Most Organics Remain Bullish    

Phenol  

In early October 2009, due to increased demand, China's phenol prices rebounded. From mid to late October, the price of phenol increased apparently in response the price rise of pure benzene and decreased imports of phenol.
    As of November 4th,the bulk trading prices of phenol were RMB8 500-8 600/t at the ports of eastern China, an increase of RMB750-800/t over a month earlier, and in other regions of China, the bulk trading prices were up RMB200-400/t to RMB8 350-8 700/t.
    Players take wait and see attitude toward the future market. If the production cost of phenol continues to rise, the price of phenol will probably increase.

Acetone

In October 2009, China's acetone price rose considerably in response to the increase of production cost caused by the price rise of crude oil in the international market.
    As of November 4th, acetone was traded at RMB6 150-6 200/t in the ports of eastern China, a rise of RMB350/t over a month earlier.
    The price of crude oil in the international market is expected to be dull with fluctuation and the demand for acetone will be slack, so the price will probably drop in November 2009.

MEG

In October 2009, China's MEG (monoethylene glycol) prices rose considerably because of the price rise of crude oil in the international market and increased demand for MEG.
   As of November 4th, MEG was traded between RMB6 100/t and RMB6 120/t in eastern China, a rise of RMB520-550/t over the previous month.
   The production cost of MEG is expected to fall and the supply will be sufficient, so the price of MEG will probably decrease slightly.

Diethylene glycol

In October 2009, because of the price rise of crude oil in the international market and demand growth of diethylene glycol, China's diethylene glycol prices were up markedly with increased trading actions.
    As of November 4th, diethylene glycol was traded at RMB5 750-5 850/t in eastern China, an increase of RMB600-650/t over a month before.  
    The supply of diethylene glycol is expected to be tense, but due to the soft demand for diethylene glycol, the price of diethylene glycol is expected to be dull in short term.

Methanol    

In October 2009, because of the slack demand for methanol in downstream sectors, China's methanol price dropped with fluctuation. In eastern China, the bulk trading price of methanol was around RMB2 020-2 050/t in late October, down around RMB100/t from that in late September 2009.
   In early November, the price of methanol fluctuated slightly with few trading actions. In mid November, methanol price in some local regions rebounded slightly in response to the low inventory.
   The supply of methanol is expected to decrease and the demand for methanol will still be soft, so the price of methanol will probably fluctuate slightly.

Acetic acid   

In late October 2009, domestic acetic acid producers lifted their quoted prices in succession, but the supply of acetic acid was surplus, so China's acetic acid price only increased slightly. In eastern China, the bulk trading prices of acetic acid were RMB2 700-2 900/t, a rise of RMB50/t over those in mid October.
   From early to mid November, the sufficient supply and stable demand restricted the price rise of acetic acid, so the acetic acid price remained stable.  
   The supply of acetic acid is expected to be tense and will give a support to the price of acetic acid, but the demand for acetic acid will still be soft, so the price of acetic acid will probably increase slightly.

Phthalic anhydride

In the first half of October 2009, because of the price rise of crude oil in the international market, increased demand and tense supply of phthalic anhydride, China's phthalic anhydride price increased apparently. In eastern China, the price reached RM8 100-8 200/t in mid October, a rise of RMB500/t over that in early October.
   In the second half of October, traders held a cautious attitude to the future market, so the price of phthalic anhydride was dull with few trading actions. In eastern China, the price dropped to RMB8 000/t by the end of October.
   The demand for phthalic anhydride is expected to be slack and production cost will maintain at a high level, so the price of phthalic anhydride will be likely to fluctuate slightly.