk trading price
of LDPE was RMB12 300-13 700/t, basically the same as a month
before, and HDPE filament materials and HDPE film materials were
traded at RMB12 200-12 500/t and RMB12 400-13 000/t respectively,
a rise of RMB50/t and RMB400/t.
   In July 2007, the supply of PE (polyethylene) will drop
considerably, however, due to the demand decrease for PE in
downstream sectors, the prices of PE will fluctuate slightly.

Polypropylene

In early and mid- June 2007, due to the unduly price rise in
earlier months and the low operating rate of downstream plants,
the price growth of polypropylene (PP) slowed down. At the end
of June, domestic market price hovered with drop in some regions.
   As of June 29th, 2007 in East China, the bulk trading price
of PP filament materials was at RMB12 000-12 350/t, an increase
of RMB150-350/t over the same period of last month.
   In July 2007, the demand for PP in downstream sectors will
be unlikely to increase drastically, but considering the supply
decrease caused by the overhaul in some PP producers such as
Sinopec Shanghai Petrochemical, CNPC Daqing Petrochemical and
Sinopec Zhongyuan Ethylene, the price of PP will increase
further.

Polystyrene

In early and mid- June 2007, due to the price decrease of styrene,
the market price of PS (polystyrene) dropped slightly with few
trading actions. At the end of June, some domestic PS producers
lowered their ex-work prices because of the constant price drop
of styrene and softening demand in downstream sectors.
   As of June 29th, 2007 in East China, the bulk trading price
of GPPS (general purpose polystyrene)was at RMB13 700-14 100/t,
a drop of RMB200-400/t from the same period of last month, and
HIPS (high impact polystyrene)was traded at RMB14 000-14 400/t,
a decrease of RMB200/t.
   In July 2007, some PS enterprises will lower their operating
rate due to the tense power supply in summer, the supply of PP
will decrease. However, the demand for PS in downstream sector
will decrease further because China implements the policy of
lowering export rebates, the price of PS therefore will probably
drop slightly.

Polyvinyl chloride

Due to the high prices of raw materials and the tense supply in
domestic market, China's prices of PVC (polyvinyl chloride) went
up constantly from early April 2007 to early June 2007. In East
China, the price of PVC using the ethylene process rose from RMB7
100-7 400/t to RMB8 100-8 300/t, and the price of calcium carbide
process PVC increase from RMB6 550-6 650/t to RMB7 800-8 100/t.
   In mid-June 2007, due to the demand decline in downstream
sectors, the price of PVC began to decrease. At the end of June
2007, the prices were RMB8 000-8 300/t for PVC using the ethylene
process and RMB7 300-7 500/t for calcium carbide process PVC in
East China.
   In July 2007, the demand for PVC will be slack, however, due
to the constant increase of production cost, the output will be
affected, and the price of PVC will probably rebound slightly.