Prices for expanded polystyrene grew more than by USD 120/t from the beginning of 2011

MOSCOW (MRC) -- As a result of considerable growth of EPS cost and low demand for the products made of EPS, companies reduced their purchases, according to MRC Price Forecasting.

World quotations for April BRENT exceeded USD 110/bbls by the end of 23 February trading. Significant raw materials price hike resulted in growing price for oil refining products. In particular, in the European markets styrene cost grew by USD 110-130/t over the last month.

The current situation enforced polystyrene producers to increase material price to minimize the losses from the margin profit. On the other side, EPS prices grew more than by USD 120/t from the beginning of the year.

EPS purchasers appeared not ready for such increase in price for the material. Besides, low demand for finished goods made of EPS doesn't allow trading companies and converters to transfer the grown expenses for the final customer. In the present situation companies don't hurry to increase the volumes of purchases.

For the Russian companies the situation referring EPS purchases is quite
tricky: companies split into two groups. One group took expective position concerning PS purchases while the other group is trying to contract the volumes of products for the present price expecting its further growing.

MRC

(Dow Chemical) -- Dow going to pay off in the first quarter

The Dow Chemical Company (NYSE: DOW) announced today that it is launching a cash tender offer for approximately $750 million aggregate principal amount of notes listed by Dow and its subsidiaries.

This announcement follows a series of debt reduction activities the Company plans to execute in the first quarter, including the pay-off of $800 million of matured debt and more than $150 million of InterNotes. Taken together, these actions will enable Dow to reduce its overall debt by more than $1.5 billion.

⌠Our actions this quarter will enable us to deliver a structural reduction in interest expense, and the result is accretive to shareholders, said Bill Weideman, Dow's executive vice president and chief financial officer. ⌠It's also important to note that, after retiring this debt, we will still have a cash balance that is higher than our historical average, which illustrates our strengthened capital structure and enhanced financial flexibility.

Today's cash tender offer addresses high-coupon debt, some of which was issued during the global economic crisis of 2009.MRC

(ICIS) -- Asia methyl tertiary butyl ether (MTBE) price is expected to continue on an uptrend after crossing the $1,000/tonne (┬730/tonne) mark this week, due to the global oil rally and strong demand for the octane booster, traders said on Thursday.

MTBE prices were assessed as $1,000-1,020/tonne FOB (free on board) Singapore on Wednesday's close, the highest since 5 September 2008, ICIS data showed. Prices could scale higher amid surging global crude futures, a trader said.

Heightened tension in Libya, which supplies 2% of the global oil production, is sending jitters across global markets - energy, commodities and stocks - with U.S. crude futures hitting a two-and-a-half year high on Wednesday.

Meanwhile, artificially capped pump prices in China created a difficult situation for the domestic Chinese MTBE market, traders said.

MRC

(ICIS) -- Chemical stock prices plunged on Tuesday, closing much lower for several North American companies as unrest continued in Libya.

Dow Chemical closed at $37.16/share, down 3.6%, and DuPont closed at $54.38/share, down 2.9%. LyondellBasell closed at $35.84/share, down 5.6% from Friday. US markets were closed on Monday for a holiday.

Spot ethylene offers were heard at 51.00 cents/lb, up from offers at 49.50 cents/lb. Refinery-grade propylene (RGP) was bid at 59.00 cents/lb with no offers. Last week, RGP traded at 62.00-65.00 cents/lb.

In Libya, leader Muammar Qaddafi vowed to continue fighting instead of stepping down, according to the Financial Times.

MRC

(ICIS) -- Styrene butadiene rubber (SBR) prices may rise above $4,000/tonne (┬2,920/tonne) in March - a record high - in southeast Asia and India if demand continues to exceed supply, SBR producers said on Wednesday.

March spot offers for non-oil grade 1502 SBR have increased to $4,000-4,050/tonne CFR (cost & freight) in southeast Asia and India following trade done at $3,900/tonne CFR in these countries. (please see graph below)

The highest record for non-oil grade 1502 was in July 2008 when prices hit $3,300/tonne CIF (cost, insurance & freight) in China, ICIS data showed.

Natural rubber (NR) and synthetic rubber are used in the production of tyres for the automotive industry and their prices tend to impact and move in tandem with each other, SBR producers said.

MRC