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TableofContents

ConfidentialityStatement YnFxMonthlyPriceForecastNylon... AsianPriceForecast Naphtha Benzene..... Caprolactum NylonChips... NylonFDY... NylonDTY. EuropeanPriceForecast. Naphtha Benzene..... Caprolactum NylonPOY...... NylonTextured. POY167dtex 167dtex USAPriceForecast. Naphtha Benzene..... Caprolactum NylonPOY...... NylonTextured. POY70D. TexturedYarn150D.. 150D

2 3 3 3 3 3 3 3 3 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6

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ConfidentialityStatement
This document is confidential and has been made available to the individual to whom it is addressed on the understanding that its py g p y part p y any y process p content and copyrights will not be misused. Reproduction of any of this work by whatsoever without written permissionofYNFX.comisstrictlyprohibited. All prices in this PriceWatch Report are indicative prices and may vary according to the type of fiber, quality level required. Information contained in this report is obtained from sources believed to be reliable, however YNFX.com will accept no responsibility or liability for commercialdecisionsclaimedtohavebeenbasedonthecontentofthereport.

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AsianNylonChainPriceForecast
Product/Specs Naphtha Benzene Caprolactum NylonchipsSDhigh speedspinning NFYFDY70D/24FSD NFYDTY70D/24FSD Market JapanCFR KoreaFOB SEAsiaCFR SEAsiaCIF Chinamainstreamcash Chinamainstreamcash US$/ton US$/ton US$/ton US$/ton US$/ton US$/ton May13 Jun13 Sep13 Dec13 %YoY %YoY %YoY Actual Forecast Mostlikely Tentative 846.98 850.68 15.3 861.78 12.2 872.89 7.5 1,292.60 1 292 60 1,296.94 1 296 94 27 1 1,309.97 27.1 1 309 97 6 6 6.6 1 322 99 1,322.99 9 9.4 4 2,303.00 2,309.25 1.0 2,328.02 2.0 2,346.78 3.4 2,677.00 2,684.91 3,914.35 3,924.65 4,204.90 4,217.94 0.4 2,708.63 4.6 3,955.54 5.7 4,257.06 0.9 2,732.35 0.3 3,986.44 0.1 4,296.18 3.2 1.7 1.7

4000 CPLPriceTrend 3500 3000 2500

US$/Tons

4500 NylonChipsPriceTrend 4000 3500 3000

US$/Tons

2000

J FMAM J J A S OND J FMAM J J A S OND J FMAM J 2011 2012 2013

2500

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM J 2011 2012 2013

6000 NylonFDYPriceTrend 5500 5000 4500 4000

US$/Ton

6000 5500 5000 4500 4000

US$/Ton

NylonDTYPriceTrend

3500

J FMAM J J A S OND J FMAM J J A S OND J FMAM J 2011 2012 2013

3500

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM J 2011 2012 2013

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NYLONCHAININASIA
ForecastforJune2013 Benzene prices in Asia will continue to rise in May after gaining about US$20 in April. However, this would largely depend on the movements in US and European benzene markets and overall behavior of the energy complex. Most benzene derivative markets were in poor shape and demand is not expected to grow significantly over the remainder of the year. The worry would be more on increasingly constrained supply that will push up benzene prices, as more ethane crackers are added. But high benzene will not be enough to encourage a move back to naphtha, so there will be no effective market based correctionmechanismtocontrolnyloncosts. As China moves towards caprolactum self sufficiency and Taiwan getting increasingly inundated with material which used to go to the mainland, buyers are changing strategy, and there is a high possibility that the regions caprolactum markets will increasingly move to spot pricing, with contract references less relevant. This could well lead to a revision of the caprolactumpricinginAsia. After dropping for two consecutive months, nylon filament yarns prices are expected to gain marginally in June, given the recent strengthening of caprolactum and to that effect polyamide chips. However, nylon textile filaments, especially texturedyarns,haveshownlittleresponsetothecaprolactummovementinrecenttimes. TrendsinMay Asian benzene prices continued to fall in May pushed down by flat crude oil and falling margins in naphtha feedstock. However tightness in benzene itself limited the fall and driven by lower crude oil and naphtha prices. However, prices The Nippon contract increased US$18 to US$1320 a ton while the US and Europe also saw contracts hiked, implying that the regional prices are stilltooclosetosupporttrade. In Asia, caprolactum spot prices rose marginally after falling close to US$150 a ton. May prices were up US$18 a ton SE Asian CFR. In China, US$denominated prices decreased US$3060 to US$2,2502,300 a ton CFR. At current benzene and ammonia prices, very few producers were able to cover cash costs. Reflecting this nomination for May was mainly in the range of US$2,4002,500aton. Nylon chip prices remained firm on support of caprolactum market by month end, but the uptick in chip price was limited, mainly holding stable or increasing marginally. Semidull highspeed spinning nylon chips discussions were at higher end spot average declined during May. As for bright conventional spinning nylon chips, prices were flat and the uptick was limited. Nylon textile filament prices in China have on many occasions continued to weaken in May, but in general they are a little steadier. Regional offers are up a cent at US$3.423.50 a kg C+F, while Chinese export prices have moved up by US cents 2 to US$3 353 US$3.35 3.42 42 per k kg FOB FOB. I In DTY, DTY the th medium di deniers d i (4070) i in China Chi were in i line li with ith April, A il while hil export t quotes t for f May M werelittlefirmer,in40denieratUS$3.553.62perkgFOBandin70denieratUS$3.353.42akg.

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USANylonChainPriceForecast
Product/Specs Naphtha Benzene Caprolactum NFY70200D,weave NFYTextured70f68(Ny,66) Market USGulf USGulfFOB Delivered Delivered Delivered US$/bl UScents/gal US$/ton UScents/lb UScents/lb May13 Actual 104.68 440 20 440.20 2,210.00 297.50 357.50 Jun13 Sep13 Dec13 %YoY %YoY %YoY Forecast Mostlikely Tentative 105.17 5.3 106.66 14.6 108.14 8.9 441 13 2 7 443.92 443 92 0 4 446 71 13 2 441.13 2.7 0.4 446.71 13.2 2,207.17 11.2 2,198.69 7.3 2,190.20 4.5 298.31 12.6 300.74 1.1 303.17 1.9 358.42 0.3 361.17 1.0 363.92 1.8

2500 2300 2100

305 285 265

1900 1700
US$/To ons

CPLPriceTrend

245
US$/To ons

NFY70 200DWeaving PriceTrend

1500

J FMAM J J A S OND J FMAM J J A S OND J FMAM J 2011 2012 2013

225

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM J 2011 2012 2013

375 365 355 345 335

US$ $/Tons

NFYTextured70f68 PriceTrend

325

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM J 2011 2012 2013

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EuropeanNylonChainPriceForecast
Product/Specs Naphtha Benzene Caprolactum NFYPOY78dtex,(Ny,6) NFYTextured78f68(Ny,6) Market Rotterdam RotterdamFOB Delivered Delivered Delivered US$/bl US$/ton US$/ton UScents/lb UScents/lb May13 Actual 91.57 1 371 20 1,371.20 2,501.00 223.50 285.50 Jun13 Sep13 Dec13 %YoY %YoY %YoY Forecast Mostlikely Tentative 91.98 14.1 93.22 12.8 94.45 9.0 1 374 61 8 6 1,384.85 1 384 85 2 4 1 395 09 0 1,374.61 8.6 2.4 1,395.09 8 8.0 2,502.49 3.2 2,506.95 3.4 2,511.41 0.3 224.21 6.8 226.34 7.3 228.47 6.8 285.77 2.6 286.56 1.6 287.36 0.5

3500 3250 3000 2750 2500 2250

US$/Ton

CPLPriceTrend

325 275 225 175

UScents/ /lb

NFYPOYPriceTrend

2000

J FMAM J J A S OND J FMAM J J A S OND J FMAM J 2011 2012 2013

125

J FMAM J J A S ON D J FMAM J J A S ON D J FMAM J 2011 2012 2013

400 NFYTexturedPriceTrend 350 300 250 200

USCents/lb

150

J FMAM J J A S ON O D J FMAM J J A S ON O D J FMAM J 2011 2012 2013

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NYLONCHAININEUROPE&USA
ForecastforJune2013 Benzene's fundamentals in Europe are pointing to higher pricing as there is little stock throughout the chains and downstream units are likely to ramp up in June. On the other hand, there is a lot of negativity which will not allow prices to se The e market a et will remain e a stuck stuc in the t e same sa e range a ge due to lack ac of o d direction ect o arising a s g from o conflicting co ct g signals s g a s from o the t e markets a ets rise. and the general macroeconomic scenario. US spot benzene will remain flat at May levels in June while European numbers mayinchupabitinJune. Reflecting the softness in benzene values in US, caprolactum prices may go down in June. In May, caprolactum prices were up US$20 in the US. The rise in benzene prices in Europe may provide some base for caprolactum contracts to conclude. While it will not be unusual for negotiations to be protracted at a time when the spot prices have fallen significantly, the situationinJunewillbetypicalandmaybeanindicationofthingstocome. In US, nylon texturising market will continue running at full capacity which may lead to heavier imports of DTYs but not POYs. In case of carpet yarn, US housing figures are encouraging buy there will be no much benefit passing through nylon carpet yarns and the volumes were remain flat. There is a possibility of nylon filament prices moving up in June after a long period of stability. In Europe, nylon filament yarn markets will continue to maintain volumes but pricing will see opposite moves.POYsaresettogaininJunewhileDTYsmaylosesomeofitsgainsseeninMay. TrendsinMay Benzene contract for May was up US cents 11 to US$4.47 US$4 47 per gallon in the US, US while same in Europe went up Euro 64 to Euro 1,056 per ton. The hike was despite the fact the crude oil prices remained relatively flat and margins in naphtha feedstockshrinking.Inthespotmarkets,benzenewascheaperinUSwhileitwascostlierinEurope. Caprolactum, on the other hand, trended adversely. After losing about US$175 a ton in the US for the past three months, caprolactum prices gained US$20 in May while they settlement could not be reached in Europe which still remained in disorderduetofluctuatingbenzenemarket. Nylon textile filament business remained strong for the US producers in May, May mainly supported by CAFTA. CAFTA Demand for both POY and FDY was equally strong. While there has been some denier reduction as military demand for nylon FDY weakened and been replaced by finer denier clothing applications. In South America, demand for all filaments was weak. Nylon DTY 70Dand100DforknittingwasofferedfromChinaatUS$3.853.90akgCIF. In Europe, nylon textile filament market maintained a sustainable level of activity and there were fewer gaps in operating rates. 78F68 textured yarn and its associated variants represent one of the largest product categories use in Europe was in the price range of Euro 4.605.10 per kg. Nylon BDF market showed no significant change in May while nylon industrial fil filament tmarket k tremained i dunder d pressure.

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