Marc Neulight joins Neuchem Inc.

We are very pleased to announce that Marc Neulight has recently joined Neuchem Inc. and has established a branch office in San Francisco. His objectives are to expand Neuchem's product, supplier and customer base.
Marc graduated from Emory University and has a MBA in finance from the Thunderbird School of International Management. He has worked and traveled in a number of foreign countries and is fluent in French, Spanish and has a working knowledge of Portuguese. He worked more than one year for Oxiquim S.A. in Chile whom we have represented in the USA for the past 28 years. Marc brings to the company an extensive knowledge of finance, accounting, marketing, computers, a strong work ethic and tremendous enthusiasm.
Marc may be contacted as follows:

Marc Neulight
Neuchem Inc.
2890 California Street, Suite 403
San Francisco, CA 94115
T: (415) 202-0778
F: (415) 358-4269
marc@neuchem.com

Neuchem Inc., an importer and distributor of industrial chemical products, brings worldwide production to our customers’ doorstep in a hassle-free environment. We have established long-term relationships with both suppliers and customers, providing continuity of distribution and supply on a competitive basis. Our Products have applications in the Paint & Coatings, Resins, Lubricants, Pharmaceutical, Biotechnology, Textile & Leather Intermediates, Water Treatment, Chemical Processing, and Agriculture industries. Since Neuchem was founded in 1993, we have enjoyed continuous growth and look forward to many more years of success

Record-setting US methanol prices lead global prices higher on tight supplies

August 23, 2006
The US spot methanol market has seen a 55-cent jump in prices, a 69% increase, since the beginning of July to reach 135 cents/gal ($450/mt) FOB USG (August 16) for prompt delivery. This increase has pulled global markets higher amid planned and unplanned outages and tight inventories around the globe.

In Europe, spot methanol prices were also on the rise, with buying interest August 17 at Eur 280/mt ($359/mt) FOB Rdam for August or September material. Asian markets were not reacting as strongly, with CFR South Korea buyers seeking cargoes below $290/mt while sellers were at and above $295/mt CFR. In Taiwan, buyers were below $275/mt CFR while sellers were above $280/mt CFR. Supplies in Asia, however, were still considered tight despite relatively low prices compared to other regions.

US spot prices have been rising as supplies have dwindled due to a series of plant operating problems. The latest production problem was in Equatorial Guinea where Atlantic Methanol Production Co declared force majeure on methanol supplies, a company source confirmed August 15. The AMPCO announcement sparked the 15-cent jump to 135 cents/gallon.

Due to the tight supply situation in the US, distributors and consumers have been struggling to secure material, and at least one distributor said it will only be able to deliver 60% of contracted supplies to its customers in September.

Additionally, BP Refining and Petrochemicals said August 17 it was running its 240,000 mt/year methanol unit at Gelsenkirchen at lower operating rates, as a result of a technical issue. Tightness in Europe could force consumers to run their units at lower operating rates should the shortage of material continue, market sources said August 17. "There is a possibility that we could be placed on allocation by our suppliers, although that hasn't happened yet," one source said.
Due to healthy demand in the formaldehyde market, methanol consumers were seeking to receive all contractual material. Should the methanol market continue to be tight, allocation could be enforced by end-month or early September. With consumers exercising their option to receive maximum contractual volumes because of the lower Q3 methanol contract price of Eur 250/mt FOB Rdam, versus current spot prices, pressure has been put on producers.

While market sources expect supplies to remain tight at least through the end of the year, some relief is in sight, as Methanex Corp said August 16 it re-started its 530,000 mt/year methanol plant at Waitara Valley, New Zealand, in response to current tight global supplies.Source: Platts.com Aug. 23, 2006.

Maleic Anhydride - Price information
Updated to mid-August 2006

United States
MA contract prices in the US remained unchanged at 68.00-76.00 cent/lb fob in the mid-May through mid-August period.
However, MA prices are likely to increase by 3.00 cent/lb in the fourth quarter on the back of butane, as the feedstock cost jumped to an average of 134.00 cent/gal in July, from 122.00 cent/gal in the second quarter.
The US remained sold-out of MA between mid-May and mid-August, with imports coming in mostly from Asia and South America. First-half imports were down 23.2% at 14,100 tonne against the same period last year, according to Department of Commerce (DoC) data. Market sources expect MA imports to stand at 23,000 tonne in 2006. Last year, MA imports totaled 31,100 tonne.

Asia
Asian spot prices of briquette maleic anhyride (MA) rose 11.7% in the period the second half of May to the first half of August, to $1,360-1,400/tonne CFR Southeast Asia for the week ending 11 August.
Domestic prices for liquid MA in Japan were maintained at JPY140-150/kg, unchanged in the months May to July, due to strong resistance from buyers.
Meanwhile, some producers cited growing feedstock benzene cost for the increase in prices. With major Taiwanese producers reducing MA production due to cuts in their feedstock allocations following cracker turnarounds, some market participants expected supply in the market to be tighter in the next quarter.

Europe
June MA contracts remained stable, but hefty increases were obtained in July, after production problems caused the market to become extremely tight. July and Q3 contracts moved up Euro150-170/tonne. Molten numbers were assessed at Euro1,570-1,650/tonne FD NWE, and flake prices at Euro1,530-1,590/tonne FD NWE. August MA contracts held steady at these levels.
Spot prices soared in June due to serious supply shortages, particularly for molten product. June liquid prices gained around Euro400/tonne and moved up to Euro1,750-1,850/tonne FD NWE. June flake prices moved up by around Euro300/tonne to Euro1,600-1,700/tonne FD NWE. Prices remained at these high levels throughout July and the beginning of August.
Source: ICIS pricing.

Phthalic Anhydride - Price information
Updated to mid-August 2006

United States
PA prices in the US rose to record-breaking levels during the past months, with the range for molten product climbing to 65.50-70.50 cent/lb in mid-August, from an average of 57.00 cent/lb in mid-May. Meanwhile, the price of flaked material jumped to 66.50-70.50 cent/lb, from an average of 59.00 cent/lb.
Prices of PA soared on the back of OX, as the feedstock rose to 54.50 cent/gal in August, from 45.50 cent/gal in May. OX prices have been climbing on the back of aromatics, which are in high demand as gasoline octane boosters amid the phase-out of methyl tertiary butyl ether (MTBE).
The PA prices could increase by another 2.00 cent/lb in September should PA producers match a similar increase in the August OX settlement.
First-half PA imports rose 75.5% to 6,760 tonne, year-on-year, with most of the imported product, or about 91%, coming from neighbouring Mexico. PA imports are expected to total 8,200 tonne in 2006, up from 7,350 tonne last year.

Asia
Phthalic anhydride (PA) prices in Asia jumped 34% in the period of the second half of May to the first half of August, on the back of escalating feedstock orthoxylene (OX) costs. PA prices were assessed at $1,400-1,450/tonne CFR China Main Port (CMP) for the week ended 11 August, hitting another ten-year high as prices continue their climb.
Buying ideas weakened in end-July, due to a weak market for downstream product dicotyl phthalate (DOP). However, trades picked up in the next two weeks when demand for DOP gradually resumed. Market participants preferred to monitor the market in view of the sudden price hikes in the past months, awaiting a clear price direction before offering or purchasing PA.

Europe
Contract prices for PA rose by Euro25/tonne in June, and by another Euro25/tonne in July to Euro1,040-1,100/tonne FD NWE. Increases were pushed through due to higher OX prices.
August prices were expected to rise significantly, following the Euro90/tonne hike in the August OX contract price.
Spot prices were fairly steady in June, but increased rapidly towards the end of July as the market became tighter. Flake prices rose Euro110-190/tonne in July to Euro1,150-1,250/tonne FD NWE, and molten numbers rose Euro90-110/tonne to Euro1,150-1,200/tonne FD NWE. August prices also moved up steadily at the beginning of the month.
Source: ICIS pricing.