Petrochemical Index (IPEX) Methodology

The ICIS Petrochemical Index (IPEX) provides a capacity-weighted measure of average change in petrochemical prices over time. Starting in January 1993, ICIS pricing historical prices for the US, western European and northeast Asian markets for 12 product components (see below) have been weighted by each region s nameplate capacity to establish a monthly pricing index. As of July 2010, the index has been revised retrospectively to replace latest available contract prices at the time of publication that had previously been used in the data series with actual settled contract prices. This has had the effect of moving the derived IPEX from an estimated status to an actual status. Going forward from July 2010, the index will be revised the month following publication to reflect any contract prices outstanding at the time of initial publication and subsequently settled. In deriving each month s index: - contract prices are those applicable to the previous calendar month; - domestic and spot prices are an average of ICIS pricing s weekly published prices for the previous calendar month (four or five weeks accordingly) This continues the principle of utilising most recent data averages to drive the IPEX. Where ICIS price quotations are not available for individual weeks because of public holidays, then previous week data is carried forward. This form of data interpolation is inferring some limited data points that may not be market derived, and customers should be aware of this assumption. PRODUCT COMPONENTS Prices and regional plant capacities for the following 12 petrochemical grades are included in the index calculation: 1. ETHYLENE (i) Ethylene in US Gulf Contract Delivered. From Jan 1993 to Feb 1997. Quoted in (ii) Ethylene Net US Gulf Contract Delivered. From Mar 1997 to present. Quoted in 2

(i) Ethylene (Quarterly) in Europe Contract FD NWE. From Jan 1993 to Dec 1999. Quoted in DM/tonne. Converted to (ii) Ethylene (Quarterly) in Europe Contract FD NWE. From Jan 2000 to Dec 2008. (iii) Ethylene (Monthly) in Europe Contract FD NWE. From Jan 2009 to present. Quoted in /tonne. Converted to Ethylene in Spot CFR NE ASIA. From Jan 1993 to present. Quoted in 2. PROPYLENE Propylene in US Gulf Contract P Grade. Quoted in (i) Propylene in Europe Contract FD NWE. From Jan 1993 and Dec 1999. Quoted in DM/tonne. Converted to (ii) Propylene in Europe Contract FD NWE. From Jan 2000 to present. Quoted in /tonne. Converted to Propylene in Spot CFR NE ASIA. From Jan 1993 to present. Quoted in 3. BENZENE Benzene in US Gulf Contract FOB. From Jan 1993 to present. Quoted in $/gal. Converted to $/tonne (299 US gal per tonne). 3

(i) Benzene in Europe Contract FOB NWE. From Jan 1993 to Dec 1998. Quoted in DM/tonne. Converted to (ii) Benzene in Europe Contract FOB NWE. From Jan 1999 to Dec 2003. Quoted in /tonne. Converted to (iii) Benzene in Europe Contract CIF NWE Monthly. From Jan 2004 to present. Quoted in /tonne. Converted to Benzene in Spot CFR NE ASIA (Friday close). From Jan 1993 to present. Quoted in 4. TOLUENE Toluene (N Grade) In US Gulf Spot FOB Barges (weekly average). From Jan 1993 to present. Quoted in $/gal. Converted to $/tonne (303.7 US gal per tonne). (i) Toluene in Europe Contract FOB NWE. From Jan 1993 and Sep 1999. Quoted in DM/tonne. Converted to (ii) Toluene in Europe Contract FOB NWE. From Oct 1999 to Apr 2004. Quoted in /tonne. Converted to (iii) Toluene in Europe Contract FOB NWE. From May 2004 to present. Quoted in Toluene in Spot CFR NE ASIA (Friday close). From Jan 1993 to present. Quoted in 5. PARAXYLENE Para-Xylenes in US Gulf Contract Delivered. From Jan 1993 to present. Quoted in 4

(i) Para/Ortho-Xylenes: Para-Xylenes in Europe Contract FD NWE. From Jan 1993 to Mar 1999. Quoted in DM/tonne. Converted to (ii) Para/Ortho-Xylenes: Para-Xylenes in Europe Contract FD NWE. From Apr 1999 to Mar 2003. (iii) Para/Ortho-Xylenes: Para-Xylenes in Europe Contract FD NWE (Monthly). From Apr 2003 to present. (i) Para/Ortho-Xylenes: Para-Xylenes in Spot CFR Korea. From 4 Jun 1993 to 12 Apr 1996. Quoted in (ii) Para/Ortho-Xylenes: Para-Xylenes in Spot CFR NE Asia. From 19 Apr 1996 to Feb 2004. Quoted in (iii) Para/Ortho-Xylenes: Para-Xylenes in Contract CFR Asia (Monthly). From Mar 2004 to present. Quoted in 6. STYRENE Styrene in US Gulf Contract FOB. From Jan 1993 to present. Quoted in cents/lb. Converted to (i) Styrene in Europe Contract FD NWE. From Jan 1993 to Dec 1998. Quoted in DM/tonne. Converted to (ii) Styrene in Europe Contract FD NWE. From Jan 1999 to Mar 2004. Quoted in /tonne. Converted to (iii) Styrene in Europe Contract FD Barge NWE. From Apr 2004 to Jun 2011. Quoted in /tonne. Converted to (iv) Styrene in Europe Contract Average FD Barge NWE. From Jul 2011 to present. 5

Styrene in Contract CFR NE Asia. From Jan 1993 to present. Quoted in 7. BUTADIENE Butadiene in US Gulf Contract FOB USG. From Jan 1993 to present. Quoted in cents/lb. Converted to (i) Butadiene in Europe Contract FD NWE. From Jan 1993 to Dec 1998. Quoted in DM/tonne. Converted to (ii) Butadiene in Europe Contract FD NWE. From Jan 1999 to present. Quoted in /tonne. Converted to Butadiene in Spot CFR NE Asia. From Jan 1993 to present. Quoted in 8. METHANOL Methanol in US Gulf Contract Barge. From Apr 1993 to present. Quoted in cents/gal. Converted to $/tonne (334 US gal per tonne). (i) Methanol in Europe Contract FOB RDAM. From Jan 1993 to Jun 1999. Quoted in DM/tonne. Converted to (ii) Methanol in Europe Contract FOB RDAM. From Jul 1999 to present. Quoted in /tonne. Converted to Methanol in Spot CFR Taiwan. From Jan 1993 to present. Quoted in 6

9. POLYVINYL CHLORIDE (i) Polyvinyl Chloride in US Gulf Domestic General Purpose. From Jan 1993 to Feb 2004. Quoted in (ii) Polyvinyl Chloride in US Gulf Contract General Purpose. From Mar 2004 to present. Quoted in cents/lb. Converted to $/tonne (i) Polyvinyl Chloride in Europe Domestic Germany. From Jan 1993 to 12 Nov 1999. Quoted in DM/kg. Converted to (ii) Polyvinyl Chloride in Europe Domestic Germany. From 19 Nov 1999 to 22 Feb 2002. Quoted in /kg. Converted to (iii) Polyvinyl Chloride in Europe Domestic Germany. From 1 Mar 2002 to 30 Dec 2011. (iv) Polyvinyl Chloride in Europe Domestic (Pipe Grade) FD NWE. From 6 Jan 2012 to present. (i) Polyvinyl Chloride in Spot CFR Hong Kong. From Jan 1993 to 1 Dec 2006. Quoted in (ii) Polyvinyl Chloride in Spot CFR China Main Port. From 8 Dec 2006 to present. Quoted in 10. POLYETHYLENE Polyethylene: LDPE (Liner Grade) In US Gulf Domestic Bulk. From Jan 1993 to 31 Dec 2010. Quoted in Polyethylene: LDPE (Liner Grade) In US Gulf Contract Bulk. From Jan 2011 to present. Quoted in (i) Polyethylene: LDPE (GP Film) In Europe Domestic. From Jan 1993 to Dec 1999. Quoted in DM/kg. Converted to 7

(ii) Polyethylene: LDPE (GP Film) In Europe Domestic. From Jan 2000 to present. Quoted /tonne Converted to Polyethylene: LDPE (Film) in Spot Hong Kong. From Jan 1993 to present. Quoted in 11. POLYPROPYLENE Polypropylene (Homopolymer) in US Gulf Domestic Bulk (Injection). From Jan 1993 to 31 Dec 2010. Quoted in Polypropylene (Homopolymer) in US Gulf Contract Bulk (Injection). From Jan 2011 to present. Quoted in (i) Polypropylene (Injection) in Europe Domestic Germany. From Jan 1993 to Dec 1999. Quoted in DM/kg. Converted to (ii) Polypropylene (Injection) in Europe Domestic Germany. From Jan 2000 to 18 Apr 2008. (iii) Polypropylene (Injection) in Europe Domestic FD EU. From 25 Apr 2008 to present. (i) Polypropylene (Injection) in Spot Hong Kong. From Jan 1993 to 8 Apr 2004. Quoted in (ii) Polypropylene (Flat Yarn) in Spot Hong Kong. From 15 Apr 1994 to 11 Oct 2002. Quoted in (iii) Polypropylene (Flat Yarn) in Spot China Main Port. From 18 Oct 2002 to present. Quoted in 12. POLYSTYRENE 8

Polystyrene (GP) in US Gulf Domestic Bulk. From Jan 1993 to 24 Jun 2011. Quoted in Polystyrene (GP) in US Gulf Contract Bulk. From Jul 2011 to present. Quoted in (i) Polystyrene (GP) in Europe Domestic Germany. From Jan 1993 to Dec 1999. Quoted in DM/kg. Converted to (ii) Polystyrene (GP) in Europe Domestic Germany. From Jan 2000 to 18 Apr 2008. (iii) Polystyrene (GP) in Europe Domestic FD EU. From 25 Apr 2008 to present. Quoted in /tonne. Converted to (i) Polystyrene (GP) in Spot Taiwan. From Jan 1993 to Oct 2017. Quoted in (ii) Polystyrene (GP) in Spot China. From Nov 2017 to present. Quoted in REGIONAL PLANT CAPACITIES To weight product pricing in each grade, regional capacities [source: ICIS plants listing, June 2010] were added applying the following criteria: Regional Definitions The includes all facilities in each component grade in the US. includes facilities in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK. includes all facilities in northeast and southeast Asian countries, plus India, Pakistan, Australia and New Zealand. 9